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ARTICLE · 13 MARCH 2017

Amendments To Japan's Renewable Energy Act

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This Commentary provides a summary of the material changes that will go into effect as a result of the Amendments.

JapanEnergy and Natural Resources

On April 1, 2017, substantial portions of the Amendments ("Amendments") to The Act on Special Measures Concerning the Procurement of Renewable Energy by Operators of Electric Utilities (the "Act") will become effective. These Amendments, enacted on June 3, 2016,1 represent the most comprehensive set of changes to Japan's feed-in tariff system since the implementation of the Act in 2012.2 The Amendments reflect the efforts of the Ministry of Economy, Trade and Industry ("METI") to cause certified renewable energy facilities to meet certain feasibility criteria and to commence operation and power production within a specified period of time following certification. These Amendments will also require owners of renewable energy facilities to enter into an interconnection agreement with the relevant utility before certification and will introduce a bidding process for determining the purchase price for power generated by large-scale solar projects. In an effort to promote

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