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ARTICLE · 21 APRIL 2016

Japan Expands Renewable Energy Program, Tightens Requirements For Renewable Energy Projects

Jones Day
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This Commentary provides a summary of the Amendments, particularly as they affect current and future solar projects in Japan.

JapanEnergy and Natural Resources
Hirokazu Ina
Hirokazu Ina
Kaoru Umino
Kaoru Umino
Naoko Tokumoto
Naoko Tokumoto
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Japan's Cabinet recently approved a series of amendments (the "Amendments") to the Act on Special Measures Concerning the Procurement of Renewable Energy by Operators of Electric Utilities (the "Act"),1 which, when approved and implemented, are likely to have a significant effect on the feasibility and profitability of current and future renewable energy projects. The impacts on developers will include: (i)increasing pressure to conclude interconnection agreements with utility companies as quickly as possible to obtain facility certification by the Ministry of Economy, Trade, and Industry ("METI") and to secure a favorable purchase price; (ii)requiring detailed and comprehensive plans for project development at the time of facility certification, with disincentives for amending such plans after a project has been certified; and (iii)requiring developers of ongoing projects to review existing agreements with utility companies to ensure compliance with the Amendments.

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