I. The Details of the Nullification System and the Amendments
to the Operational Practices (Stricter Policy on Detached-Site
Projects)
1. Current Status of the Nullification
System
As we reported in our Japan Renewable Alert 44 and Japan Renewable Alert 47, the Act to Partially
Amend the Electricity Business Act and Other Acts in Order to
Establish a Resilient and Sustainable Electricity Supply System
(promulgated as of June 12, 2020; Act No. 49 of 2020; the
"Act"), which includes the fundamental
revamp of the Act on Special Measures Concerning Procurement of
Electricity from Renewable Energy Sources by Electricity Utilities
(Act No. 108 of 2011, as amended; the
"REA"), introduced the "FIT/FIP
approval nullification system," whereby FIT/FIP approvals are
to be automatically nullified by the passing of a certain period of
time, to be effective as of April 1, 2022.
