Agency for Natural Resources and Energy estimates mid-term evaluation results on non-fossil energy targets―Further study on the special measures to reduce the target value of companies with low non-fossil energy ratio
On March 19th, METI (Ministry of Economy, Trade and Industry), Agency for Natural Resources and Energy (ANRE), summarized the simulation results on mid-term evaluation on the target to raise the ratio of the non-fossil energy procured by electricity retailers to 44%.
Examining how it affects to the purchase amount of non-fossil energy certificates when the special measures are taken for the companies of low non-fossil energy procurement ratio. As a result, there was a difference in the amount of purchase depending on whether the baseline is determined in FY2017 or FY2018.
It was revealed at the system working group (Chairperson: Akihiko Yokoyama, Professor of Graduate School of the University of Tokyo) of advisory committee on Energy and Natural Resources(advisory body of METI) held at the same day. At the time of setting the criteria for mid-term evaluation, it is planned to take special measures, which is “grand fathering” which lowers the target value of business operators operating at low non-fossil energy ratio.
In order to narrow the gap among the electricity retailers, it allows to obtain non-fossil energy certificates from the retail electricity supplier group through the in-house transactions, and if necessary, it allow to procure the certificates from the non-fossil energy value trading market and outside of the group.
ANRE set the base year to implement its special measures in FY2017 and FY2018, and assuming that the non-fossils energy ratio in the country has risen to 25%, analyzed the impact on the retail electricity suppliers to purchase the non-fossil certificates. The calculation results show that non-fossil certificates equivalent to 11.14% of own sales electric power in FY2017 and equivalent to 8.90% in FY2018 to be purchased from outside. ANRE proposed to set the base year as FY2018 whose data represents up-to-date situation of non-fossil energy. It is planned that the special measures will be reduced in two phases and the first phase will end in FY2022.
While the target of the Energy Supply Structure Upgrading Law is the retail electricity suppliers, power generation companies with the facilities producing non-FIT and non-fossil energy do not have the obligation to the law. For these companies, this system encourages them to implement the voluntary measures to promote utilization of the facilities to generate non-fossil energy by using the income obtained from the sales of non-fossil energy certificates and the explanations on the use of its income will be periodically asked.