FIT non-fossil certificates, minimum price adjusted to be 0.3-0.4 yen
On August 27th, the Agency for Natural Resources and Energy (ANRE) of the Ministry of Economy, Trade and Industry (METI) announced the minimum price for the “Renewable energy value trading market”, where consumers can directly participate in the trading under FIT (Feed-in Tariff for renewable Energy) non-fossil certificates, will be 0.3-0.4 yen per kWh. It will be a huge reduction from the current price of 1.3 yen in response to the consumers who demand to improve access to the renewable energy value. In the survey of consumers by ANRE, the most common request was between 0.1-0.3 yen.
ANRE presented at the system working group (WG Chair = Dr. Akihiko Yokoyama, Professor at Graduate School of the University of Tokyo) of Electricity and Gas Basic Policy Subcommittee of Advisory Committee for Energy and Natural Resources (advisory body of the Minister of Economy, Trade and Industry)
The conventional non-fossil energy value trading market will be divided and non-FIT certificates will be handled in the “Market for Achieving the Obligation of the Upgrading Law” which aims to achieve the Energy Supply Structure Upgrading Law. “Renewable energy value trading market” will also be established. The detailed design is progressing for the first auction on November 19-26th
Regarding the level of 0.4yen, ANRE analyzed the reduction effect on FIT surcharge by the sales of FIT certificates. The effect will be about the same as in FY2020, if 5.4 billion kWh(about 4 times the traded volume price in FY2020)is contracted.