Japan Solar Update: No.73 (Nov 27 ~ Dec 1, 2023)
The Ministry of Economy, Trade and Industry (METI) presented the major points of discussion of the Procurement Price Calculation Committee in FY 2023 (draft).
<Key points>
- Concerning PV power generation, issues to be examined include the purchase price for FY 2025 and the tender scheme for FY 2024
- Concerning the expanding installation of rooftop PV systems, its handling should be examined based on the trends in the numbers of application for approvals
- The Committee plans to consider the promotion of PV installation to places where the PV systems had not been installed before such as buildings walls, based on the progress of technology development
Major points of discussion (general issues) (draft)
Acceleration of initiatives toward carbon neutrality in 2050
- With S+3E as a major premise, the basic policy is to make renewable energy the main power source, give the highest priority to renewable energy, curb the public burden and ensure harmony with local communities for the promotion of the maximum introduction of renewable energy
- Preparation of the environment for the grid development, promotion of the additional investment to maximize the use of existing renewable energy enactment of the GX Decarbonized Power Supply Act with measures to strengthen business discipline, etc.
Major points of discussion related to PV power generation (draft)
Purchase price/standard price for commercial/residential PV electricity for FY 2025
- Introduction of PV needs to be expanded further since PV accounts for a large part of 3040 energy mix
- Pricing to be examined to promote more efficient business operation self-sustainability and introduction expansion, with a premise of being in harmony with local community
* Target price: power generation cost of 7 Yen/KWh ($4.64 cents/KWh) for commercial PV in 2028, price standard the same level as wholesale market price for residential PV in 2028
Rooftop PV
Handling of rooftop PV to be examined based on the trends in the numbers of applications for approvals, where rooftop PV is exempted from tender schemes and its price is set higher than ground-mounted PV
PV installations to the places where PV systems had not been installed before**
Promotion of introduction to be examined with a premise of the progress of technology development, ensuring safety, harmony with communities, etc.
** Rooftops of small factories with small local capacity, building walls, etc.
Tender schemes for commercial PV for FY 2024
To be examined based on the tender results in FY 2023
PV systems applicable to of FIT/FIP programs for commercial PV in and after FY 2025
For >=50kW systems, handling will be examined based on the Committee’s previously-presented opinion which plans to expand the targe of FIP program gradually and promote the early independence considering the business environment, etc.
Requirements for local utilization of commercial low-voltage PV (10~50 kW)
To be examined based on the status of acquiring permission to convert agricultural land into the sites for PV installations
Other Points
Measures to promote the projects based on FIP program, consideration of the charge on power producers, etc.
Source: Materials of the 87th meeting of the Procurement Price Calculation Committee (October 5, 2023), compiled by RTS Corporation