Japan Solar Update: No.122 (Nov 11 ~ 15, 2024)
<Key points>
- In order to further promote FIP power sources, a total of eight countermeasures were proposed, including further disclosure of information in the Feed-in Premium (FIP) program, expansion of grid charging for storage batteries annexed to renewable energy generation facilities, review of price calculation rules for retrofit storage battery installations, and temporary increase in balancing costs
- The Japan Photovoltaic Energy Association (JPEA) said that it would like to take this policy measure seriously as an industry and would like to compile a roadmap and action plan, and requested for a review of the reference price calculation formula and the handling of power storage facilities installed away from FIP power sources in order to further promote the FIP program
Further promotion of FIP power sources which contribute to ensuring the balance of supply and demand
(1) Establishment of a business environment to promote smooth implementation of projects
| ➀ Promotion of further disclosure of information in the FIP program |
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| ➁ Expansion of grid charging of storage batteries annexed to FIP power sources | In addition to FIP power sources newly approved in FY 2024 or later, FIP power sources approved before FY 2023 (including those that have transitioned from the FIT program to the FIP program) will also be able to grid-charge the storage batteries annexed to renewable energy generation systems |
| ➂ Price calculation rule for retrofit installation of storage batteries for the projects transitioned to the FIP program |
Revision of the current price calculation rules*, and calculation using the assumed value of the peak-cut power ratio that is technically calculated in accordance with the actual situation according to the over-panelling ratio * There are no entities applied to this role as of the end of August 2024 |
| ➃ Smoother shifting to power supply of FIP power source | Measures to change the output curtailment order from the FIT power sources to the FIP, non-FIT /non-FIP power sources are expected to have the effect of reducing the burden on the public. While trying to curb the burden on the public as a whole, a further temporary increase in balancing costs will be considered, and the target of the measures, the period of the measures, and the amount to be provided will be discussed at the Procurement Price Calculation Committee |
| ➄ Expansion of direct trading of non-fossil certificate | In the case of a FIT power source that started operation before FY 2021 which was shifted to a FIP power source, the Working group for reviewing the scheme examines how direct transactions between power producers and consumers should be |
(2) Revitalization of the aggregation business, etc.
JPEA
- JPEA takes this very seriously as the PV industry and would like to compile a roadmap and action plan, etc.
- It requests for a review of the reference price calculation formula for the FIP program, and the treatment of energy storage facilities installed in places away from FIP power sources in the same way as storage batteries annexed to renewable energy generation systems on the premise of strict tracking and so on
Figure 1 Further promotion of FIP power sources which contribute to ensuring the supply and demand balance
Source: Materials from the 69th meeting of the Subcommittee for Large-volume Introduction of Renewable Energy and Next Generation Electricity Network (September 30, 2024), compiled by RTS Corporation