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METI presents direction on measures to promote installation of storage batteries and to aggregate small-scale projects to promote FIP

2022.08.20
Regulations/Initiatives
Japan Solar Update:  No.14   (August 15-19, 2022) 

The Ministry of Economy, Trade and Industry (METI) has presented direction of measures for promoting installation of storage batteries, aggregation of small-scale projects, and additional investment/reinvestment, etc., in order to supply renewable energy according to supply and demand and to maximize the use of existing renewable energy. In order to promote the transition from the FIT program to the FIP program, revision of the rules for price changes for retrofit installation of storage batteries has been proposed.

 

Specifically, if the total output capacity of PV modules exceeds that of inverters, the price* is planned to be changed to the weighted average of the output capacity of the generation facilities and standard price of the inverters. Regarding the aggregation of small-scale projects, it was proposed to make low-voltage PV systems to be subject to the FIP program. It is planned to require certain conditions to encourage collaboration with electricity retailers and aggregators, and to make the FIP program optional in addition to the FIT program for new and already approved low-voltage PV projects.

 

Regarding additional investment/reinvestment, a review of the current rules** was proposed regarding price changes when increasing PV module capacity. It is planned to maintain the current price for the initial facilities and apply a sufficiently low price (e.g., below the latest price) for the increased output capacity when PV modules are replaced or added. Based on these plans, the Procurement Price Calculation Committee plans to discuss the details at the future meetings. In addition, the importance of providing more information on the certified PV power producers in order to support the matching process was pointed out.

 

* Image of price calculation for a case where storage batteries are installed in a FIT-approved facility with a FIT purchase price of 20 Yen/kWh (15 cents/kWh), inverter capacity of 100kW and a total PV module capacity of 120kW, and the facility shifts to the FIP program ((20 Yen/kWh x 100) + (10 Yen/kWh x 20)) / 120 = 18.33 Yen/kWh (13.7 cents/kWh) For newly approved projects in and after FY 2022, retrofit installation of storage batteries is allowed without price changes under the FIP program. ** Change the entire facility to the latest purchase price and standard price in the event of an increase (3 kW or more or 3% or more) or decrease (20% or more) in PV module capacity.

 

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