Japan Solar Update: No.33 (Feb 20~24, 2023)
<Key points 1>
- The revised Energy Conservation Act is scheduled to become effective on April 1, 2023. Major revisions include the following: (1) expansion of the targets of rational use; (2) conversion to non-fossil fuel energy and (3) optimization of electricity demand
- In addition to setting benchmarks of quantitative targets for conversion to non-fossil fuel energy in five major industries, consumers’ efforts to expand non-fossil fuel power sources will be more widely evaluated (private power generation, procurement of renewable energy through PPAs).
Major revisions The revised Energy Conservation Act Effective on April, 2023
1)Expansion of the targets of rational use
[Revision of the definition of energy]
The revision of the framework to require rationalization of all energy use, including non-fossil fuel energy, etc.
(2) Conversion to non-fossil fuel energy
[New stipulation]
Submission of periodic reports on medium to long-term plans for conversion to non-fossil fuel energy and status of non-fossil fuel energy use, etc. will be required for businesses with annual energy consumption of 1,500 kl or more (specified business operators).
Benchmarks of quantitative targets are set for conversion to non-fossil fuel energy in five major industries
Other industries: Target ratio of non-fossil fuel energy to total electricity consumption, including private power generation, should be set, planned and reported.
Efforts by consumers to expand non-fossil fuel energy sources will be widely evaluated (private power generation, procurement of renewable energy through PPAs).
→ Evaluated by the actual amount of non-fossil fuel energy x 1.2
(3) Optimization of electricity demand [Review of electricity demand leveling provisions]
Evaluation of demand response (DR) performance
Incentives will be considered hereafter, such as announcement of excellent operators or preferential treatment in subsidies based on the reports on the number of DR implementations, etc.
Evaluation in electricity demand optimization evaluation intensity
By applying the renewable energy coefficient, the MJ/kWh coefficient will be set lower during output curtailment of renewable energy and the coefficient will be set higher when supply and demand are tight.
Figure 1 Summary of the revised Energy Conservation Act Source: Materials of the Working Group on the judgment criteria for factories, etc. under the Energy Efficiency and Conservation Subcommittee, compiled by RTS Corporation