Fundamental Amendment of Japan’s Renewable Energy Act

The Cabinet of Japan recently approved a bill to amend the Act on Special Measures Concerning Procurement of Renewable Energy Sourced Electricity by Electric Utilities (the “Renewable Energy Act”). The bill, to be enacted in April 2022 if approved in the Diet, will bring notable changes to the renewable energy landscape in Japan, including the introduction of a Feed-In Premium program, a mandatory requirement to reserve decommissioning costs, and a framework for the expiration of FIT certifications applicable to non-operational projects. In this newsletter, we discuss the main features of the amendments to the Renewable Energy Act and the specific implementation measures currently being discussed by the government.

＊This article is also available in Japanese.

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Authors

Amane KAWAMOTO

Partner
Tokyo

+81-3-6250-6359

Amane has extensive experience in a number of project finance transactions and acquisitions in connection with renewable energy projects in Japan and other Asian countries. In addition to his broad knowledge of the complex regulations surrounding renewable energy, he also has a deep understanding of IPP business reinforced by his work experience in London at a major Japanese trading company. His clients include domestic and international energy project developers, investors, lenders, construction contractors, and utility companies. He advises, represents, and advocates on behalf of clients in a wide range of transactions in the renewable energy sector, including development of green-field projects, debt and equity financing, selling and acquisition of energy projects, and legal due diligence. He also has a wealth of experience in offshore wind projects from the emergence of offshore wind business in Japan in the mid-2010s, including advising clients in the public tender process under the Offshore Renewable Energy Act.

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