FIT non-fossil certificate price hike To increase the value of additional renewable energy
The minimum price of FIT non-fossil certificates traded on the renewable energy value trading market will be raised by 0.1 yen. On the other hand, it seems likely that the rules will be revised in the direction of making tracking information for renewable energy sources available for a fee and evaluating “additionality”. (This magazine, Narumi Nakama)
According to the Energy Supply Structure Sophistication Act, electric power retailers must increase the ratio of non-fossil power sources to 44% of their electric power sales by 2030. On the other hand, the number of member companies of "RE100" which aims at 100% renewable energy for business electricity has increased against the background of the trend of decarbonization. Therefore, there is a "sophistication law obligation fulfillment market" where electric power retailers purchase non-fossil certificates for the purpose of fulfilling their obligations under the law, and a "renewable energy value trading market" where companies procure certificates for the realization of RE100. was created and traded in deeds.
The minimum price is set for the certificate, and the non-FIT non-fossil certificate traded in the Sophistication Act Obligation Market is set at 0.6 yen per kWh, and the FIT non-fossil certificate in the renewable energy value trading market is set at 0.3 yen. However, the FIT non-fossil certificate has recently been raised to 0.4 yen from the first auction in FY2011.
However, in the renewable energy value trading market where FIT non-fossil certificates are traded, the Low Carbon Investment Promotion Agency is the certificate seller, and the proceeds from the sale of the certificates are used to reduce the FIT surcharge. Moreover, since the renewable energy value trading market was established in 2010, the number of buyers has gradually increased. Therefore, the government seems to have raised the minimum price of FIT non-fossil certificates with a view to reducing the surcharge.
Masaya Ishida, senior manager of the Renewable Energy Institute, said, "With electricity prices skyrocketing, companies prefer to procure renewable electricity through PPAs (power purchase agreements) rather than purchasing certificates and realizing renewable energy. There are merits. Raising the minimum price is likely to work in the direction of pushing up PPA demand."
Pay for tracking
On the other hand, it seems that the consideration of charging for tracking is also progressing. In the first place, if the location of the renewable energy power source is not attached to the FIT non-fossil certificate as tracking information, it is not considered to have actually procured renewable energy power. Currently, the purchaser of the certificate only needs to add the attribute information of the power source after the fact, and there is no difference in the value of the power source attribute. In fact, in October 2010, the RE100 renewable energy procurement standards were revised, and after January 2012, power generated from renewable energy sources within 15 years of operation will no longer be recognized as “renewable energy.” Along with this, tracking information will also have value, so it is being considered to make it a paid service.
It is hoped that the system will be adapted to the RE100 15-year rule at an early stage.
