A panel at Japan's Ministry of Economy, Trade and Industry (METI) on Friday decided to impose stricter rules on entities looking to sell renewable electricity under the country's feed-in tariff (FiT) programme, The Japan Times reported.
Under the decision, applicants who have not signed grid connection contracts will not be certified for the programme. At present, there are over 700,000 certified solar projects that have not started production yet with some delaying installation intentionally, waiting for a drop in costs, according to the article.
The requirements also call for regular maintenance of facilities and envision ending the certification in case of not meeting the new rules.
The move is designed to ensure that only stable power suppliers are eligible for the incentive. It is part of the ministry's efforts to review the FiT programme as it seeks to balance the interests of consumers and the need to stimulate renewables generation. Under the programme, major utilities are required to buy electricity from renewable sources at fixed prices with the costs being passed onto customers. The panel targets drawing up plans for FiT reforms by the end of the year, according to the article.
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