From fixed to variable Renewable energy purchase price review bill Cabinet decision February 25 10:21

A bill was decided by a cabinet meeting on May 25 to review a system whereby a major power company buys electricity at a fixed price from renewable energy companies such as so-called mega solar, and introduce a mechanism to reflect market price movements.

The bill stipulates that a major power company should review the current system of purchasing electricity from renewable energy at a fixed price and introduce a new system.

Under the new scheme, renewable energy power producers will sell the generated electricity at a price that fluctuates depending on the supply and demand situation through the trading market.

Under the current system, the burden of purchasing renewable energy is over 9000 yen per year for standard households, and the government wants to reduce the burden by introducing a system that reflects market prices.

The target is operators of so-called mega solar and wind power, and fixed-price systems for solar power generation for home use are maintained.

The government aims to pass a bill in the current ordinary Diet.