JCLP urges the Japanese government to further reform the electricity market



JCLP urges the Japanese government to further reform the electricity market
so that consumers can procure renewable energy economically and promptly



Tokyo, Japan, July 26 2022 –Japan Climate Leaders’ Partnership (JCLP), a coalition of 215 companies committed to climate action, has released the “Statement on Ensuring Diversity of Renewable Energy Options”. The statement was submitted to the relevant ministries of Japan.


JCLP is working in the field of renewable energy in order to overcome the climate crisis, achieve a rapid transition to a decarbonized society, and ensure that the 1.5°C target is met.


In this statement, we request that the overall health of the electricity market is maintained, the market environment is improved to promote the expansion of renewable energy, and the diversification of new renewable energy options are vigorously promoted in order to expand consumers’ procurement of renewable energy, and express our opinions as follows:


Recognition of issues as consumers:


 1.  JCLP is concerned that the price competition that has been promoted by the full liberalization of electricity retailing is stagnating and that the diverse options for renewable energy could be reduced while the government’s power system reform is underway.


 2.  The new renewable energy option, virtual PPA, is difficult due to regulatory and institutional challenges.


Opinions on ensuring diversity of renewable energy options based on recognition of the above issues:


 1.  In order to procure renewable energy economically and promptly, we seek to develop a market environment that allows us to enjoy a variety of options in the rapid expansion of renewable energy that is currently required.


 2.  JCLP seeks to create an environment that facilitates the establishment of virtual PPA schemes. Specifically, we request that the following measures be taken:

   ♦  We request deregulation to ensure that virtual PPAs are not subject to the Commodity Derivatives Transaction Act.

   ♦ We request that direct trading of non-fossil certificates be made possible for a wide range of power sources.


Download the full statement here.

Download the press release here.