In Japan, corporate power purchase agreements (Corporate PPAs) have recently come under the spotlight. Since the introduction of the Japanese feed-in tariff (FIT) regime in 2012, renewable power generators have been relying on attractive, 20-year, fixed price PPAs. Now, as the number of new FIT-based PPAs dwindles while demand for "clean" energy from corporate and industrial power consumers in Japan increases, the market for Corporate PPAs in Japan is expected to expand rapidly.
Despite its potential, this market is still in its infancy, however. In this briefing we outline the unique aspects of the Japanese Corporate PPAs market from a regulatory perspective and draw some comparisons based on our experience with the development of the Corporate PPAs market in other jurisdictions.