The first I-REC(E) have been issued in Japan and the issuance criteria have been expanded
The first I-REC(E) have been issued in Japan by the accredited I-REC(E) Issuer, Local Good. These issuances were from three devices using three different energy sources, including wind and solar. This is a great step towards further use of I-REC(E) in Japan and great news for end-users in Japan who are interested in purchasing I-REC(E) for the reporting of their electricity consumption.
The Japanese regulatory framework is complex and to guarantee the robust functioning of I-REC(E) alongside national systems, Local Good has had to implement restrictive issuance criteria such as not allowing the issuance of I-REC(E) for devices receiving a FiT, and therefore, automatically the FiT NFC. However, following recent conversations with Japanese stakeholders, including the Ministry of Economy, Trade, and Industry (METI), some of the restrictive issuance criteria are now loosened.
In addition to the issuance of I-REC(E) within the previous restrictive criteria, METI has shown support for the issuance of I-REC(E) for all bilateral contracts of FiT-supported facilities, given that an end-user must collect a FiT NFC and I-REC(E) in order to make a reliable claim. FiT NFCs do not carry specific information such as the location of the plant and as such, the I-REC(E) can now support the FiT NFC in conveying such information about the specific MWh to the end-consumer while avoiding double counting by forcing the redemption of the I-REC(E) and the FiT NFC for one claim.
More details of this change were published in the November 14 edition of the national newspapers Nikkei and PR Times following the approval of the content of these articles by METI. The articles can be seen here and here.
For more information on I-RECs in Japan, please contact the I-REC Standard secretariat at email@example.com.