Act on Purchase of Renewable Energy Sourced Electricity by Electric Utilities (Law No. 108 of 2011)

This Act obliges electric utilities to purchase electricity generated from renewable energy sources (solar PV, wind power, hydraulic power, geothermal and biomass) based on a fixed-period contract with a fixed price. Costs incurred by the utility in purchasing renewable energy sourced electricity shall be transferred to all electricity customers, who pay the “surcharge for renewable energy” in general proportional to electricity usage. Utility companies users that had been severely affected by the 2011 tsunami and earthquakes are exempted.

A committee to calculate purchasing price is established under this law, which consists of 5 members with expertise in electricity business and economy, appointed by the Minister of Economy, Trade and Industry upon approval of both chambers of the Parliament.

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