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eREX completes FIT to FIP switch of Tosa Power Plant

eREX completes FIT to FIP switch of Tosa Power Plant
The eREX New Energy 20 MWe biomass-fired Tosa Power Plant in Tosa City, Kochi Prefecture (photo courtesy eREX).

In Japan, international power utility and retailer eREX Co. Ltd has announced that its subsidiary eREX New Energy Co., Ltd., has successfully completed a switch of its Tosa Power Plant, from the Feed-in Tariff (FIT) system to the Feed-in Premium (FIP) system.

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eREX New Energy has received approval and certification from the Ministry of Economy, Trade, and Industry (METI) for switching its 20 MWe biomass-fired Tosa Power Plant in Tosa City, Kochi Prefecture, from the Feed-in Tariff (FIT) scheme to the Feed-in Premium (FIP) scheme.

Under the FIT, renewable power prices were set by the government at a fixed rate for a certain period of time. With the FIP, a certain premium is added to the selling price of electric power sold on the wholesale market by renewable energy power generators.

This is the first time that the Company’s group has gone through procedures to switch from the FIT system to the FIP system, and the Tosa facility is one of the first biomass power plants to adopt the FIP system.

eREX New Energy has as of the end of January 2023, six power plants in Japan, including those under development, in the renewable energy business.

According to the Company, it remains to be seen if additional facilities will make the switch, and it will use the Tosa facility “to accumulate achievements and experience in operating under the FIP system.”

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