To encourage new investment in renewable electricity generation facilities and promote the use of renewable electric energy, in late August the Japanese Diet passed The Act on Special Measures concerning the Procurement of Renewable Electric Energy by Operators of Electric Utilities (the “Act”). Under the Act, Japanese electric utility operators are obligated to purchase solar, wind, hydro, geothermal and biomass generated electricity for contractual terms and at prices to be fixed by the Minister of Economy, Trade and Industry (“METI”).

This Client Alert summarizes the key features of the Act.