31/10/22 15.

02 RE100 Revised the Technical Criteria, Adding 15-year Commissioning Date Limit | Column | Renewable Energy Institute

26 October 2022
RE100 Revised the Technical Criteria, Adding 15-year Commissioning Date Limit
Masaya Ishida Senior Manager, Renewable Energy Institute / RE100 Technical Advisory Group member
in Japanese
RE100, an international initiative to promote the use of renewable electricity around the world, revised its "Technical Criteria" for
renewable electricity procured by member companies on October 24 (announced five months earlier than originally planned). The new
criteria applies to electricity procured in January 2024 and beyond.
The most important revision of the new criteria is categorizing renewable electricity procurement methods by CO2 reduction effect and
stipulating that electricity must be procured from new power generation facilities, or if this is not feasible, electricity or certificates must
be purchased from facilities in operation for 15 years or shorter (grandfathered for contracts before January 2024). By specifying the
additionality emphasizing newer facilities, the program aims to encourage member companies to reduce their CO2 emissions effectively.
It is expected not only RE100 member companies but many other electricity users will select renewable energy sources meeting the
RE100 Technical Criteria to accelerate the reduction of CO2 emissions globally.

Recommending Self Generation and Corporate PPA

The new criteria categorize five types of renewable electricity procurement methods (details in Table 1).
1．Self Generation
2．Direct Procurement (Corporate PPA)
3．Contracts with Suppliers
4．Energy Attribute Certificates
5．Default Delivered (not applicable to Japan)
Table 1. Renewable Electricity Procurement Types by RE100 Technical Criteria

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31/10/22 15.02 RE100 Revised the Technical Criteria, Adding 15-year Commissioning Date Limit | Column | Renewable Energy Institute

Source: RE100 Technical Criteria, Version 4.0, October 2022

For each procurement method, requirements are specified based on the impact of the CO2 reduction effect. No restrictions are set for self
generation (Type 1) and direct procurement (Type 2), in which consumers contribute to the addition of renewable energy generation
facilities. Among direct procurement, off-site corporate PPAs supplying electricity via the grid are subject to make a long-term contract at
the start of operation of the facilities.
On the other hand, when purchasing renewable electricity from a retailer through a power supply contract (Type 3), the electricity must be
procured from a generating facility that has been in operation for 15 years or shorter. Under the new RE100 Technical Criteria, electricity
from a generating facility in operation for longer than 15 years will not be compliant. The exception is a project-specific long-term contract
for new generation facilities, same as corporate PPA, which can continue to be purchased beyond 15 years of operation. In Japan, regional
utilities sell green products providing electricity from old hydro power plants. Those products will not comply with the new criteria except
in case all the electricity comes from low-impact hydro power plants in operation within 15 years.
The same requirements apply to energy attribute certificates (Type 4). It will be restricted to certificates for power generation facilities in
operation within 15 years. In Japan, Non-Fossil Certificates (NFCs), Green Electricity Certificates (GECs), and J-Credits (renewable
generation) are available in the market. NFCs with tracking information meet the new criteria in case the operation date of the facilities is
within 15 years. GECs and J-Credits do not disclose the operation start date of the facilities and will not meet the criteria. Virtual PPAs
without Contract for Difference (CfD) are classified as Type 4 under the RE100 criteria. In such cases, long-term contracts for new power
generation facilities are complied with the new criteria in the same way as direct procurement (Type 2), and contracts can continue
beyond 15 years of operation (details in Table 2).
Table 2. Commissioning Date Regulations and Options in Japan by Procurement Type
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31/10/22 15.02 RE100 Revised the Technical Criteria, Adding 15-year Commissioning Date Limit | Column | Renewable Energy Institute

Source: RE100 Technical Criteria, Version 4.0, October 2022

RE100 member companies are required to apply the new criteria for renewable electricity procured on and after January 1, 2024. As a
grandfathering, up to 15% of the annual electricity usage, member companies can use electricity or certificates that do not meet the
requirements within 15 years of operation. However, those procurements should be reduced as soon as possible.
The RE100 Technical Criteria specify renewable electricity based on its CO2 reduction impact and will serve as a guideline for
organizations promoting decarbonization. The more power generation facilities meet the criteria, the less electricity from thermal power
generation supplies to reduce CO2 emissions for the entire region. Companies and local governments around the world have a major role
in mitigating climate change through the procurement of renewable electricity.

Biomass and Hydro Should be Sustainable

In addition, stricter criteria are stipulated for energy sources of power generation. While there are no restrictions on wind, solar and
geothermal, the RE100 technical criteria specify that biomass (including biogas) and hydropower be limited to sustainable sources. It
recommends power generation methods and fuels should be proven through certification by third-party organizations such as the
International Organization for Standardization. Hydropower should be environmentally low impact certified by NGOs or other third-party
organizations. RE100 will continue taking environmental and social sustainability into account and considering new requirements for
biomass and hydropower.
With respect to energy sources, hydrogen is excluded. RE100 considers hydrogen as an energy carrier (means of energy transmission), not
an energy source. The type of energy source producing hydrogen determines whether it meets the criteria. Currently, hydrogen produced
from wind, solar, geothermal, sustainable biomass and hydro meet the criteria. Similarly, energy storage such as batteries are not
considered as energy sources and the energy source of the electricity to be stored is the determining factor.

<Reference>
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31/10/22 15.02 RE100 Revised the Technical Criteria, Adding 15-year Commissioning Date Limit | Column | Renewable Energy Institute

1) RE100 Technical Criteria, Version 4.0 October 2022, RE100

2) Electricity Certificate for Renewables April 2022, Renewable Energy Institute

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