JAPAN Law and Practice Contributed by: Rintaro Hirano, Yutaro Fujimoto, Yurika Masakane and Yutaro Kato, Nagashima Ohno & Tsunematsu
3.5 Decommissioning a Generation Facility If an operator of an Electricity Generation Busi- ness intends to suspend or terminate the whole of its generation business, it must submit a noti- fication to METI in advance (as described in 1.7 Announcements Regarding New Policies , the 2023 Amendment introduced the prior filling obligation for the abolition of certain generation facilities). In addition, if the operator decommis- sions a generation facility that has an installed capacity of 100 MW or more, such operator must also submit a notification in advance to OCCTO in accordance with the Network Codes. With respect to a nuclear power plant, the opera- tor must prepare a decommissioning plan and obtain approval from the NRA for the plan under the Act on the Regulation of Nuclear Source Material, Nuclear Fuel Material and Reactors. Further, in response to public concern about ille- gal abandonment of solar power plant facilities, under the Renewable Energy Special Measures Act, operators are required to establish a man- datory reserve to cover decommissioning costs for those facilities subject to the FIT Regime or the FIP Regime. Moreover, in order to promote the recycling of solar panels, the introduction of a comprehen- sive system for recycling solar panels is being considered. Under this system, manufacturers or importers of solar panels will be obliged to contribute to funds to be established to cover the costs of recycling, from which operators will then be able to access funds as necessary and/ or appropriate for recycling activities. With regard to offshore wind power generation facilities subject to the Offshore Wind Promotion Act, measures to ensure decommissioning costs
to do the following, pursuant to the Electricity Business Act and its delegated legislation: • supply electricity as directed by the trans- mission and distribution network operators so that the demand and supply of electricity within the network will be balanced; • supply electricity in accordance with orders that METI may issue in the case of an emer- gency (such orders have never been issued to date); • prepare and submit a supply plan to OCCTO; • submit its financial statements to METI; • submit a report on its performance and operation results to METI; and • comply with the Network Codes of OCCTO. 3.4 Eminent Domain, Condemnation and Expropriation Rights to Construct and Operate Generation Facilities The Expropriation of Land Act (Act No 219 of 1951, as amended) empowers an operator of electricity business under the Electricity Busi- ness Act to expropriate a piece of land for its business in exchange for paying just compensa- tion to the land right-holder, following the pro- cedures set out in the Electricity Business Act. In order to expropriate land, the operator must first obtain approval from the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) and/ or the relevant local government, as the case may be, on any undertaking that necessitates expropriation. After obtaining such approval, the operator files for expropriation with the Expro- priation Committee of the MLIT, which will grant the operator an award of expropriation unless the undertaking is found to be materially differ- ent, or materially differently implemented, than as explained to the MLIT and/or the relevant local government.
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