Japan Eyes New System to Support Carbon-Free Energy Investments

Tokyo, Nov. 11 (Jiji Press)–Japan’s industry ministry plans to establish a new system to allow public bodies to provide loans for power companies’ investment plans regarding solar and other carbon-free energy sources and power grids, it was learned Tuesday. The ministry hopes to launch the system as early as fiscal 2026 by revising related laws and ordinances, including the Electricity Business Law. Under the new system, the state-backed Organization for Cross-regional Coordination of Transmission Operators, or the OCCTO, will be in charge of lending, while the ministry will screen loan applications. The OCCTO is expected to provide joint loans with private financial institutions. To meet decarbonization goals and rising electricity demand, power companies are required to make large investments to expand carbon-free energy sources, such as nuclear and solar energy, and strengthen power grids. The new government-backed loan system is expected to attract additional private capital. END [Copyright The Jiji Press, Ltd.]