JP Amended Energy Conservation Act — Non-Fossil Energy Conversion and Demand Optimization System

Manufacturers and other companies operating large business sites need to formulate a decarbonization plan for the electricity and heat energy they use at their factories, and to systematically pursue renewable electricity procurement, such as power purchase agreements or on-site solar, and fuel switching, such as moving from city gas to hydrogen. Businesses that make insufficient progress risk being downgraded under the SABC evaluation system (to a B or C rating), which can result in public disclosure of the company's name and corrective guidance or recommendations. Failing to shift electricity demand in response to surplus (daytime) or tight (evening or peak winter) conditions on the grid also carries a direct risk of higher future electricity costs and carbon cost burdens.