[Column] [ESG Strategies for Business] Vol.37 Launch of the New 250 MW FiT Quota—FiT 2.0 Bidding Requirements and Entry Opportunities for Japanese Companies

The article titled “[ESG Strategies for Business] Vol.37 Launch of the New 250 MW FiT Quota—FiT 2.0 Bidding Requirements and Entry Opportunities for Japanese Companies”, contributed by Attorney Mitsuru Misawa, has been published in the Jiji Press Malaysia Edition (issued on October 28, 2026).

While the previous issue examined the mandatory Extended Producer Responsibility (EPR) for packaging and single-use plastic regulations, this issue continues in the environmental (E) domain, addressing the new 250 MW Feed-in Tariff (FiT) quota announced by the Ministry of Energy Transition and Water Transformation (PETRA) in September 2026, and outlining the entry requirements and key considerations for Japanese companies. It covers the breakdown of the quota among biogas, biomass and small hydro, the two-tier tariff structure under which a base rate applies for the first 10 years and the rate for the remaining 11 years is determined by bidding, the requirement limiting foreign shareholding to 49% or less (including indirect holdings), the fuel ownership requirement for biomass, the requirements for paid-up capital, financial capability and track record together with the lock-in period for the shareholding structure, the application window from February 3 to March 24, 2027, and practical issues for Japanese companies such as structuring the investment, securing feedstock, and water rights and environmental impact assessments for small hydro.

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