The final results of the latest auction for solar energy projects with a power rating of more than 250 kW have been revealed by Japan’s Green Investment Promotion Organization.
Reportedly, the procurement activity, which was the eleventh of the country’s utility-scale solar auction schemes and would be the last exercise providing fixed rates, picked 273 PV projects with a combined capacity of 268.7 MW. Feed-in premium tariffs will be granted to developers starting with the next auction. The lowest bid in the auction was ¥8.99 per kWh, and the average final price offered was ¥9.99 per kWh. The ceiling price was established at ¥10.25 per kWh.
The Japanese government planned to implement 345 project proposals with a total capacity of 278.5 MW. The agency emphasised that this is the first time the minimum price has surpassed the ¥9 threshold. However, total solar capacity was lower than in the tenth auction, when around 340 MW was given and the lowest offer reached ¥10.23 per kWh.
In February 2022, Mitsubishi Power, a Japanese power company, had been planning to build the Takasago Hydrogen Park in Hyogo Prefecture. The hydrogen park, which would be located within MHI’s Takasago Machinery Works plant, will be the first verification centre for hydrogen-related technologies ranging from hydrogen production to power generation.
REGlobal’s Views: Japan is a fast-growing solar power market and auctions are a transparent mechanism to attract private investments in this space. However, the country needs to address its land related and grid concerns to ensure streamlined renewable energy development.