Insights & Analysis
A straight-to-the-point monthly summary of important regulatory discussions and changes in Japan's power market.
In the May 2026 issue:
- Summary of METI, OCCTO, and other committee meetings
- Proposed revised thresholds for solar project EIA
- Revised capacity market withdrawal penalty system proposal
- Kyushu renewable curtailment system revision
- METI power business license and registration changes
- Nuclear power plant operational status updates
- ...and more
The next issue will be released on July 15, 2026.
Enehub Charts of the Week
The full 820GWh of non-FIT renewable and 1TWh of non-FIT non-renewable NFCs offered in the third FY2025 auction were awarded, with both products clearing at the 1.3 yen/kWh ceiling. Demand exceeded supply more than threefold, extending the tight conditions that have persisted since FY2024’s third round.
Citing rising project costs, METI is proposing higher solar and onshore wind auction price ceilings in FY2026 than in FY2025. Unlike in previous years, the ministry also plans to maintain a uniform cap across all four FY2026 rounds, which are expected to be the final auctions before FIP support for new large-scale ground-mounted projects is scrapped.
Indirect transmission rights for three new line-direction pairs will become tradable on JEPX from April 2026 (June 2026 delivery): Hokkaido-Tohoku, Tohoku-Tokyo, and Chugoku-Kansai. The plan to also add Chubu-Hokuriku, Chubu-Kansai, and Hokuriku-Kansai was scrapped as a revised interconnector operation scheme is expected to minimize spreads for those pairs.
