Monthly Report

47 projects totaling 93MW awarded 6.84 yen/kWh average FIP in 20th Solar Auction

July 4, 2024
Solar Auction
In the 20th Solar Auction, 250kW and larger projects were eligible to bid for a 20-year FIP subsidy.

On July 21, the Organization for Cross-regional Coordination of Transmission Operators (OCCTO) announced the results of Japan’s 20th Solar Auction. All of the 93MW worth of feed-in-premium (FIP) projects sought in the auction was awarded. In total, 47 bids by 14 companies were successful.

The weighted average of the FIP prices awarded in the auction was 6.84 yen/kWh. SymEnergy’s Shiranuka Solar Grazing Power Plant was awarded the highest FIP price, 8.84 yen/kWh for 9.58MW project. Coincidentally, the same project was awarded a 9.19 yen/kWh FIP in the 18th Solar Auction but failed to materialize.

Kamisato Construction and Mitsubishi Clean Energy’s GEMM were awarded the lowest average FIP at 5.00 yen/kWh. While the former was awarded five projects averaging 766kW for a total of 3.83MW, the latter was awarded one 400kW project. The lowest FIP overall, however, was awarded to ENEOS Renewable Energy, which secured a 4.55 yen/kWh FIP on one of the 10 projects it was awarded.

ENEOS Renewable Energy was also the company with the most awarded projects. With the 10 projects, it secured 15.15MW at an average FIP price of 5.25 yen/kWh. Mirai Soden Gamo Hino affiliated with Sojitz Mirai Power was the company with the largest awarded project and the most awarded capacity overall. It was awarded a 19.5MW project at a 5.70 yen/kWh FIP.

Japan's 20th Solar Auction Results

Bidders were required to submit their business plans for 250kW+ solar projects for initial evaluation by May 10, 2024. Those with business plans determined to be eligible to participate in the auction were then required to submit their bids by June 14, 2024. Winning bidders are required to pay the second deposit by July 5, 2024, and obtain the projects’ certification by January 21, 2025. A failure to do so will result in the awarded projects being revoked.

Alongside announcing the 20th auction results, OCCTO also announced that it will seek to auction 106.99MW in the 21st solar auction. Companies wishing to participate in the second auction are required to submit their business plans for initial evaluation by July 12, 2024. Bids will then have to be submitted by August 16, 2024, with results announced a week later on August 23, 2024.

A detailed breakdown of the 20th Solar Auction’s results, as well as the currently known details of the next auctions can be found in the Renewable Energy Auctions module of Japan Energy Hub.

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