A total of 25 virtual corporate PPAs was concluded through the first three auctions held on RE Bridge over the last year, the corporate PPA matching platform’s operator Digital Grid disclosed.
In the first auction, held between September 25 and October 20, 2023, only one 0.5MWDC project of the 52 projects totaling 98MWDC was matched with an offtaker. Eighteen generators participated, seeking prices ranging between 14 and 20 yen/kWh, with the average sought by generators being 15.4 yen/kWh and the median 15.0 yen/kWh.
In both the second auction held between March 4 and 29, 2024, and the third auction held between July 8 and August 9, 2024, 12 projects totaling 92MWDC were matched with offtakers.
By the time of the second auction, there were 80 projects by 24 generators participating on RE Bridge alongside 21 offtakers. In the third auction, the numbers grew to 38 generators, 103 projects, and 27 offtakers.
The generators sought between 13 and 20 yen/kWh in the second auction with both the average and median being 15.5 yen/kWh. In the third auction, the lower end of the range decreased to 12.5 yen/kWh, the average to 14.7 yen/kWh, and the median to 14.5 yen/kWh. The maximum price sought remained at 20 yen/kWh.
Except for the first auction, the 7.67MWDC average PPA size was more than double the average size of the available projects, which was 2.88MWDC in the first auction and 2.51MWDC in the second.
Digital Grid will plans to hold the fourth PPA auction on its platform between October and November 2024. In addition to PPAs, the disclosed ones of which can be found in the Japan Energy Hub PPA database, the company is also involved in helping companies like Daihatsu Diesel and Prologis with self-wheeling arrangements.
Expecting a growth in trading volume, Digital Grid recently arranged 10.6 billion yen in credit facilities to have sufficient working capital.
