
At the end of last month, the Japan Electric Power Exchange (JEPX) announced the FY2024 non-fossil certificate (NFC) auction schedule.
Four auction rounds will be held between August 22, 2024, and May 23, 2025, during which the NFCs associated with the power generated during calendar 2024 (January 1 to December 31, 2024) will be sold.
During each auction round, three categories of NFCs will be auctioned off. Each round, non-FIT non-fossil NFCs from, for example, nuclear power plants, will be processed first, followed by non-FIT renewable NFCs from solar, wind, and other renewable assets not under the feed-in-tariff (FIT) scheme, and finally FIT NFCs from assets operated under the FIT scheme.

While the first two categories of NFCs are sold by power generators, the FIT NFCs are sold through by the the Organization for Cross-regional Coordination of Transmission Operators (OCCTO). The last category is also the largest given that FIT NFCs cannot be bought through bilateral trades and that the vast majority of renewable assets in Japan is still under the FIT scheme.
In the FY2023 auctions, 47.22TWh of NFCs was sold. FIT NFCs accounted for 71.7% of the sold volume. You can find a detailed breakdown of the results, as well as more details about the different NFC categories in our free research brief covering the FY2023 NFC auctions.