High Demand In 16th Japanese Solar Auction

• The 16^th solar auction round in Japan has concluded with 119.7 MW being awarded, against 105 MW offered
• Lowest winning bid was JPY 9.50/kWh and average weighted was JPY 9.34/kWh
• OCCTO plans to hold the 17^th solar auction round within 2023, in which it plans to offer 110.8 MW capacity

The Organization for Cross-regional Coordination of Transmission Operators (OCCTO) in Japan recently announced the results of its 16^th solar auction round, awarding 119.7 MW to 20 projects as against 105 MW offered for solar systems between 250 kW to 500 kW range, and those above 500 kW capacity.

Bids were capped at JPY 9.50/kWh, but it determined lowest winning bid of JPY 9.00/kWh and highest of JPY 9.49/kWh. Average weighted bid was JPY 9.34/kWh in this round.

Previously, OCCTO selected only 9 projects for 16.2 MW capacity as against 175 MW offered in the 15^th auction round. The lowest, highest and average winning bids were discovered as JPY 9.48/kWh, JPY 9.63/kWh, and JPY 9.56/kWh, respectively.

The 14^th auction round had 175 MW on offer for feed-in-premium (FIP) category with a JPY 9.75/kWh tariff cap, but OCCTO declared 137.2 MW as the winning capacity with lowest winning bid of JPY 9.65/kWh and highest price of JPY 9.75/kWh. Weighted average was JPY 9.73/kWh. Under feed-in-tariff (FIT) category for this auction round, it offered 50 MW and awarded 11.3 MW.

Previously, the 13^th auction round was also undersubscribed with 26.2 MW awarded as against 225 MW offered (see Japan's 13^th Solar PV Auction Undersubscribed).

The agency has also announced its next bidding round which will be the 17^th solar auction, to be held in 2023. Bidding amount is 110.8 MW.