- In the fifth solar PV auction round, Japan has contracted 27 projects with a cumulative capacity of 39.8 MW
- Under the auction, lowest bid offered was JPY 10.99 per kWh, as against the cap of JPY 13.00 per kWh
- 27 projects made the cut out of 72 bids shortlisted representing 185.6 MW capacity
- Originally METI had offered 416.19 MW to be won under the fifth auction round
Japan’s Ministry of Economy, Trade and Industry (METI) has selected a total of 27 solar power projects with a cumulative capacity of 39.81 MW as winners in the fifth round of solar auctions concluded in the country for solar power systems with 500 kW or more capacity. While the weighted average bid level was JPY 12.57 per kWh, the lowest winning bid was JPY 10.99 ($0.10) per kWh for this round.
The actual power amount offered in this tender was 416.19 MW and bids were capped at JPY 13.00 ($0.12) per kWh. In response, METI said it selected 72 bids representing 185.6 MW of total capacity to be considered. Eventually, 27 projects made the cut. The list of successful projects is available on METI’s website.
In the fourth solar PV auction concluded in September 2019, Japan awarded 195.8 MW capacity for JPY 10.50 ($0.096) per kWh as lowest bid, according to the International Energy Agency (IEA). Canadian Solar was one of the winners in this round securing 30 MW capacity (see Canadian Solar Secured 30 MW Solar In Japan Auction). The third auction round completed in December 2018 resulted in a lowest bid of JPY 14.25 ($0.13) per kWh with 196.96 MW capacity contracted. Before that, the second solar PV auction discovered JPY 16.47 ($0.15) per kWh as the lowest bid. However, the IEA website shows the second PV auction in Japan resulted into zero MW awarded.
Japan’s first solar auction in November 2017 attracted a lowest bid of JPY 17.2 ($0.16) per kWh which was way above what was determined in solar auctions across the world back then, and awarded 141.366 MW to the winners. The minimum project capacity under first, second and third auctions was 2 MW and was reduced to 500 kW from fourth auction round.
According to the International Renewable Energy Agency (IRENA), till the end of 2018 Japan’s cumulative installed renewable energy capacity was 90.38 GW, of which solar’s share was 55.5 GW. Japan’s official target is 64 GW solar by the end of 2020 that the government has been targeting for 2030, said local consultancy RTS Corporation that believes the country has the potential for 150 GW to be installed by 2030 (see 150 GW Solar PV By 2030 Possible For Japan).