The Ministry of Economy, Trade and Industry (METI) of Japan has awarded 27 bids for a total capacity of 39.8 MW in its fifth solar auction for projects of 500 kW capacity or more. Initially, more than 416 MW was offered in the auction, and the METI had accepted 72 initial projects proposals with a total capacity of 185.6 MW. The ceiling price was set at JPY13/kWh (US$11.9c/kWh). The lowest offered price reached JPY10.99 (US$10.07c/kWh) and the weighted average bid price stood at JPY12.57/kWh (US$11.5c/kWh).
The mild interest in solar auctions reflects the decline in solar feed-in tariffs (FITs), which have been cut every year since 2013 and may be phased out gradually. Yet, rooftop and distributed solar installations are following a rising trend, along with residential energy storage.
In the government’s latest Energy White Paper, approved in July 2019, renewables are recognised as a major energy source for Japan’s future. The plan aims to raise the share of renewables in the power mix to 22- 24% (including hydropower) in 2030, with the objective to make renewables Japan’s main power source by 2050.
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