Japan awards 208MW in oversubscribed eighth solar auction

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on reddit
Reddit
Share on email
Email
The 35MWp Isohara solar farm in Japan. Image: BayWa r.e.

Japan’s eighth solar auction, for projects with a generation capacity of more than 250kW, has closed with bidders securing a total of 208MW.

The oversubscribed auction included 185 bids, representing a total capacity of 249MW. The 135 successful bids had a weighted average of JPY10.82/kWh (US$0.0979/kWh), with the lowest winning bid at JPY10/kWh (US$0.09048).

That bid is the same as the lowest bid in Japan’s sixth auction last November and down 4.6% on the minimum bid seen in the country’s seventh solar auction, which took place in December and allocated 69MW.

Project developer and PV module manufacturer Canadian Solar announced itself as one of the winners in the latest tender, winning 86MWp of capacity that includes one project of 80MWp and two of 3MWp that will be developed in the Tohoku region.

Those projects are expected to reach commercial operation between 2024-2026 and once constructed will enter into a 20-year power purchase agreement with Tohoku Power Electric Company.

Having carried out its first solar auction in 2017, Japan has so far awarded approximately 1,219MW of capacity through the eight rounds of its solar tender programme.

According to a recent report from the International Renewable Energy Agency, a challenge for Japanese authorities has been retaining qualified bidders, with developers indicating that constraints regarding grid connection and land availability, as well as bond confiscation rules, reduced their interest in placing bids.

Indeed, in the country’s fifth solar auction, despite more than 416MW initially on offer, the country awarded just 40MW of capacity.

Figures from RTS Corporation reveal that Japan deployed around 8GW of solar last year, taking its cumulative installs up to around 70GW. Modelling from the Tokyo-headquartered analysis firm suggests that a business-as-usual scenario would see the country achieve around 130GW of installed solar by 2030 and under an ‘accelerated scenario’ could reach 160GW.

Read Next

July 27, 2021
Canadian Solar has closed a BRL500 million (US$100 million) financing facility to develop a Brazilian solar portfolio claimed to be the country’s largest, while also giving it the option to hold built solar assets for longer.
July 27, 2021
A round-up of the latest news from the US solar market, featuring Vision Solar’s commitment to hire “hundreds” of sales staff as part of a two-state expansion, Recurrent Energy’s sale of two major assets in Texas and news of 8minute Solar Energy strengthening its legal team.
July 19, 2021
Merchant solar and projects backed by power purchase agreements (PPAs) drove ground-mounted PV deployment in Spain last year, as the country installed its second-highest yearly amount of 2.8GWp, new figures from trade association UNEF reveal.
July 13, 2021
Solar PV capacity in Asia Pacific could triple to 1,500GW by 2030, with China driving deployment and Indonesia set to be the region’s fastest-growing market, according to Wood Mackenzie.
PV Tech Premium
July 9, 2021
Solar’s dominance in recent renewables auctions in Poland has further reinforced the promising outlook for the market, with developers and analysts welcoming support provided for the construction of smaller projects.
July 8, 2021
While the Asian solar industry has been hit by COVID-19 fueled disruption, the pandemic has also boosted interest from offtakers, industries and governments alike.

Subscribe to Newsletter

Upcoming Events

Upcoming Webinars
August 19, 2021
At 9am (PT) | 6pm (CEST)
Solar Media Events
August 25, 2021
Solar Media Events
October 6, 2021
Solar Media Events
October 19, 2021
BRISTOL, UK