- Published on Dec 21, 2018 in Japan
FIT Price in solar power is going to be around 14 yen as a result of the third solar auction.
For 2MW solar power plants only, there was a third solar auction for determining the purchasing price of electricity made with solar power, and the result is now open in public. The stop-out price is 14.25 JPY.
On Dec 18, 2018, GIO (Green Investment Promotion organization) revealed the result of a third solar auction. The number of successful bids was seven in total.
Since 2017, regarding the solar power, Japan introduced the solar auction on determining the purchasing price of electricity based on FIT system. The solar power plants put in bid is limited to 2MW-scale plants only.
Since the second auction, the maximum price of the bid has not been open to public; it is opened to public after the bid is done. There was not any successful bid in the second solar auction.
The maximum bid price this time was 15.50 yen/kWh. The number of the submit items was 38, and of all those 38 items, 16 were put in the auction. The total output of those 16 facilities was 307MW which is much more than expected capacity of 196.96MW. In the end, 7 out of 16 facilities were bid successfully and those 7 bids satisfied the expected capacity above.
Of all the successful 7 bids, the lowest price was 14.25 JPY/kWh, which was approximately 2 yen lower than the second auction. This means the price of the solar power can be now around 14 JPY. On the other hand, the maximum bid price, which was in the sixth bid, was 15.37 JPY/kWh.
The price of some bids were unexpectely lower than before; however, when the aucition was held for the first time, many bids were declined from owner sides. This means that we really need to keep an eye on the market shift and the auction results itself carefully to see if the auction system really pushes on the investments on the renewable energy.