Japan’s 20th solar auction concludes with average final price of $0.029/kWh

Japan has allocated 93 MW of PV capacity in its latest procurement exercise. The lowest bid for a 1.9 MW solar project came in at JPY 4.5 ($0.029)/kWh, while the average final price was JPY 6.8/kWh.

July 30, 2024 Emiliano Bellini

Image: Tianshu Liu/Unsplash

Japan’s Green Investment Promotion Organization has released the final results of its latest auction for utility-scale solar energy projects.

The state-run agency said that 93 MW of PV projects were selected in the procurement exercise. It was Japan’s twentieth auction for utility-scale solar and was expected to assign 122 MW of generating capacity.

The 47 selected projects range in size from 300 kW to 19.5 MW.

The lowest bid was JPY 4.5 ($0.029)/kWh and was submitted by Japanese oil company Eneos for a 1.99 MW project. The highest bid of JPY 8.8/kWh was submitted for a 9.5 MW project. The average final price came in at JPY 6.8/kWh.

In the last six auctions, the final average price ranged from JPY 5.11/kWh to JPY 9.73/kWh.

In the 19th exercise, concluded in March, the Green Investment Promotion Organization allocated 134 MW at an average final price of JPY 5.11/kWh. In the 18th auction, finalized in November 2023, the Japanese authorities allocated 105 MW of PV capacity, with the lowest bid reaching JPY 7.94/kWh. In the 17th exercise, held in late August 2023, the lowest price came in at JPY 8.95/kWh, with 69 MW of allocated capacity.

In the 16th auction held in July 2023, the allocated power was 119.7 MW and the lowest bid came in at JPY 9/kWh. In the 15th solar energy auction, which concluded in March 2023, the Green Investment Promotion Organization only allocated 16.2 MW of the 175 MW tendered. The lowest bid offered in the auction was JPY 9.48/kWh and the average final price was JPY 9.56.

In the 14th exercise, held in November 2022, the Japanese authorities assigned 137.2 MW of PV capacity, out of 175 MW tendered. The lowest bid came in at JPY 9.65/kWh and the average final price was JPY 9.73/kWh.

In the 12th procurement exercise, which was finalized in June 2022, the assigned PV capacity was 153.7 MW. The lowest bid came in at JPY 8.85/kWh. In the 11th auction, held in March 2022, the assigned PV capacity was 268.7 MW and the lowest bid was JPY 8.99/kWh.

In 2021, the Japanese government allocated 675 MW of PV capacity across three different auctions. In previous auctions, it allocated 942 MW.

This content is protected by copyright and may not be reused. If you want to cooperate with us and would like to reuse some of our content, please contact: editors@pv-magazine.com.