Japan's Green Investment Promotion Organization has announced the final results of its 21st solar auction for utility-scale projects, with a total of 33.6 MW of PV capacity awarded. While the auction aimed to allocate 107 MW, it successfully selected 22 projects, ranging from 325 kW to 13.3 MW.
The lowest bid, an impressive JPY 5.0 ($0.035) per kWh, came from a 650 kW project, while the highest bid of JPY 9.13 per kWh was submitted for a 750 kW project. The overall average bid price settled at JPY 8.08 per kWh.
Comparing previous auctions, this round saw competitive pricing. The final average price in the past seven auctions ranged from JPY 4.5 to JPY 9.73 per kWh. In the 20th auction, 93 MW of PV capacity was awarded, with prices from JPY 4.5 to JPY 8.8 per kWh, and an average of JPY 6.8 per kWh. In the 19th round, completed in March, 134 MW was allocated with an average final price of JPY 5.11 per kWh.
In recent auctions, prices have fluctuated. The 18th auction saw 105 MW awarded with a lowest bid of JPY 7.94 per kWh, while the 17th round allocated 69 MW with a lowest bid of JPY 8.95 per kWh. In the 16th auction, 119.7 MW was awarded, with the lowest bid coming in at JPY 9 per kWh. In the 15th auction, only 16.2 MW of the 175 MW tendered was awarded, with a lowest bid of JPY 9.48 per kWh.
The 14th auction, held in November 2022, saw 137.2 MW of capacity awarded, with the lowest bid at JPY 9.65 per kWh and an average final price of JPY 9.73 per kWh.
This latest auction highlights Japan's ongoing efforts to reduce solar energy costs while driving investment in large-scale solar projects, positioning the country as a key player in the global solar market.
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