Japan awards 208MW in oversubscribed eighth solar auction

• Japan's 8th solar auction, for projects with a generation capability of more than 250kW, has gathered prospective buyers safeguarding a total amount of 208MW.

The oversubscribed auction included 185 bids, representing an overall ability of 249MW. The 135 effective proposals had a weighted standard of JPY10.82/ kWh (US$ 0.0979/ kWh), with the lowest gaining proposal at JPY10/kWh (US$ 0.09048).

That proposal is the same as the most affordable quote in Japan's sixth auction last November and also down 4.6% on the minimal quote seen in the country's 7th solar auction, which took place in December as well as allocated 69MW.

Project designer and PV module manufacturer Canadian Solar introduced itself as one of the victors in the latest tender, winning 86MWp of capability that consists of one project of 80MWp as well as 2 of 3MWp that will be created in the Tohoku area.

Those projects are expected to reach commercial operation in between 2024-2026 and when constructed will certainly become part of a 20-year power acquisition arrangement with Tohoku Power Electric Company.

Having actually carried out its very first solar auction in 2017, Japan has thus far granted about 1,219 MW of capability via the eight rounds of its solar tender programme.

According to a current report from the International Renewable Energy Agency, a difficulty for Japanese authorities has actually been maintaining qualified prospective buyers, with developers indicating that restraints pertaining to grid connection as well as land accessibility, in addition to bond confiscation regulations, reduced their rate of interest in placing proposals.

Undoubtedly, in the country's fifth solar auction, regardless of more than 416MW at first available, the country granted just 40MW of ability.

Numbers from RTS Corporation expose that Japan released around 8GW of solar last year, taking its collective installs up to around 70GW. Modelling from the Tokyo-headquartered evaluation company recommends that a business-as-usual scenario would certainly see the country achieve around 130GW of mounted solar by 2030 and under an 'sped up situation' could reach 160GW.