Demand is weak at Japan's first solar auction
Prices at Japan's first solar auction are triple the average of other global tenders. The lowest offer on 140 MW of tenders was $154.4/MWh and the highest $188.5 per MWh. A total of 500 MW will be auctioned. Nine successful projects were proposed by eight firms; four Japanese and four global, including Canadian Solar, X-Elio and Hanwha Q Cells.
A solar tender in Japan seeking to award contracts to 500 MW of projects got roughly 140 MW of valid bids, with the lowest offer being JPY 17,200 (USD 154.4/EUR 130.7) per MWh.

The highest bid in the tender was of JPY 21,000 (USD 188.5/EUR 159.6) per MWh. In comparison, recent solar auctions in Germany, the Middle East, India and Latin America have attracted bids per MWh lower than or roughly equal to EUR 50 (USD 59), SAR 67 (USD 18.4/EUR 15.6), INR 2,650 (USD 41/EUR 34.6) and USD 25, respectively.

Nikkei Asian Review reports that the auction in Japan, in which rates are apparently more attractive than in other parts of the world, have lured several foreign companies. It mentions Canadian Solar, Hanwha Q Cells and X-Elio among the winners of power contracts. In total, the nine winning projects have been proposed by eight companies -- four Japanese and four international.

At the end of 2016, the Japanese government announced the start of tenders for 2-MW-plus solar power plants, including this 500-MW auction and two more in fiscal 2018/19.

(JPY 100 = USD 0.9/EUR 0.76)

Choose your newsletter by Renewables Now. Join for free!