Auction system for wind power

Committee:
Energy
status:
Some progress
Published:
Japan has had a number of auctions to award offshore wind projects. While METI has indeed improved the rules and guidelines, the EBC still believe that there is a need for a wholistic effort to make certain that the projects are sustainable. Currently there is a risk of race to the bottom.

Recommendations

  • Japan should adopt a more balanced model for grid infrastructure development.
  • Japan short provide clarification on the implications of transitioning from the Feed in Tariff (FIT) to the Feed-in Premium (FIP) model for Round 1 projects.
  • Japan should expanded capital expenditure offsets. These mechanisms are vital for improving bankability and lowering the cost of capital.
  • Japan should ensuring a fair and transparent CPPA (Corporate Power Purchase Agreements) market.