Auction system for wind power

Committee:
Energy
status:
Some progress
Published:
After the award of Round 1 auction in December 2022, the government postponed the ongoing Round 2 process and started revising the auction system for the next rounds considering the energy scrutiny situation, which had dramatically changed due to the Ukraine war.

Recommendations

  • It is particularly important for policy makers to 1) ensure the fairness and transparency of the competitive environment, 2) promote planned, continuous and large-scale offshore wind power generation, and 3) develop the right balancing of risk allocations between Governments and developers(price escalation formula, availability of the grid, too much strict requirements on earlier COD can force developers to an aggressive plan which put pressure on supply chain and could be detrimental to the others projects, more on Time Delivery of the projects matching the overall global wind offshore needs of Japan should be promoted …).