Japan’s 27th solar auction concludes with average final price of $0.029/kWh

<p class="p1"><span class="s1">Japan has allocated 79 MW of PV capacity in its latest procurement exercise. The lowest price in the auction was JPY 0/kWh.</span></p><p>Japan's <a href="https://www.pv-magazine.com/2022/09/12/japans-13th-solar-auction-concludes-with-lowest-bid-of-0-066-kwh/" rel="noopener" target="_blank">Green Investment Promotion Organization</a> has released the <a href="https://nyusatsu.occto.or.jp/servlet/servlet.FileDownload?file=00PGA00000oRnIZ" rel="noopener" target="_blank">final results</a> of its latest auction for utility-scale solar energy projects.</p>
<p>The state-run agency said that 79<span class="VIiyi" lang="en"><span class="JLqJ4b"> MW of PV projects were selected in the procurement exercise. </span></span><span class="VIiyi" lang="en"><span class="JLqJ4b">It was Japan's 27th <a href="https://www.pv-magazine.com/2021/01/18/japan-pv-auctions-not-a-failure-says-irena/" rel="noopener" target="_blank">auction for utility-scale solar</a> and was expected to assign 196MW of generating capacity. </span></span></p>
<p><span class="VIiyi" lang="en"><span class="JLqJ4b">The 11 selected projects range in size from 72 kW to 29.9 MW. </span></span></p>
<p>The lowest bid was JPY 0.0/kWh and was submitted for one project with a capacity of 400 kW. This facility had likely secured a private power purchase agreement for the sale of electricity and participated in the auction to secure grid connection.</p>
<p>The highest bid of JPY 6.49 ($0.041)/kWh was submitted for two projects. The average final price came in at JPY 4.61/kWh, with the ceiling price being JPY 8.68/kWh.</p>
<p>In the <a href="https://www.pv-magazine.com/2025/12/05/japans-26th-solar-auction-concludes-with-average-final-price-of-0-046-kwh/" rel="noopener" target="_blank">26th auction</a>, the Green Investment Promotion Organization assigned 75.3<span class="VIiyi" lang="en"><span class="JLqJ4b"> MW across 37 projects. The </span></span>lowest bid was JPY 4.97/kWh and the highest JPY 8.75/kWh.</p>
<p>In the <a href="https://nyusatsu.occto.or.jp/servlet/servlet.FileDownload?file=00PGA00000nshhs" rel="noopener" target="_blank">25th auction</a>, the Japanese authorities allocated 223.3 MW at an average price of JPY 6.58/kWh. In the <a href="https://www.pv-magazine.com/2025/07/07/japans-24th-solar-auction-concludes-with-average-final-price-of-0-028-kwh/" rel="noopener" target="_blank">24th auction</a>, the average final price came in at JPY 4.06/kWh and the allocated capacity was 79 MW. In both these procurement exercises, the lowest bid was also JPY 0.00/kWh.</p>
<p>In the previous ten rounds, held between <a href="https://www.pv-magazine.com/2025/03/24/japans-23rd-solar-auction-concludes-with-lowest-bid-of-0-030-kwh/" rel="noopener" target="_blank">March 2025</a> and <a href="https://www.pv-magazine.com/2022/03/09/japan-allocates-268-7mw-in-eleventh-solar-auction-lowest-bid-comes-in-at-0-078-kwh/" rel="noopener" target="_blank">March 2022</a>, the lowest prices ranged between JPY 5.06/kWh and JPY 8.85/kWh.</p>
<p>In 2021, the Japanese government allocated 675 MW of PV capacity across three different auctions. In <a href="https://www.pv-magazine.com/2021/01/18/japan-pv-auctions-not-a-failure-says-irena/" rel="noopener" target="_blank">previous auctions</a>, it allocated 942 MW.</p>