METI

With the transition to an auction procurement mechanism under way, Japan is this year set to expand the range of projects subject to the tender system from 2 MW-plus to 500 kW and above. With certain FIT cuts for projects with more than 2 MW capacity set to take effect in the second half of the year, the Ministry of Economy, Trade and Industry has now proposed reducing tariffs for 10-500 kW commercial PV systems.

A Teikoku Databank report says as many as 95 solar companies went bankrupt last year – seven more than in 2017. The company warns the negative trend that began in 2016 may escalate as FIT reductions for large-scale solar come into effect.

In last month’s exercise, final prices were slightly lower than those seen in previous procurements and the total allocated capacity was 196.6 MW. Through the three tenders held by the Japanese government, around 500 MW of solar was assigned, against a target of 1-1.5 GW. Land availability, grid constraints and high labor costs make projects expensive and force developers to use mountainous regions.

The Japanese Government has wrapped up its second of three planned solar auctions, with nine companies winning the rights to build a total of 196.96 MW of commercial PV capacity.

The Japanese government said the recent publication of a quality-evaluation guide for solar projects will ensure the long-term sustainability of the country’s PV sector, partly by improving maintenance standards, while serving as a potential boon for investment in the relatively dormant secondary market for operational installations.

Pacifico Energy is set to commence construction on two utility-scale PV projects totaling 112 MW and 72 MW, respectively, while Trina Solar is working on a 29 MW plant.

Kyocera will participate in a new project in northern Japan to test how flexibly electricity suppliers can respond to fluctuations in energy supply and demand.

The Japanese government is steadily working toward the release of the country’s fifth strategic energy plan, but it needs to work with the private sector more effectively to promote the deployment of solar over the coming decades, according to a new report. 

Japan will likely install 6 GW to 7.5 GW (DC) of solar in 2018, from about 7 GW in 2017, despite government efforts to cancel approvals for projects that were registered under the country’s old feed-in tariff (FIT) program, according to a new report.

Japan’s first solar PV auction has reaped disappointing results, with just 41 MW set to be developed. Under the revised FIT, meanwhile, 27.7 GW were cancelled. Despite this, JPEA is aiming for 200 GW of solar PV installs by 2050. Overall, cumulative installed capacity has reached over 40 GW. There are still many plans afoot for large-scale projects, although it is the rooftop sector, which holds the most promise.