Japan strides for decarbonizing 120 GW fossil-fuel power supply
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Japan has taken a major step towards decarbonizing 120 GW of fossil fuel-based power generation sources accounting for nearly two-thirds of its installed capacity, with the first wave of 9.77 GW of decarbonized power auctions.
The long-term decarbonization power supply auction, operated by the Organization for Cross-regional Coordination of Transmission Operators (OCCTO ) which comprises all power companies in Japan, comes in the backdrop of the need to decarbonize power for Japan’s 2050 carbon neutrality.
The step is crucial as Japan's power demand is expected to grow at an annual rate of 0.4% from 805.6 TWh in fiscal year 2024-25 (April-March) to 834.5 TWh in FY 2033-34, according to a survey of major power utilities by the OCCTO.
To support the use of hydrogen and ammonia in the country, Japan's House of Councilors in the Diet passed a bill May 17, which paves the way for introducing the cost-for-difference subsidy framework for low carbon hydrogen use, part of which is expected to go for power generation.
Platts, part of S&P Global Commodity Insights, assessed Qatar hydrogen produced via alkaline electrolysis (including capex) at $4.11/kg May 30, almost steady month on month.
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