Japan's Power Market News 2022/W32
Dan Shulman
Japanese Energy Market | Energytech | Renewables | Power Wholesale and Retail | Bilingual Expert Team | Consulting & Local Representation | Helping worldwide companies enter the Japanese market and thrive
Small-scale plants and innovative ownership structures drive Japan's solar expansion.
Two announcements last week suggested that Japan's solar capacity development is likely to be driven by small-scale installations over the coming years.?
The Mainichi Shimbun reported on August 5th that 56% of Tokyo's residents approved of the city's plan to mandate solar PV on all new residential buildings. This could significantly impact total installed capacity in a country where most houses are rebuilt every 30 years or so. The mandate would also strengthen new business models, such as third-party ownership and aggregation, which are already growing. For example, on July 29th, Osaka Gas said it would be working with West Holdings and JR Kyushu to install solar panels on unused land along JR Kyushu's railroads. West Holdings will develop the plants, Osaka Gas will manage the balancing and power and renewable credit sales, while JR Kyushu will use the power in its stations. They expect most of the assets to be below 1MW and non-FIT. This is something that the Japanese government has been pushing for since its last target energy mix publication.?
In addition, on August 4th, Kankyo Business reported that Renova had signed a PPA with Tokyo Gas for up to 13MW of FIP and other projects by the end of 2023. Renova will sell the power and renewable credits and pay a balancing fee to Tokyo Gas. Tokyo Gas will take care of the plants' balancing and imbalance penalties and sell the power and credits to off-takers.
领英推荐
We will likely see more of these 'sleeving' deals as more projects develop outside the FIT scheme.
Sources: Mainichi Shimbun August 5th: 56% of residents approved of solar PV proposal, Osaka Gas, West Holdings and JR Kyushu to develop solar plants , Kankyo Business August 4th : Renova and Tokyo gas sign PPA
---
Thanks for reading.?Subscribe?to stay up to date on Japanese power market news or get in touch for more information.
READ MORE from our newsletter:?The latest news on Japan's power grid.
Japanese Energy Market | Energytech | Renewables | Power Wholesale and Retail | Bilingual Expert Team | Consulting & Local Representation | Helping worldwide companies enter the Japanese market and thrive
2 年Japan's Power Market News 2022/W33: Shulman Advisory shares the latest news on METI's new?energy?priorities - https://www.dhirubhai.net/pulse/japans-power-market-news-2022w33-dan-shulman
Japanese Energy Market | Energytech | Renewables | Power Wholesale and Retail | Bilingual Expert Team | Consulting & Local Representation | Helping worldwide companies enter the Japanese market and thrive
2 年Kevin Newman Maor Shwartz Oliver Senter Cedric Daubord, ACMA, CGMA Munenori Fernando Horie Matthew Croft Charles Fahy Yoav Ramot Casey ケーシー Abel エーブル Jamie Miyazaki Matthew Kyle Yuriy Humber Koyama Isamu Baro Hyun Luis Perezagua Pérez Jose Antonio Millan Ruano Antony Stace. ステイス アントニー
New Energies India - Mitsui O.S.K. Lines
2 年Interesting as always! Was there any information on whether the Renova projects were FIT -> FIP projects, or new FIP projects? With spot prices trending upwards, there will be an increasing incentive to take FIT projects out into the market.