Japan sets feed-in tariff levels for offshore wind

Japan’s Ministry of Economy, Trade and Industry (METI) has issued guidance on future feed-in tariffs for offshore wind.

The procurement price committee met on 15 September 2020.

A draft ceiling price of 29 JPY/kWh (approximately 0.28 USD/kWh) was proposed by the chairman of the advisory panel for the reverse auctions planed for later this year. This price covers the four Round 1 projects:

• Noshiro City, Mitane Town and Oga City in Akita Prefecture
• Yurihonjo City – North in Akita Prefecture
• Yurihonjo City – South in Akita Prefecture
• Choshi in Chiba Prefecture

This is a reduction on the 36 JPY/kWh (approximately 0.34 USD/kWh) that was set for the period ending 2019. The 59th advisory panel for procurement price approved the price.

The new lower price reflects cost-reductions that METI believes are achievable, based on analysis of latest OPEX and CAPEX assumptions and global comparisons. METI has calculated a pre-tax IRR of 10%.

The table below summarizes the outcome:

Details of the projects are available in RCG’s GRIP offshore wind data base. Click here [↑]

If you would like to know more about this announcement or more information about how RCG could assist you in the Japanese offshore wind farm market generally, please contact one of our team.