The Japanese government released the results of the "Round 3" offshore wind auctions. Two separate consortia were selected for two areas with total 1GW capacity.
Round 3 Auction Results
On December 24, 2024, the Japanese Ministry of Economy, Trade and Industry ("METI") and Ministry of Land, Infrastructure and Transport and Tourism ("MLIT") released the results of the Round 3 auctions. The winners were:
- for Sea of Japan (South), Aomori ("Aomori South") (615MW): JERA, Green Power Investment and Tohoku Electric; and
- for Yuza, Yamagata ("Yuza") (450MW): Marubeni, Kansai Electric, BP, Tokyo Gas and Marutaka.
Due to there being only two areas offered for the auctions, Round 3 was very competitive. The announcement from METI and MLIT confirms the following:
- there were a total of three consortia bidding for Aomori South;
- there were a total of four consortia bidding for Yuza;
- the bid price of all of the bidders was JPY 3/kWh (which provides the maximum points for the price component); and
- the committed commercial operation date (COD) for all the bidders was June 30, 2030.
The above means that neither the bid price nor the COD had an impact on the selection of the winners for Round 3.
Outlook for Round 4 Auctions
The Round 4 auctions will likely take place in 2025 following a similar timeline as Round 3—i.e., bid submissions being due in July and results being released in December. However, it is not yet clear:
- which areas will be chosen for the Round 4 auctions; and
- what rule changes will be implemented for the Round 4 auctions.
The current "Promising Zones", which are potentially candidate areas for the Round 4 auctions, include five areas in Hokkaido, such as Matsumae (250MW).
METI and MLIT are still discussing the possible rule changes for the Round 4 auctions, which could include (i) points awarded to early CODs, (ii) price indexation, and (iii) deposit money.
Bidders looking to participate in the Round 4 auctions will need to closely watch the discussions being undertaken at, for example, the joint meetings held by METI and MLIT.
1 https://www.meti.go.jp/press/2024/12/20241224002/20241224002.html
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