OCCTO awards 75.4MWAC to 27 solar projects in undersubscribed auction
Japanese grid operator OCCTO allocated 75.4MWAC in its third solar auction for FY2025, with an average feed-in-premium price of 7.13 yen per kWh, marking a session that fell short of initial subscription targets.
| Sectors | Solar Energy, Photovoltaic |
|---|---|
| Themes | Markets & Finance, Sector Analysis |
The Organisation for Cross-regional Coordination of Transmission Operators (OCCTO) in Japan has awarded a total of 75.4 megawatts alternating current (MWAC) across 27 projects in its third solar auction for fiscal year 2025. The results published indicate an average feed-in-premium (FIP) price of 7.13 yen per kilowatt hour (kWh), with several bids selected at the regulatory ceiling of 8.75 yen.
Auction marked by lower participation
Unlike the first two rounds of the fiscal year, this auction was undersubscribed, with no zero-yen bids submitted. This decline in participation contrasts with earlier editions, where developer interest had been stronger. Two companies stood out for the size of their awarded projects: RD Solar Power LLC with a 21.75MWAC project at 6.00 yen per kWh, and Miyagi Motoyoshi Solar LLC, affiliated with EDP Renewables, with a 19.50MWAC project awarded at 7.50 yen per kWh.
One Miyagi Motoyoshi project appears to have been re-awarded after participating in the second auction of fiscal year 2024, indicating persistence among developers despite tight pricing conditions. The selected project prices ranged from 4.97 to 8.75 yen per kWh.
Projects distributed across multiple prefectures
Solar Field 13 LLC ranked third in total volume, with three 1.99MWAC projects awarded at 6.50 and 7.50 yen per kWh. Tekoma Energy, which manages the special purpose company (SPC), confirmed that the plants will be located in Hokkaido, Nagano and Okayama. Project locations could play a strategic role in production stability and grid connectivity.
One 2MWAC project was deemed ineligible after its business plan was reviewed, while five others totalling 2.5MWAC registered without submitting bids. Successful bidders must submit a security deposit by December 15, 2025, and obtain FIP certification by July 1, 2026, to finalise their contracts.
New 79MWAC target set for next auction
Due to the undersubscription of this round, OCCTO has set the procurement target for the final solar auction of the fiscal year at 79MWAC, matching the level set in the year’s first round. Submissions of business plans will open on January 5, 2026, maintaining the current auction schedule despite the temporary dip in developer interest.
