Japan Caps Onshore Wind Auction at 14 Yen per kWh

Japan's sixth onshore wind auction has concluded, allocating 700 MW of capacity to successful bidders. The Organization for Cross-regional Coordination of Transmission Operators (OCCTO) ran the auction under its Feed-in Premium scheme, with a price cap of 14 yen per kilowatt-hour ($0.090/kWh). Projects that received public subsidies will face a price reduction, calculated by dividing the subsidy amount by expected output over the support period.

The bidding process took place from October 13 to 26, and results were published on November 2. Winners have been notified, but a supplementary auction may follow in January 2027, covering 40% of the volume left unallocated in this round. The cap for this auction will be set at whichever is higher between the weighted average price of accepted bids and 13.70 yen/kWh ($0.088/kWh).

Installations must begin commercial operation within four years of certification, with any delay reducing the support period accordingly. Failure to obtain certification before June 2, 2027, will result in forfeiture of guarantees.