Gas-fired units win Japan's clean power auction

: Electricity, Natural gas
24/04/30

A planned 10 gas-fired generation units have won Japan's first long-term zero emissions power capacity auction, with the awarded capacity totalling nearly 6GW, or auction volumes sought for the first three years of the programme.

Japan launched the clean power auction system from the April 2023-March 2024 fiscal year, aiming to spur investment in clean power sources by securing funding in advance to drive the country's decarbonisation towards 2050.

The auction generally targets clean power sources — such as renewables, nuclear, storage battery, biomass, hydrogen and ammonia. But the scheme also applies to a new power plants burning regasified LNG as an immediate measure to ensure stable power supplies, subject to a gradual switch from gas to cleaner energy sources.

The first auction held in January saw 10 new gas-fired units with a combined capacity of 5.76GW secure the funding of ¥176.6bn/yr ($1.12bn), the nationwide transmission system operator Organisation for Cross-regional Co-ordination of Transmission Operator (Occto), which manages the auction, said on 26 April. All winners can receive the money for 20 years through Occto, which collect money from the country's power retailers, although they need to refund 90pc of other revenue.

Winners with a new gas-fired project should start commissioning their plants within six years and then begin refurbishment work to introduce clean fuels and technology within 10 years after commissioning. This means all the projects selected in the 2023-24 auction need to start operations by the end of 2030-31. Hokkaido Electric Power previously planned to begin operations of its Ishikariwan-Shinko No.2 gas-fired unit in December 2034 but it has advanced the start-up to 2030-31.

Japan has secured a total of 9.77GW net zero capacity through the 2023-24 auction. Contract volumes include 1.3GW of nuclear, 1.1GW of storage batteries, 770MW for ammonia co-firing, 55.3MW hydrogen co-firing, 199MW biomass and 577MW of hydroelectric power projects, along with the 5.76GW of gas-fired projects.

By Motoko Hasegawa

Japan 2023-24 decarbonisation power capacity auction result
Winner	Power plant	MW*	Planned start-up

Hokkaido Electric Power	Ishikariwan-Shinko No.2	551	FY2030
Tohoku Electric Power	Higashi Niigata No.6	616	FY2030
Kansai Electric Power	Nanko No.1	592	FY2029
Kansai Electric Power	Nanko No.2	592	FY2030
Kansai Electric Power	Nanko No.3	592	FY2030
Chugoku Electric Power	Yanai new No.2	464	Mar '2030
Tokyo Gas	Chiba Sodegaura Power Station	605	FY2029
Osaka Gas	Himeji No.3	566	FY2030
Jera	Chita No.7	590	FY2029
Jera	Chita No.8	590	FY2029
Total gas-fired capacity		5,756.3
			Source: Occto, Argus
* Sending end capacity

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25/05/16

Kuwait's Kufpec gets OK to develop Indonesian gas field

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Austrian PV additions fall 100MW on year in 1Q

25/05/15

Austrian PV additions fall 100MW on year in 1Q

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UK establishes public energy company

25/05/15

UK establishes public energy company

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Greece’s Alexandroupolis LNG off line until mid-Aug

25/05/15

Greece’s Alexandroupolis LNG off line until mid-Aug

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SEFE sells only 900GWh of Rehden gas storage space

25/05/15

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