Japan’s Organization for Cross-regional Coordination of Transmission Operators (OCCTO) has announced the results of its 29th solar auction, the second bidding round for fiscal year 2026. The auction was significantly undersubscribed, with only 38.2 MWAC of solar capacity awarded across eight successful projects, against the targeted 115.4 MWAC.
This is the first undersubscribed solar bidding round in Japan since the 26th auction, highlighting weaker developer participation. Initially, developers submitted business plans for 13 projects with a combined capacity of around 87.7 MWAC for eligibility screening. Twelve projects were approved, but only eight developers proceeded to submit final bids, leaving nearly 49 MWAC of eligible capacity without bids.
All eight submitted bids were selected for support under Japan’s feed-in-premium (FIP) scheme. The weighted average winning price stood at 8.89 yen per kWh. Winning prices ranged from 5.30 yen per kWh to 9.48 yen per kWh, with the highest bid remaining below the official ceiling price of 9.60 yen per kWh.
AC12 LLC secured the largest award, receiving 29.9 MWAC at 9.48 yen per kWh. Its project represented approximately 78% of the total capacity awarded in the auction. Sandia LLC secured two projects totaling 2.56 MWAC and submitted the lowest winning price of 5.30 yen per kWh.
Other successful bidders included Japan Petroleum Exploration (JAPEX), Solar Field 13 LLC, IQg, WAKO, and Sunshine Kyushu Hombu. No developer submitted a zero-yen bid to seek general market subsidies in this round.
The selected developers must pay their deposits by September 7, 2026, and obtain FIP certification by March 24, 2027.
Due to the low bidding volume, the procurement target for the upcoming 30th solar auction will be reduced to 91 MWAC under regulatory rules. Business plan submissions for the next auction are expected to open in late September 2026.
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