Japan Solar Update: No.91 (Apr 8 ~ 12, 2024)
<Key points>
- The Procurement Price Calculation Committee completed discussions and presented the proposal for the balancing cost under the Feed-in Premium (FIP) program
- The balancing cost to be granted is set at 1.0 yen/kWh (0.00667 cents/kWh) in the first year of operation, and the amount of annual reduction is set to be uniform for each year up to the fourth year
- For PV generation, this scheme is applied to the projects that will start operation under the FIP program between FY 2024 and FY 2026
- The committee agreed on the contents of the secretariat’s proposal and plan to proceed with preparations for implementation of the proposal from FY 2024
Balancing cost under the FIP program (proposal)
| Current scheme | Secretariat’s proposal |
| In FY 2022, 1.0 yen/kWh (0.00667 cents/kWh) will be granted as a balancing cost. Then, it will be reduced by 0.05 yen/kWh annually until the third year, and by 0.1 yen/kWh (0.00067 cents/kWh) from the fourth year onwards. and so on | The balancing cost for the first year of operation under the FIP system will be 1.0 yen/kWh (0.00667 cents/kWh). Then, it will be set so that the amount of reduction in each year from the first year to the fourth year is uniform. and so on |
Eligible projects
Wind: Projects which start operation between FY 2024 and FY 2027 under the FIP program*
– If commissioned in FY 2025: 1.0 yen/kWh is granted in FY 2025, which will be reduced to 0.83 yen/kWh in FY 2026
– If commissioned in FY 2026: 1.0 yen/kWh is granted in FY 2025, which will be reduced to 0.80 yen/kWh in FY 2027
Chairperson Yamauchi
The Procurement Price Calculation Committee completed discussions
Figure 1 Details of the balancing cost under the Feed-in Premium (FIP) program
Source: Materials from the 59th meeting of the Subcommittee for Large-volume Introduction of Renewable Energy and
Next Generation Electricity Network (February 7, 2024), compiled by RTS Corporation