December 7 (Renewables Now) - Solar projects in Japan bigger than 2 MW which have not yet been completed even though they secured feed-in tariffs (FiTs) in 2012-2014 have now been given a bit more time to reach key milestones or face a cut to their FiT.
On Wednesday, the Ministry of Economy, Trade and Industry (METI) announced that such projects will have until the end of September 2019 to submit grid connection applications. A deadline of March 31 had been proposed previously, angering investors and developers.
The delayed projects will have to start operations by end-September 2020.
The deadline for grid connection application for projects smaller than 2 MW remains March 31, 2019, as in the earlier proposals. These have to be up and ready to run in March 2020.
METI calculates that 23.52 GW of solar projects with FiT contracts awarded between 2012 and 2014 have not reached completion yet. The table shows details.
|Year||FY 2012||FY 2013||FY 2014|
|FiT rate for the year (JPY/kWh)||40||36||32|
|Total capacity with FiT contract (in GW)||14.82||26.39||12.49|
|-- of which operational (in GW)||11.47||13.55||5.16|
|-- of which not operational (in GW)||3.35||12.84||7.33|
The projects that are unable to meet the new deadlines set by METI will have their FiT reduced to JPY 21 (USD 0.18/EUR 0.16) per kWh.