- Natural Resources & Energy
Long-Term Decarbonization Power Source Auctions in Japan
- Updated Guidelines Relevant to BESS
In January 2024, Japan held its first Long-Term Decarbonization Power Source Auction ("Auction"), a support program that encourages investments in large-scale power generation projects for decarbonization, such as battery energy storage systems (“BESS”), by providing capacity providers with fixed capacity payments over a 20-year period, subject to the capacity providers’ compliance with certain rules. Among the various categories, the BESS and pumped storage category received significant attention, with bids totaling ~5.4 GW, far in excess of the maximum target capacity of 1 GW. Based on the results announced in April 2024 and feedback from the first Auction, the Organization for Cross-regional Coordination of Transmission Operators in Japan (“OCCTO”) issued a Capacity Market Long-Term Decarbonization Power Source Auction Solicitation Outline for...To read the full article, please see the PDF file
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Amane has extensive experience in a number of project finance transactions and acquisitions in connection with renewable energy projects in Japan and other Asian countries. In addition to his broad knowledge of the complex regulations surrounding renewable energy, he also has a deep understanding of IPP business reinforced by his work experience in London at a major Japanese trading company. His clients include domestic and international energy project developers, investors, lenders, construction contractors, and utility companies. He advises, represents, and advocates on behalf of clients in a wide range of transactions in the renewable energy sector, including development of green-field projects, debt and equity financing, selling and acquisition of energy projects, and legal due diligence. He also has a wealth of experience in offshore wind projects from the emergence of offshore wind business in Japan in the mid-2010s, including advising clients in the public tender process under the Offshore Renewable Energy Act.