Japan To Add 17 Gigawatts Of New Solar By End Of 2020.
Growth in Japan’s solar power sector is predicted to slow over the coming decade, according to a new analysis from the Fitch Group, but not before the industry adds 17 gigawatts (GW) worth of new solar capacity between the end of 2017 and the end of 2020.
The slowdown comes in the wake of the company’s transition to competitive auctions for utility-scale solar power capacity procurement in 2017.
However, while the long-term outlook expects a slowdown, Japan’s project backlog stemming from the successful and attractive FiT will continue to support robust growth, and Fitch expects another 17 GW worth of solar capacity to be brought online between 2018 and the end of 2020.
The transition to competitive auctions for utility-scale procurement comes as the Japanese government begins to prioritize reducing retail electricity prices rather than simply prioritizing solar growth.
Unfortunately, the second competitive auction held this year failed to attract any successful bidders, leaving the transition treading water for the time being.
Specifically, while Fitch expects Japan’s solar sector to add 17 GW in the next few years, it conversely expects Japan will only see 14 GW of new solar brought online between 2021 and 2027. »
