Canadian Solar’s first portfolio of feed-in premium (FIP) solar projects commenced commercial operation on June 1, 2024 in Japan. The portfolio includes a 1.2 MWp project in Tsukuba City, Ibaraki Prefecture, and a 1.9 MWp project in Daisen Town, Tottori Prefecture.
Initially these projects were awarded a feed-in tariff (FIT) through 2020 auctions. The company then switched these projects to FIP to meet the growing demand for renewable energy. Additionally, projects under the FIP will generate additional revenue through Non-Fossil Certificates (NFCs).
Furthermore, Toyota Tsusho Corporation will get 100 per cent of the PV power and NFCs by the project, through a 20-year Power Purchase Agreement (PPA) with the company. These NFCs will be passed on to Toyota Tsusho and an electricity retailer, who will supply the power and NFCs to their corporate clients.
REGlobal’s Views: While initially FIT was the preferred route in Japan owing to stable cash flows, FIP is now gaining significant traction to meet the growing renewable energy demand of commercial and industrial customers. The corporate PPA market is becoming bigger in Japan as corporates secure renewable energy to offset emissions and get access to clean energy.
