On September 4, Digital Grid (Minato-ku, Tokyo) announced the results of the third auction of RE Bridge, a matching platform for off-site PPAs (power purchase agreements). The average PPA price requested by matching generators (power generation companies) was 14.9 yen/kWh, and the average PPA price requested by consumers was 14.4 yen/kWh, on par with the previous two times.
Update Digital Grid's “RE Bridge” device
(Source: Digital Grid homepage)
RE Bridge is a service that matches electricity producers and consumers in PPAs in an auction format, and members who have passed the specified screening can participate. Note that the matching does not mean signing a contract but rather a ''business negotiation proposal based on the formation of a pricing agreement''. Initially, it targeted virtual PPAs, but now it includes off-premise PPAs in general, including physical types.
Power plants participating in the auction may or may not be Feed-In Premium (FIP) certified. However, the only power plants that have been matched so far are FIP certified power plants with relatively high FIP unit prices, so Digital Grid strongly recommends that they obtain FIP certification.
RE Bridge registration fee, annual membership fee, auction usage fee, order matching fee, closing fee, etc. are all free. Digital Grid will support contract signing after matching and provide supply and demand management services, including the burden of imbalance fees, after the contract is signed.
There were 27 consumers, 38 generators and 103 power plants participating in the third auction, with a total solar panel capacity of 259 MW. Of these, 12 panels were matched, with a total solar panel capacity of 92 MW. The average FIP purchase price of the eligible power plants was 11.7 yen/kWh and the average environmental value was 1.5 yen/kWh. The average value obtained by subtracting the FIP purchase price from the PPA price desired by the power producers was 3.2 yen/kWh.
The first round runs from September 25 to October 20, 2023, with 11 customers, 18 generators, 52 power plants, and a solar panel output of 98 MW. There is 1 match, a solar panel capacity of 0.5 MW. The PPA price requested by the generators is 15.0 yen/kWh and the PPA price requested by the consumers is 14.0 yen/kWh. The FIP purchase price is 11.0 yen/kWh and the environmental value is 2.8 yen/kWh. The amount obtained by subtracting the obtained FIP price from the generator's desired PPA price is 4.0 yen/kWh.
The second round, held from March 4 to March 29, 2024, involved 21 consumers, 24 power producers, 80 power plants, and a total solar panel capacity of 230 MW. There were 12 matches, a total solar panel capacity of 92 MW, the average PPA price desired by power generators was 14.7 yen/kWh, and the average PPA price desired by consumers was 14.0 yen. The average FIP buyback price was 11.0 yen/kWh, and the average environmental value price was 1.8 yen/kWh. The amount obtained by subtracting the obtained FIP price from the desired PPA price of the power generator was 4.7 yen/kWh.
Digital Grid plans to hold auctions about once a quarter, with the next auction expected around mid-November.
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