No.2506
Solar PV Power Plant Secondary Market in Japan: Key Research Findings 2020
Solar PV Power Plant Secondary Market in FY2020 Projected to Attain 970MW
Yano Research Institute (the President, Takashi Mizukoshi) carried out a survey on the domestic solar PV (photovoltaic) power plant secondary market and found out the market trend, trend of market players, and future outlook.
Market Overview
The solar PV power plant secondary market size based on generation capacity (MW) of operational PV power plants was estimated as 730MW in FY2019.
As sales price of newly certified projects for commercial PV power generation has been declining year by year under the FIT scheme, increasing number of power generation enterprises and investors are considering acquiring profitable commercial solar power plants. On the other hand, some PV-power plant owners are seeking to sell the plants, after reexamining the power generation business, disaster risks, and cost for maintenance of power generation facilities.
Those investors and power generation enterprises considering renewable energy as growth sector are expanding possession of PV power plants regardless of whether newly built or in operation, which is boosting the demand for PV power plants. As of first half of 2020, solar PV power plants are seller’s market, with the sale price remaining high.
Noteworthy Topics
Reexamining of PV Power Generation Business and Investment during COVID-19 Calamity
Some private companies are considering selling solar PV power plants that they own for concentration of management resources and securing of capital resources to cover the loss from sluggish sales seen in their major business due to influence of COVID-19 pandemics. If the current difficult conditions continue, this tendency may expand furthermore.
Meanwhile, there are investment funds and individual investors that regard operational solar power plants as low-risk asset to generate stable revenues from electricity sales and that concentrate their diversified investment solely to PV power plants. Therefore, the demand for solar power plants is forecasted not to decline in the “With Corona” era.
Future Outlook
The solar power plant secondary market size based on generation capacity (MW) of operational PV power plants is projected to attain 970MW in FY2020, and 1,210MW by FY2021. There continues to be demand to purchase operational solar PV power plants by investment funds focusing on infrastructure investment and power generation business, and by individual investors interested in investment other than stocks.
If new development of solar PV power plants becomes difficult, as local contribution (such as supply of electricity for local communities in an emergency, etc.) may become required and as FIP (Feed in Premium) scheme is scheduled to be newly established, ownership of an existing solar PV power plant can be a method to quickly join a renewable energy business.
Research Outline
2.Research Object： Companies developing the services for secondary market of PV projects (intermediary companies, asset value assessment companies, etc.,) power generation enterprises, O&M (Operation &Maintenance) service providers, financial institutions, and local public organizations
3.Research Methogology： Face-to-face interviews by the specialized researchers, survey via telephone, and literature research
What is the Solar PV Power Plant Secondary Market?
The solar PV (Photovoltaic) power plant secondary market in this research indicates the market to transact solar PV power plants already in operation.
The market size is based on the generation capacity of operational solar PV power plants that have been sold or to be sold during the fiscal year concerned (transactions include transfer of power generation business.) Note that the market size calculated in this research does not include the transactions of PV power plants that have not yet been operated (e.g., in construction phase).
＜Products and Services in the Market＞
Transaction of solar PV power plants already in operation (including business transfer of solar power generation)
Published Report
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