The Organization for Cross-regional Coordination of Transmission Operators (OCCTO) announced the awarded results for fiscal year 2025 bids in the long-term decarbonized power source auction on May 13th. The breakdown showed that a total of 28 decarbonized power sources and 4 LNG-fired thermal power plants were awarded, respectively. Particularly, Oma Nuclear Power Plant Unit 1 (ABWR-type, with a capacity of 1,383,000 kW), operated by J-POWER in the Tohoku area and currently undergoing regular maintenance, and Hokkaido Electric Power's Tomari Nuclear Power Plant Unit 1 (PWR-type, with a capacity of 579,000 kW) were awarded.

In addition, a total of two units, Hokkaido Electric Power's Tomatoh-Atsuma Coal-Fired Thermal Power Plant Unit 4 (with a capacity of 700,000 kW) and Kobelco Power Kobe's Kobe Coal-Fired Thermal Power Plant Unit 1 (with a capacity of 700,000 kW), operating in the Kansai area, are expected to be retrofitted for ammonia co-firing. Meanwhile, a total of two units, CEF H2's Miike Coal-Fired Thermal Power Plant Unit 2 (175,000 kW) and Hoku energy's Daiichi Power Plant, will become hydrogen-fired.

The long-term decarbonized power source auction is part of the capacity market, a system designed to encourage new investments in power sources through decarbonization mechanisms. Its purpose is to enhance long-term predictability, which is a challenge for power source investments, and by promoting new investments in decarbonized power sources, to secure supply capacity from decarbonized power sources over the long term. The auction method is a multi-price system where the bid price of each bidding power source becomes the awarded price, and capacity revenue equivalent to the fixed cost level of the power source can be obtained for a principle period of 20 years. Furthermore, approximately 90% of revenues from other markets are subsequently reimbursed.