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ARTICLE · 01 JULY 2026

Japan’s Third Long-term Decarbonized Power Source Auction (LTDA) Results

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Japan's third long-term decarbonized power source auction reveals a strategic shift in the country's energy transition, with LNG-fired thermal power receiving significantly increased capacity awards while battery energy storage faces stricter requirements and reduced allocations. The results reflect heightened geopolitical considerations, including country-of-origin limitations on battery equipment and an emphasis on energy resilience, alongside measures to accommodate rising project development costs throu

JapanEnergy and Natural Resources

On May 13, 2026, the Organization for Cross-regional Coordination of Transmission Operators (OCCTO) published the results of the 3rd long-term decarbonized power source auction: LTDA Results

The results show a small reduction in the capacity awarded to energy storage projects compared to the previous year's auction. This follows stricter requirements being introduced for battery energy storage system (BESS) projects, including, among others, country of origin limitations on BESS equipment and longer duration performance requirements. At the same time, LNG projects have been awarded much greater quantities of capacity, indicating an increased role for such projects in Japan's energy transition process. Prices bid by successful projects also increased generally, reflecting the introduction of measures to accommodate various increased costs to bring projects into operation in Japan. 

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