Publication date: Dec 9, 2025
Prices Hit Cap in Second FY2025 NFC Auction as Non-FIT Volumes Rise
The Japan Electric Power Exchange (JEPX) has released the results of the second-round of the Non-Fossil Value Trading Market (or Non-Fossil Certificate (NFC) Auction) for FY2025. Prices for Non-FIT (Feed-in-Tariff) NFCs, both certificates “without renewable energy designation”, mainly derived from nuclear power and certificates “with renewable energy designation” ones, such as large hydropower, hit the upper limit of JPY 1.30/kWh.
In the Market for Achieving Energy Supply Act Obligations, which handles Non-FIT NFCs, contracted volumes increased in both categories. The volume of the certificates without renewable energy designation rose to 591.68 GWh, a 37.4% increase from FY2025 Round 1. Meanwhile, certificates with renewable energy designation reached 623.11 GWh, marking a 73.9% increase. On the sell side, bids for the certificates without renewable energy designation fell 2.3%, whereas bids for certificates with renewable energy designation rose 85.5%. On the buy side, bids declined sharply, down 51.3% for without renewable designation and 52.3% for with renewable designation. Looking back in FY2024, all sell bids were contracted in Rounds 3 and 4, with prices hitting the upper limit. Market participants suggest that buyers may have anticipated a similar patternthis year.
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Prices Hit Cap in Second FY2025 NFC Auction as Non-FIT Volumes Rise
In the Environmental Value Trading Market which trades FIT certificates, contracted volume fell 27.5% from the previous round to 15,215.98 GWh. The contracted price remained at the lower limit of JPY 0.40/kWh, with the highest contracted price at JPY 0.70/kWh. Compared with the previous round, prices continued to stick to the lower limit, while both buy-bid volumes and contracted volumes declined.
Shulman’s commentary: In the first round of FY2025 NFC auction, Non-FIT NFCs ‘with renewable energy designation’ were priced at JPY 0.91/kWh, while Non-FIT NFCs ‘without renewable energy designation’ were priced at JPY 0.72/kWh. The second auction saw a sharp increase in contracted prices as more companies sought to secure Non-FIT NFCs at an earlier stage, placing the bid at the upper price limit.