Here is a summary of the content in 400 words:
To ensure the successful execution of projects, the government is implementing changes to the deposit system for power generation capacity. Specifically, the government will raise the deposit required to cover delays from 13,000 yen to 24,000 yen per kilowatt of power generation capacity. This change aims to encourage project developers to plan and execute their projects efficiently, reducing the likelihood of delays.
The deposit amount forfeited will increase incrementally based on the length of the delay, with consideration given to supply chain disruptions. The revised system is aimed at holding project developers accountable for their own performance, while also providing a disincentive for delays.
The changes will take effect from the government’s next auction round, which is its fourth. Notably, the government has also indicated that the revised deposit system could be applied to future cost increases faced by companies that won the first three rounds, provided certain conditions are met. This suggests that the government is willing to revisit and adjust its decisions as necessary to ensure the success of the projects.
The revised deposit system is part of the government’s efforts to revamp its power market and promote a more efficient and transparent auction process. The changes are expected to have a positive impact on the power industry, as developers and operators will be incentivized to work more efficiently and plan their projects more carefully. Overall, the revised deposit system is a significant step towards improving the overall performance of the power market and ensuring the success of the projects.