Japan Restarts Offshore Wind Power Auctions with Updated Rules

Yuka Obayashi
Wednesday, December 28, 2022

Japan has resumed public auctions for offshore wind power projects under revised rules aimed at encouraging a wider range of operators and accelerating the development of infrastructure, the industry and land ministries said on Wednesday. 

The government has launched the second major round of auctions to select operators for four new areas capable of generating 1.8 gigawatts (GW) of offshore wind power. 

The areas include the 356 megawatt (MW) offshore wind farm in Happo-Noshiro, off Akita prefecture in northern Japan, which initially was put for auction last December, but the process was suspended in March after complaints from businesses about the lack of clarity around first-round bidding. 

Other areas are off Oga-Katagami-Akita (336 MW) and Murakami-Tainai (700 MW) in northern Japan and off Saikai (424 MW) in southwestern Japan. 



The auction runs from Wednesday until June 30, with the result expected in March 2024, though it could come next December if there is no scheduling clash between the two projects in Akita using the same port. 

Japan's offshore wind power market is set to grow as the government has set a goal of installing up to 10 GW of offshore wind capacity by 2030, and up to 45 GW by 2040. 

But the auction process has been delayed due to criticism by the industry about the government's selection last December of three consortiums, all led by Mitsubishi Corp to operate all three areas in the first major round of auctions. 

After lengthy discussions, the ministries amended the bid rules in October, giving a higher evaluation score to operators that submit earlier start-up dates and setting a 1 GW limit on bids that one consortium can win when multiple ocean areas are auctioned. 

Global companies, including Denmark's Orsted and Germany's RWE, have shown an interest in the Japanese market, but industry sources say the limit on how much one group can win is discouraging because it reduces the potential for economies of scale.

(Reuters - Reporting by Yuka Obayashi; Editing by Robert Birsel)

Categories: Renewable Energy Offshore Wind Renewables

Related Stories

Norwegian Oil Investment Will Peak in '25

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

ADNOC Signs Long-Term LNG Deal with Hindustan Petroleum Corporation

BP, ONGC, Reliance Industries Ink Deal for Offshore Exploration in India

Sapura Scoops Over $118M for Chevron, PTTEP Subsea Ops off Thailand

China Rolls Out 17MW Floating Wind Turbine Prototype

CNOOC Finds Oil and Gas in South China Sea

Seatrium Makes First Turnkey FPSO Delivery to Petrobras

Current News

SPE Offshore Europe 2025 set to drive transformational change for the energy sector

Shipbuilder Delivers Fast Crew Boat Pair to Aesen

Norwegian Oil Investment Will Peak in '25

Saipem Marks First Steel Cut for Tangguh UCC Project at Karimun Yard

Saipem Wins FEED Contract For Abadi LNG Project FPSO Module In Indonesia

Cheniere, JERA Ink Long-Term LNG Sale and Purchase Agreement

Shelf Drilling Lands New Jack-Up Contract in Vietnam, Extends Egypt Deal

Seatrium Engages Axess Group to Clear FPSOs for Brazil Deployment

Inpex Picks FEED Contractors for Abadi LNG Onshore Plant

Inpex Kicks Off FEED Work for Abadi LNG Scheme Offshore Indonesia

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com