Japan selects two groups for third offshore wind power round

Kansai Electric Power Co

24/12/2024 12:11

By Yuka Obayashi
       TOKYO, Dec 24 (Reuters) - Japan's industry and land
ministries on Tuesday selected two consortiums, one including
energy major BP  BP.L , as operators for two offshore wind
blocks in a third major round of public auctions.
    The results of this round held under a law promoting wind
power development, were closely watched by domestic and
international energy companies weighing the advantages of
renewable exposure, industry analysts said.
    Japan aims to accelerate offshore wind development as part
of its decarbonisation strategy, targeting 10 gigawatts (GW) of
offshore wind farm deals by 2030, and up to 45 GW by 2040.
    A consortium of JERA, Green Power Investment, and Tohoku
Electric Power  9506.T  won the 615 megawatts (MW) wind farm on
the southern side of the Japan Sea off Aomori prefecture, near
Tsugaru city and the town of Ajigasawa. 
    Another consortium, including Marubeni  8002.T , Kansai
Electric Power  9503.T , BP's unit BP IOTA, Tokyo Gas  9531.T 
and local firm Marutaka secured the 450 MW wind farm off the
coast of Yamagata prefecture near the Yuza town.
    Both bottom-fixed projects are scheduled to begin operations
in June 2030, with turbines supplied by Spain's Siemens Gamesa, 
a government statement said.
    In a previous auction round, Spanish utility Iberdrola
 IBE.MC  and Germany's RWE  RWEG.DE  were among the winning
consortiums of a separate offshore block. 
    Earlier this month, BP and JERA agreed to join forces to
form one of the world's largest offshore wind operators,
highlighting a trend of Japanese firms partnering with western
players for expertise and growth, while foreign companies seek
entry into Japan's expanding renewable energy market.
    Japan's government conducted its third round of offshore
wind tenders from mid-January to mid-July, as it strives to meet
its 2050 carbon-neutral target.
    A draft revised energy plan envisions renewables accounting
for up to 50% of its electricity mix by fiscal 2040.
    However, surging development costs, supply chain issues and 
inflation have weighed on the offshore wind sector.

 (Reporting by Yuka Obayashi; editing by Barbara Lewis.)
 ((Yuka.Obayashi@thomsonreuters.com; +813-4520-1265;))