Japan selects two groups to participate in the third round of offshore wind power
In a third round of major public auctions, the Japan's land and industry ministries selected, on Tuesday, two consortiums as operators for offshore wind blocks, including one that included energy giant BP.
Analysts in the industry said that domestic and international companies were watching closely to see how this round of competition, held under a new law encouraging wind power development, would affect their exposure to renewable energy.
As part of its decarbonisation plan, Japan wants to accelerate the development of offshore wind farms. It aims for 10 gigawatts of offshore wind farm contracts by 2030 and up to 45GW by 2040.
A consortium consisting of JERA Green Power Investment and Tohoku Electric Power has won the 615 Megawatts (MW), wind farm located on the south side of the Japan Sea, off Aomori Prefecture near Tsugaru City and Ajigasawa.
A second consortium including Marubeni and Kansai electric power, BP IOTA's unit, Tokyo Gas, and the local firm Marutaka, secured the 450 MW offshore wind farm near Yuza, in Yamagata Prefecture.
A government announcement said that both bottom-fixed projects will begin operating in June 2030 with turbines provided by Siemens Gamesa of Spain.
In an earlier auction, the Spanish utility Iberdrola was among the winners of a separate block offshore.
BP and JERA announced their agreement to merge forces earlier this month to create one of the largest offshore wind operators in the world. This trend shows how Japanese companies are partnering with Western players to gain expertise and grow, while foreign firms seek to enter Japan's growing renewable energy market.
The Japanese government held its third round offshore wind tenders between mid-January and mid-July in order to reach its carbon-neutral 2050 target.
The draft revised energy plan envisages renewables making up 50% of the electricity mix by fiscal 2020.
The offshore wind industry has been impacted by inflation, rising development costs and supply chain problems. Reporting by Yuka Obaashi; Editing by Barbara Lewis.
(source: Reuters)
