• Mon. Aug 2nd, 2021

Japan is welcoming bids for offshore wind plants close to Chiba and Akita


Jan 8, 2021

The government announced plans to receive applications for offshore wind energy plants running in some areas bordering Chiba and Akita. These facilities will pilot the further exploration of offshore wind energy technology and its profitability in Japan. This idea was after the country realized that the available energy sources have permanent damage to the land and pronounced emissions on energy consumption from these sources. Wind energy exploration will mark the entrance into renewable energy consumption and be Prime Minister Yoshihide Suga’s legacy for aligning the country towards realizing net-zero greenhouse gas emissions in the next three decades. The planned offshore wind farms’ locations are the coast of Yurihonjo, the coast of Oga, Mitane, Noshiro, and off the coast of Choshi. These coasts are in Chiba and Akita. 

Japan will be experiencing a wind turbine development for the first time on a shallow ocean floor. Such projects have been achievable with foreign wind energy plants. Prime Minister Suga’s leadership will enumerate the companies’ qualifications by submitting applications for consideration in this program. Last year, the administration unveiled a plan demonstrating how to produce 10 million kilowatts of power equivalent to 10 nuclear reactors’ capacity from offshore wind energy projects before the end of this decade. The government aims to set up offshore wind power plants as the primary energy source in the country. The residents of the areas close to these facilities are hopeful that the construction activities can suffice the landscape of these areas as well as the local economies. The country is ready to abandon overdependence on one primary energy source for three decades. Officials leading the applications’ selection stated that each participant has the authority to allocate up to 9.5 years to make the plant operational. However, a shorter time would be advantageous. 

Numerous companies, including electricity utilities, energy traders, and oil retailers, are designing their applications for consideration. Nevertheless, the bidding process comes with its issues. One official outlined his doubts over the profitability of the offshore wind energy plants since one plant would take up numerous costs in development, operationalization of the turbines, and the development of storage systems for this energy. The development of floating wind turbines in deep seas is more expensive, although the energy developed is substantial. Another factor that the companies submitting applications are considering is the taxes since tax rates usually change depending on the policies under which programs are running. Nevertheless, the government emphasized that it will be introducing tax incentives to accelerate the decarbonization of the energy sector.