The Japanese Government has drafted a new bill which will set nationwide rules for offshore wind developments in national waters, which could be a much-needed boost for the offshore wind industry.
As the cost of offshore wind falls dramatically in Europe, demonstrated recently with the zero subsidy result in the Netherlands auction earlier this week, developers are seeking new opportunities to build a healthy pipeline of projects internationally.
East Asia has caught their attention. Taiwan has already set a goal to develop 5.5GW of offshore wind capacity by 2025, which has sparked a surge in interest over the last year. Now Japan is preparing for its moment in the sun as the government announces a new bill to bring clarity to interested investors.
Japan has been pursuing offshore wind ambitions since 2011 when the closure of a large proportion of its nuclear plants created an essential refocus away from nuclear towards renewable energies. In the interim, Japan has relied on liquidified natural gas (LNG) to meet its energy needs. In fact, today Japan is the world’s largest LNG importer, which comes at a high price and has created an urgent need to build the countries renewable energy generation capabilities.
Japan has the seventh longest coastline in the world with nearly 30,000km, which coupled with good wind resource means increasing its offshore wind capacity is a practical solution to not only improve its energy security, but also reduce Japan’s exposure to expensive imported LNG.
However, as the European market has shown an offshore industry takes more than interest to get off the ground and the demonstration of political will is critical by establishing a supportive and consistent regulatory and policy environment.
For further details about the implications of the new bill on the Japanese offshore wind market, please contact: email@example.com