Japan plans to expand its offshore wind portfolio to re-arrange its power generation mix amid the ailing nuclear power generation, aging coal-fired power plants and limited land availability.
With the advancement of offshore wind technology, constant reduction in capital costs and a favorable policy framework can aid the exploitation of the vast available offshore resources and current project pipeline to make it the largest offshore market after China in the Asia-Pacific (APAC) region, says GlobalData.
By 2030, among the APAC wind offshore markets, Japan is likely to become the second largest market behind China and sharing the podium with South Korea.
GlobalData database for Japanese offshore wind depicts presence of a mighty 19GW+ of project pipeline in the development phase.
The Japan Wind Power Association (JWPA) vouches for 10GW of offshore wind by 2030. The current project pipeline is sufficient to realize the 2030 target and beyond.
A positive intent from the government, extension of offshore wind licences and power tariffs are attracting big international players to the Japan’s offshore wind arena. Serious and experienced offshore players such as Orsted, RWE and Northland Power have partnered with the local companies to gain the first mover advantage.
The 10GW target by 2030 will encompass several hurdles and might see a reduced capacity build of 7.4GW, according to the research report.
“Japan is on the cusp of joining the global offshore leaders and to ensure an untroubled expansion, the government needs to create a vibrant sector with favorable policy, resilient supply chain and de-risking the investments in the sector,” Ankit Mathur, practice head of Power at GlobalData, said.