Japan’s offshore wind power capacity is projected to jump from just 59 MW in 2020 to 16.7 GW by 2035, GlobalData said in its report called Japan Power Market Trends and Analysis by Capacity, Generation, Transmission, Distribution, Regulations, Key Players and Forecast to 2035.
Government-backed auctions, streamlined regulations, and investment in port infrastructure are propelling this rapid expansion, making offshore wind one of the fastest-growing technologies in Japan’s power mix.
GlobalData power analyst Mohammed Ziauddin noted that Japan’s limited domestic fossil fuel resources and reliance on imported liquefied natural gas (LNG) create an urgent need for renewable alternatives. “Offshore wind offers a significant opportunity to strengthen energy security while supporting the country’s decarbonization goals,” Mohammed Ziauddin said. The Japanese government has designated offshore wind as a strategic growth sector, with dedicated tenders and reforms to accelerate project development.
Japan’s Sixth Basic Energy Plan calls for renewables to supply 36–38 percent of the power mix by 2030, while the nation targets a 46 percent reduction in greenhouse gas emissions from 2013 levels by 2030 and net-zero emissions by 2050. Solar PV continues to lead renewable generation, and the government is exploring hydrogen and ammonia co-firing to reduce dependence on fossil fuels.
Mohammed Ziauddin added that while Japan must address grid upgrades, financing, and regulatory streamlining, “the expansion of offshore wind, alongside growth in solar PV and hydrogen, highlights Japan’s commitment to reshaping its power sector.” If these challenges are met, Japan is well positioned to balance energy security, affordability, and decarbonization as it moves toward its net-zero targets.
Japan’s offshore wind sector has seen rapid activity over the past year, highlighted by major auction awards, project approvals, and new policy targets.
In December 2024, the government concluded its third offshore wind auction, awarding a 615 MW project off the southern side of Aomori Prefecture to a consortium including JERA, Green Power Investment and Tohoku Electric, and a 450 MW project off Yuza Town in Yamagata Prefecture to a group led by Marubeni and Kansai Electric with BP Iota, Tokyo Gas and Marutaka. These projects plan to use 30–41 Siemens Gamesa fixed-bottom turbines of about 15 MW each.
Total installed wind capacity in Japan, including onshore and offshore, reached about 5,840 MW by the end of 2024, with around 703 MW added during the year. Offshore additions included the Ishikari Bay New Port Offshore Wind Farm, which delivers about 100 MW due to grid constraints.
The government has also unveiled an ambitious target of 15 GW of floating offshore wind by 2040 under its Second Offshore Wind Power Industry Vision, supported by about 123.5 billion yen from the Green Innovation Fund for component technology development and demonstration projects in Akita and Aichi.
Regulatory reforms now allow development in the Exclusive Economic Zone, and auction rules have been revised to improve project viability. However, cost pressures have surfaced: Mitsubishi recently withdrew from three planned projects totaling roughly 1.76 GW in Akita and Chiba, citing rising costs, supply chain issues, inflation, a weak yen, and higher interest rates. The government will re-auction these sites once local community approvals are secured, and Mitsubishi will forfeit its deposit and face a temporary bidding ban.
To strengthen domestic supply chains and reduce dependence on imports, Japan’s Ministry of Economy, Trade and Industry is partnering with manufacturers such as Siemens Gamesa and TDK for turbine and magnet production.
JERA and BP have also formed a joint venture, JERA Nex bp, to consolidate and expand their offshore wind development in Japan. Despite challenges related to grid upgrades, financing, and regulatory complexity, the country is still targeting 10 GW of offshore wind by 2030 and 45 GW by 2040, with floating wind seen as a key driver for future capacity growth.
Baburajan Kizhakedath