While Japan’s government is betting on floating wind power to be a key driver in renewables expansion in order to achieve 2040 emissions and clean energy targets, industry players are asking for new technical, economic and regulatory frameworks to invest in the sector.

On February 18, METI announced approval of the recently drafted Basic Energy Plan proposal, stating the goal of 40-50% renewable energy of the national energy mix by 2040, with wind power, both onshore and offshore, expected to account for up to 8%. While this is a small portion, it requires dozens of GW of new capacity. Japan has less than 6 GW of wind power installed today with offshore wind a tiny fraction of that.

Industry insiders expect floating wind projects to be included in annual auction rounds within three years.

Recent events at home and abroad are clouding the outlook for the offshore wind sector with most consultancies revising down their forecasts for capacity rollouts during this decade. And while companies look to the next phase of offshore wind’s development – through floating turbines – many are still struggling with the costs of the current phase. Earlier this month, a Mitsubishi Corp-led consortium claimed it cannot cover project costs for its fixed-bottom projects in Japan without further state financial assistance. If these projects stall, it could create a domino effect, delaying others scheduled for commercialization in the late 2020s.

On that same day when METI made its announcement, developers and industry stakeholders gathered in Tokyo for the 14th Asia Offshore Wind conference to discuss the sector’s issues. The talks continued into Smart Energy Week and adjacent events in Tokyo. 𝐽𝑎𝑝𝑎𝑛 𝑁𝑅𝐺 reports on the latest mood and discussion points.