Japan’s first-ever, fixed-bottom offshore wind tenders were swept by a Mitsubishi-led consortium with record low prices. The results caused surprise and even shock in the industry.
Whilst the winning price may become the catalyst for the beginning of competitive pricing of offshore wind power generation in Japan, it may cause challenges for diverse participation in future auctions in a still nascent market.
Now, METI Minister Hagiuda has signaled that the framework to select auction winners may be reconsidered or at least adjusted to accommodate some of the concerns. The minister’s comments, if taken at face value, would require time-consuming changes to regulation; thus, future tenders for offshore wind projects could be affected and even delayed.
Energy experts close to the government have given a mixed reaction to the results announced at the close of 2021, when tenders for all three sites were won by consortiums led by Mitsubishi Corporation and a unit of Chubu Electric.
Details in the full Japan NRG Weekly report…