Monthly Report

Japan’s third offshore wind auction closes for bids, results expected in December 2024

July 22, 2024
Offshore Wind
Developing offshore wind projects is a critical component of Japan’s transition to renewable energy.

On July 19, 2024, at 5:00 p.m., Japan’s third round offshore wind auction covering two ‘promotion zones’ off the coast of Aomori and Yamagata prefectures closed for bids. The results are expected to be announced in December 2024.

The auction opened on January 19, 2024, with development of projects off the Sea of Japan coast on the southern side of Aomori Prefecture and near Yuza Town, Yamagata Prefecture, available for bidding. In the case of the former, the government sought 600 MW. It sought 450 MW in the case of the latter. In both cases, the feed-in-premium (FIP) price ceiling was set at 18 yen/kWh.

The Ministry of Economy, Trade and Industry (METI) and Ministry of Land, Infrastructure, Transport and Tourism (MLIT), which are jointly responsible for offshore wind auctions run under the Act on Promoting the Utilization of Sea Areas for the Development of Marine Renewable Energy Power Generation Facilities, target June 2030 to April 2031 commissioning for the two areas’ projects.

Japan held its first two auctions under the act in 2021 and 2023, both considerably larger-scale than the third round.

In the first offshore wind auction, just under 1.7 GW across two projects in Akita Prefecture and one in Chiba Prefecture was awarded to consortia led by Mitsubishi. In the second auction, consortia led by JERA, Mitsui & Co., and Sumitomo were awarded just over 1.4 GW worth of projects in Akita Prefecture, Niigata Prefecture, and Nagasaki Prefecture respectively.

The weighted average awarded FIP price was 13.39 yen/kWh in the first auction and 8.68 yen/kWh in the second auction.

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