Japan to expand offshore wind development into exclusive economic zone

Japan's government on Tuesday approved a draft amendment to existing legislation to allow for the installation of offshore wind power in exclusive economic zones (EEZ), a milestone towards the country's goal of carbon neutrality by 2050.
 

Japan aims to have 10 gigawatt (GW) of offshore wind power projects by 2030 and up to 45 GW by 2040, to replace fossil fuels including coal and liquefied natural gas (LNG) in its energy mix, for which floating offshore wind is essential.

The new legislation would allow wind farms to be installed further out to sea from current territorial and internal waters, a joint statement by the government, the ministry of economy, trade and industry (METI) and the ministry of land, infrastructure, transport and tourism, said.

"Through this bill, we will be able to create stable and large-scale projects in the sea area," Industry Minister Ken Saito told a briefing, adding that the new legislation should accelerate offshore wind expansion.

Global energy companies, from Germany's RWE to Spain's Iberdrola , have been urging Japan to beef up auctions and make investments more attractive, amid soaring costs as competition for suppliers grows worldwide, and to enrol EEZ law changes.

Installation would be permitted if the project met certain criteria, including on marine environment protection, and after public consultations, according to the draft legislation which is yet to be approved by the parliament.

Consent from fishery communities would be essential for projects to be approved, according to Saito, as Japan is an exporter and major marine products consumer at home.

Currently, Japan has less of 0.5 GW of offshore wind power installed and is developing a few floating offshore wind warms, mainly for demonstration purposes.

Industry players are closely watching the EEZ legislation, key for unlocking floating offshore wind development and allowing for it to be part of the state auctions, all three major rounds of which have been bottom-fixed.