On July 17, 2020, the Ministry of Economy, Trade, and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) jointly held the first meeting of the Public-Private Council on the Enhancement of Industrial Competitiveness for Offshore Wind Power Generation. In the meeting, the Council members discussed the state of wind power generation utilization in Japan and the potential challenges for expanding offshore wind power generation in the mid- to long-term.
Japan aims to increase the total share of wind energy generation from the current level of approximately 0.7% to 1.7% by 2030 as part of Japan’s 5th Strategic Energy Plan.[1] Under the Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources, which was enacted in April 2019, METI and MLIT have been making progress in designating sea areas for wind energy projects to achieve this goal.[2]
METI and MLIT established the council to collaborate with industry members to advance the systematic and continuous introduction of offshore wind power generation. The council also seeks to enhance Japan’s industrial competitiveness, build up domestic industrial clusters, and develop the infrastructure environment for the wind power generation industry. The council members consist of Japanese utility companies, including Kyuden Mirai Energy (Headquarters: Fukuoka Prefecture), TEPCO Renewable Power (Headquarters: Tokyo), and other major companies in the manufacturing, construction, and financial sectors.
During the first meeting, the council underscored the importance of enhancing the industrial competitiveness of the offshore wind power sector and reducing costs in order to make offshore wind power one of the main energy sources in Japan. The key measure discussed at the council meeting was to increase the investment in wind power generation. Currently, the lack of certainty in the wind generation market outlook is prohibiting investors from actively engaging in the sector. The council is committed to continue the dialogue with industry members to identify areas for public private collaboration to reduce investment obstacles, and to strengthen infrastructure, R&D, human resources, and public engagement.[3]
[1] The 5th Strategic Energy Plan, which sets Japan's long-term energy policy towards 2050, was approved by the Cabinet on July 3, 2018. It includes Japan’s plans to maintain coal-fired generation to support the nation’s stable energy supply while phasing out inefficient coal-fired power plants.
The English version of the 5th Strategic Energy Plan can be accessed from METI’s website: https://www.meti.go.jp/english/press/2018/pdf/0703_002c.pdf
[2] Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources aims to promote the utilization of wind power generation through measures such as the formulation of basic policies, designating maritime areas as targets of promotion projects, creating a certification system for plans related to the licensed use of such designated maritime areas.
[3] https://www.meti.go.jp/shingikai/energy_environment/yojo_furyoku/001.html