How Japan can unlock offshore wind potential

It must optimise evaluation criteria, focusing on realistic price limits.

Japan must establish a structured dialogue between the public and private sectors for timely auction reform to unlock its offshore wind potential, according to a Global Wind Energy Council report.

It must also optimise evaluation criteria, focusing on realistic price limits to prevent low, unsustainable bids.

“The current Feed-in Premium scheme should be reviewed and potentially replaced with a Feed-in Tariff or a two-sided Contract for Difference to enhance project financing, whilst also widening access to Corporate Power Purchase Agreements,” the report said.

To foster supply chain development, the government must adopt a Commercial Operation Date-based target, replacing the current pipeline development target, and introduce compensation mechanisms to minimise power curtailment risks.

For long-term market stability, recommendations include improving the central survey model, introducing a two-stage auction model in territorial waters, and streamlining the wind farm certification process.