Author: Power Peak Digest Team Pub Date: February 6, 2025
Mitsubishi Corporation is reassessing its business plans for offshore wind power generation projects in Japan due to changes in the macroeconomic environment caused by the COVID-19 pandemic and the Ukraine crisis. These challenges include inflation, a weaker yen, strained supply chains, and rising interest rates.
Through a consortium led by its subsidiary Mitsubishi Corporation Offshore Wind, the company has been developing three offshore wind projects in Japan since being selected as the operator in the country’s first state-run offshore wind auctions in December 2021.
The projects are located offshore Noshiro City, Mitane Town, and Oga City in Akita Prefecture; offshore Yurihonjo City in Akita Prefecture; and offshore Choshi City in Chiba Prefecture. The combined capacity of these projects is 1.76 GW, with operations expected between 2028 and 2030.
Mitsubishi stated that it is currently reviewing the business plans for these projects in light of the economic shifts and will decide on the next steps after thoroughly examining the results.
Offshore wind power is seen as a key part of Japan’s strategy to address its low energy self-sufficiency and reduce greenhouse gas emissions. The country aims to achieve 10 GW of offshore wind capacity by 2030 and 45 GW by 2040.
Chubu Electric Power, in partnership with Mitsubishi through its unit C-Tech, is working to enhance profitability while evaluating the feasibility of its offshore wind projects. The company reported a loss of ¥18 billion ($116 million) on the Mitsubishi-led projects between April and December 2024, due to rising construction costs and other economic pressures. As reported by Reuters, Chubu Electric’s net profit for the same period dropped by 53% to ¥167.2 billion.