Japan prioritizes offshore wind energy, showing dedication to sustainable…

From Puerto Octay, overlooking Llanquihue Lake in southern Chile, the setting for Gaspar Antillo’s film Nobody Knows I’m Here, I try to examine the mind of my friend and colleague, Germán Toro Ghio.

‘In the divine vineyard, you choose your own path is a beautiful metaphor.’

As we make our way along the journey of life, some of us choose to travel in the fast lane in vehicles with sleek engines and plush seats, while some of us prefer slower speeds and budget-friendly tolls on scenic routes. Some of us endure crowded buses with loud music or navigate challenging terrains, facing harsh weather conditions and wildlife.

Germán’s stories feature individuals who have chosen unconventional paths in the journey of life: some of them use elevators, rappel down cliffs, or fly in contraptions. His explorations endlessly take his viewers on exciting adventures, from the unease of a Moscow hotel to the excitement of jungle escapades in Nicaragua, from brilliantly-lit worlds pulsing with electricity to dark worlds immersed in infinite blackouts.

Finally, Germán tantalizes us with an eclectic mix in his creative pot, leaving us eager for more of his daily works. His narratives enrich and untangle the most complex history by shedding light on experiences beyond the battlefields and palaces.

Juan Forch

  *JUAN FORCH IS A POLITICAL SCIENTIST, FILMMAKER, WRITER, PUBLICIST AND THE CO-CREATOR OF THE INFLUENTIAL "NO" POLITICAL CAMPAIGN, A SIGNIFICANT MILESTONE IN THE HISTORY OF POLITICAL COMMUNICATION. HIS UNIQUE CREATIONS HAVE INSPIRED AN OSCAR-NOMINATED FILM BY PABLO LARRAÍN FEATURING GAEL GARCÍA BERNAL, SOLIDIFYING HIS LEGACY AS A POLITICAL MARKETING MASTERMIND.

Monday thought…

Last year in the 5th edition of Japan Energy Wind, industry experts recognized the vast potential of offshore wind development, showcasing significant promise for Japan’s renewable energy goals. The country has ambitiously targeted installing up to 45 GW of offshore wind power by 2040 to meet its clean energy objectives. With an estimated long-term potential for offshore wind power reaching around 1,100 GW, the region demonstrates a wealth of untapped opportunities for expanding renewable energy sources.

Unfortunately, the bidding process is known for its complexity and lengthy duration, spanning a period of 6 to 8 years. This illness remains a prevalent and widespread issue on a global scale. Institutional investment plays a crucial role in fueling industry growth, as it provides the necessary financial support for companies to thrive. Despite its benefits, raising capital in this sector remains a challenging endeavor primarily due to the inherent risks associated with construction projects.

In Japan’s second round of offshore wind tenders, careful consideration of the new rules, critical issues like pricing, and point allocations is essential. The fate of floating wind energy in Japan hinges on the removal of the 12 nautical mile restriction. Forecasts predict a flourishing industry beyond 2030. Developers are grappling with obstacles related to port access and efficient vessel logistics, demanding swift resolution to propel project advancements. Effective collaboration among stakeholders, encompassing governments, financial institutions, technology suppliers, and service providers, is paramount for capitalizing on investment prospects and unleashing Japan’s offshore wind capacity to its fullest.

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TOKYO, March 15 (Reuters) – A group of Japanese energy firms including Mitsubishi’s wind power unit, JERA and Tokyo Gas, have set up an association to boost the development of floating offshore wind farms and jointly create technology, they said on Friday.

Japan aims to become a major offshore wind power producer, with the government targeting 10 gigawatt (GW) projects by 2030 and up to 45 GW by 2040 as part of its decarbonisation push, for which floating offshore wind is essential.

The group of 14 companies said they have set up the Floating Offshore Wind Technology Research Association to realize commercialisation of large-scale floating offshore wind farms in a wide area by jointly developing technology and creating international standards with overseas organizations.

Floating offshore wind power is seen as a way to ensure Japan has a stable and sustainable energy supply and its development will also stimulate the local economy and promote Japanese industries, the group said in a statement.

Other members include Nippon Telegraph and Telephone’s energy unit, Tohoku Electric Power, Kansai Electric Power and Marubeni Corp’s wind power unit .

The move, first reported by a local media, comes as the Japanese government this week 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 lead global offshore wind energy production alongside China and Britain, transitioning to a zero-emission economy for enhanced energy security.

Although Japanese companies have offshore wind assets in countries from Taiwan to Belgium and Britain, they have yet to build large-scale farms at home.

Japan plans to announce by the end of March the winners of a second major round of offshore wind tenders to build 1.8 gigawatt (GW) of capacity in four areas.

HOW DOES JAPAN PLAN TO BOOST CAPACITY?

Japan’s 136 megawatt (MW) of offshore wind capacity installed by 2022 was a fraction of Britain’s nearly 14 GW and China’s 31 GW, the Global Wind Energy Council says.

It aims to have 10 GW by 2030, with up to 45 GW operational by 2040, as it targets a share of 36% to 38% for renewables in its electricity mix by the end of this decade, compared to about 20% now, in its race to be carbon neutral by 2050.

A Marubeni-led consortium (8002.T), opens new tab launched Japan’s first large-scale commercial offshore wind operations at Noshiro port (84 MW) and Akita port (55 MW) in late 2022 and early 2023.

Danish wind turbine maker Vestas (VWS.CO), opens new tab provided bottom-fixed turbines for Marubeni’s farms.

WHAT WAS THE RESULT OF THE FIRST ROUND?

A Mitsubishi-led consortium (8058.T), opens new tab won all three offshore wind farm auctions in 2021 in the regions of Akita and Chiba, with combined capacity of 1.7 GW and a target start-up date of 2028 to 2030.

00:04Shell scales back 2030 carbon emissions target

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All will have bottom-fixed structures. General Electric (GE.N), opens new tab will make 134 wind turbines, each of capacity 13 MW, to be assembled and maintained by Japan’s Toshiba (6502.T), opens new tab.

The first round spurred interest by foreign companies in entering the Japanese market, among them Denmark’s Orsted (ORSTED.CO), opens new tab, Germany’s RWE (RWEG.DE), opens new tab and Norway’s Equinor (EQNR.OL), opens new tab.

WHAT HAPPENS IN THE SECOND ROUND?

The government wrapped up its six-month auction for another 1.8 GW of capacity in four areas on June 30, with winners set to be announced by the end of March 2024, or even as soon as December.

The revised rules bar companies from revealing intent to bid.

For the second round, the ministry of economy, trade and industry (METI) set a bid price cap of 19 yen per kilowatt hour (kWh), below the first round figure of 29 yen, except for Enoshima, where construction challenges kept the ceiling at 29 yen.

JERA, Japan’s top power generator, said it was running environmental assessments of the Oga-Katagami-Akita project and the Happo-Noshiro project.

Other companies making assessments – an indication of a bid – included Mitsui & Co (8031.T), opens new tab, Osaka Gas (9532.T), opens new tab, TEPCO Renewable Power (9501.T), opens new tab, Itochu Corp (8001.T), opens new tab, Tokyo Gas (9531.T), opens new tab, Marubeni and some foreigners, environmental ministry documents show.

The government is gathering public opinion until Dec. 17 for a third round of auctions to offer 1.05 GW on two offshore wind farms.

WHAT ARE THE PLANS FOR FLOATING OFFSHORE PLANTS?

In 2021, the government selected a consortium of six companies led by Toda Corp (1860.T), opens new tab to build the 16.8 MW Goto floating offshore wind farm in Nagasaki prefecture. It was the only auction bidder for the small project.

In September, Toda and its partners flagged a two-year delay in startup of the Goto project, to January 2026, because of defects in a floating structure.

Japan is preparing a new roadmap for floating offshore wind power by the end of March 2024.

WHAT CONSTRAINTS AWAIT?

METI recommends a domestic share of 60% of the supply chain by 2040. All major global renewable energy companies, from Orsted and RWE to BP, Equinor and Iberdrola, have set up offices in Japan.

GE Renewable Energy (GE.N), opens new tab has teamed with Toshiba Energy Systems & Solutions to make GE’s Haliade-X offshore wind turbines near Tokyo from 2026, turning out about 80 units a year, or 1 GW annually.

The partnership is the sole nacelle supplier for the first round.