Join our crew and become one of the 104,719 members that receive our newsletter.

offshore wind turbine

Japan Launches Auction for Floating Offshore Wind Farm

Bloomberg
Total Views: 67
June 24, 2020

File Photo

By Aya Takada (Bloomberg) –Japan officially launched its effort to seek participants in the nation’s first auction for a floating offshore wind farm.

The nation’s economy and land ministries will select the winner of the auction around June 2021 to construct the floating turbines off the southern prefecture of Nagasaki, according to a joint statement on Wednesday. The deadline for bidding in the auction is Dec. 24.

Winning bidders will be chosen after consulting with experts on the feasibility and efficiency of the proposed business plans, according to a spokesman of the Ministry of Economy, Trade and Industry.

The capacity of the floating farm must be a minimum of 16.8 megawatts. The feed-in tariff for the farm is set at 36 yen ($0.34) per kilowatt hour.

The auction will be the first under Japan’s offshore wind promotion law, which took effect April 1, 2019, as the nation aims to achieve the target of boosting renewable energy to 24% of its total power generation by 2030, from about 17% in 2019.

Developing affordable floating offshore wind technology is seen as key to meeting those goals, as available land is scarce and Japan doesn’t have the shallow coastal areas that have allowed traditional offshore turbines to prosper in places like Denmark and the U.K.

BloombergNEF expects Toda Corp. to win the auction as the company is already planning to develop a 22-megawatt floating project in the same location, and the tender process gives preference to existing developers with good community ties and offshore wind experience, according to analyst Isshu Kikuma.

© 2020 Bloomberg L.P

Unlock Exclusive Insights Today!

Join the gCaptain Club for curated content, insider opinions, and vibrant community discussions.

Sign Up
Back to Main
polygon icon polygon icon

Why Join the gCaptain Club?

Access exclusive insights, engage in vibrant discussions, and gain perspectives from our CEO.

Sign Up
close

JOIN OUR CREW

Maritime and offshore news trusted by our 104,719 members delivered daily straight to your inbox.

gCaptain’s full coverage of the maritime shipping industry, including containerships, tankers, dry bulk, LNG, breakbulk and more.