Four Zones Opened to Offshore Wind Farms Bids

Akihabara News (Tokyo) — The central government began soliciting bids at four additional offshore zones for wind power development, effectively marking the launch of the second round in the process.

Two of the new zones lay off Akita Prefecture, one in Niigata Prefecture, and one in Nagasaki Prefecture. All of them face toward the Sea of Japan where the waters tend to be shallower and thus better facilitate fixed-bottom wind turbines.

Several dozen national and international firms are expected to bid in a highly competitive environment, with June 30, 2023, set as the deadline for submissions.

This round will evaluate bids under a somewhat different set of criteria. In last year’s initial round, evaluation was heavily weighted toward the consortiums which offered the lowest price. While that remains true for this round as well, more consideration will be given to the speed at which the wind farms can be constructed.

Indeed, there was some controversy a year ago when Mitsubishi Corporation-led consortiums swept all three zones awarded last year by offering much lower prices but relatively slow development timelines.

Both rounds are based upon the centralized bidding system established under legislation effectuated in 2019. However, some smaller offshore wind farms are being developed under local government initiatives, such as the 140MW Akita Noshiro Offshore Wind Farm, which has just begun delivering electricity this month, and the 112MW Ishikari New Port project expected to come on line about a year from now.

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