Japan's Mitsubishi Corporation has announced its withdrawal from three Japanese offshore wind power projects, citing significant changes in the global business environment, including tighter supply chains, rising inflation, and volatile interest rates. A Mitsubishi-led consortium won the first state auctions for these three wind parks, located in Chiba and Akita prefectures, in 2021. The projects had a combined projected capacity of 1.8 GW and were expected to start operations between 2028 and 2030.
The Japanese Ministry of Economy, Trade and Industry (METI) has not yet responded to requests for comment on whether the vacated sites will be re-auctioned. Meanwhile, Japan’s Industry and Land ministries have proposed extending offshore wind project leases from 30 to 40 years to help developers better manage rising construction costs and complete their projects. This proposal was submitted to a joint expert panel of METI and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).
Denmark’s Ørsted exited the Japanese market in 2024 as part of a global restructuring, while the UK’s Shell has recently reduced its offshore wind team in Japan amid a broader scale-back of its low-carbon operations.
Japan aims to expand its offshore wind capacity to 10 GW by 2030 and 45 GW by 2040, up from just 0.3 GW at the end of 2024.