Key Players in Japan’s Offshore Wind Market
Japan’s offshore wind market is rapidly emerging as a key sector in the country’s renewable energy landscape. As Japan committed on the 6th Strategic Energy Plan (2021), renewable energy has been supported to achieve carbon neutrality by 2050. Japan is aiming to achieve 30-45 GW from offshore wind generation for fixed-bottom and floating wind technologies by 2040.
The Japanese government has been supporting this sector by providing any needs to achieve the goal, such as robust policies, incentives, and industry frameworks. One notable government support is the Feed-in-Tariff (FIT) scheme that was introduced in July 2012 and has been reviewed until 2020. This incentive enables electricity utilities to pass on costs for the purchase of electricity generated by renewable energy resources to their customers.
Japan also established the “Act on Promoting Utilization of Sea Areas for Development of Power Generation Facilities Using Maritime Renewable Energy Resources” to regulate the lease agreement of maritime areas. Then, “The Power Grid Establishment Master Plan” to achieve offshore wind power capability. The government also supports this sector with other incentives, such as regulatory review, streamlining of their safety review procedures, clarifying criteria for permission to leave the fixed-bottom wind turbine in place, and relaxing the criteria related to the installation of the aircraft warning light on wind power generation facilities.
In addition to providing incentives, the Japanese government has formulated a comprehensive strategy to achieve its targets. By regulatory mechanism, Japan’s ministries and agencies formulated a blueprint of energy policies and supply-demand mechanisms called “Green Growth Strategy Through Achieving Carbon Neutrality in 2050”. This strategy puts offshore wind power as one of 14 promising fields that are essential to achieve carbon neutrality. The strategy emphasizes energy policy and an industrial policy perspective, while reducing the costs by cultivating Japan’s offshore wind power industry and strengthening competitiveness.
This thriving sector presents significant opportunities for foreign companies. The Japanese government is keen to encourage the expansion of the offshore wind market in Japan, and is therefore focusing its efforts on foreign companies in this regard. The government has also provided incentives by reducing the cost of offshore wind, including growth of a competitive and resilient supply chain. With government support and an expanding market, Japan’s offshore wind industry is poised to attract global investment and drive sustainable economic growth.
Overview of Japan’s Offshore Wind Market
Japan’s offshore wind market is a cornerstone of its renewable energy strategy, aiming for 10 GW under development by 2030 and 30-45 GW by 2040. The 10 GW for the 2030 target is for approved projects under development rather than operational capacity. The government has targeted 5,7 GW of offshore wind power operational capacity by 2030. At the end of 2023, cumulative installed capacity of wind power reached 153,5 MW, consisting of 148,5 MW of fixed-bottom installation and 5 MW of floating wind installation. This achievement marks its position as a key offshore wind player in the Asia-Pacific region.
To accelerate offshore wind development, the Japanese government has implemented several key initiatives. In July 2012, the government introduced the feed-in tariff (FIT) program, following the Fukushima nuclear accident in March 2011. This program provides incentive for producers of renewable electricity, including offshore wind. In July 2016, the government amended “The Port and Harbor Act” that enables developers to build and operate wind farms in port areas for up to 20 years.
Then, in April 2019, the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure and Transportation (MLIT) designated “promotion zones” for offshore wind projects within Japan’s territorial waters. This step is under the “Act on Promoting the Utilization of Sea Areas for the Development of Marine Renewable Energy Power Generation Facilities.” Japan’s offshore wind potential is concentrated in key regions. In October 2023, the ministries designated 10 promotion zones around Japan. This promotion zone has different capacities and marking milestones in the county’s renewable energy journey. Akita prefecture has the biggest capacities with almost 2 million kW since it has four promotion zones. Nagasaki has a capacity of almost 450.000 kW and Chiba almost 400.000 kW. In February 2023, Japan’s first large-scale offshore wind project began commercial operation at Noshiro Port in Akita Prefecture with a total capacity of 140 MW and comprising 33 turbines. This project is capable of providing enough energy to power around 120.000 homes.
Key Players in Japan’s Offshore Wind Sector
Japan’s offshore wind sector has a dynamic ecosystem involving diverse players who each contribute to the industry’s development and success in different ways.
The first group of key players are developers and operators that are typically led by global energy giants, domestic utilities, and technology-driven companies. Furthermore, engineering, procurement, and construction (EPC) contractors help ensure the efficient delivery of infrastructure. Government and regulatory bodies on the other hand are key for providing policy guidance, permitting processes, and incentive to accelerate project development. Industry associations and R&D institutions drive innovation, research, and policy alignment. In addition, investors and financing institutions are key to ensure financial backing. The following sections dive into each of these groups.
Offshore Wind Developers and Operators
Marubeni Corporation
Marubeni is actively involved in offshore wind projects across Japan, including the Akita Noshiro Offshore Wind Project. In March 2021, Marubeni established the Marubeni Long-Term Vision on Climate Change and has since expanded its portfolio in Akita and Aomori.
Then, in December 2024, Marubeni with a special purpose company, Yamagata Yuza Offshore Wind LLC, and another company was appointed to operate an offshore wind farm off the coast of Yuza Town in Yamagata Prefecture, Japan. This project involves construction, maintenance, and operation of a 450.000 kW bottom-fixed offshore wind farm.
Mitsubishi Corporation RtM Japan Ltd.
Mitsubishi Corporation is involved in several offshore wind projects in Japan. They committed to achieving Japan’s carbon neutral society by 2050. They are part of a joint venture developing the Hibiki Offshore Wind Project in the Yamaguchi Prefecture and are working to expand their wind farm activities in the Seto Inland Sea region.
Sumitomo Corporation
Sumitomo has partnered with Iberdrola to develop offshore wind farms, notably the Noshiro Offshore Wind Farm in the Akita Prefecture. Since 2018, Sumitomo has been conducting environmental impact assessments, seabed surveys, wind condition studies, and other research to ensure project success while collaborating with local government and fishermen.
They also have a long track record of developing/operating wind power stations both inside and outside Japan, Venti, Kato Construction, JED, and Narita Construction, which are locally engaged in the wind power generation business in Akita Prefecture.
Tokyo Electric Power Company (TEPCO)
TEPCO is heavily involved in Japan's offshore wind development, spearheading projects like the Fukushima Floating Offshore Wind Farm, the first large-scale floating wind farm in Japan. TEPCO also collaborates with Sumitomo on Japan’s largest offshore wind farm, Choshi Offshore Wind Farm.
J-Power (Electric Power Development Company)
J-Power is involved in multiple offshore wind projects in Japan, including the Goto Islands Offshore Wind Project in Nagasaki Prefecture. They are also part of the consortium developing the Kyushu Offshore Wind Power Project and have announced plans for new wind farms in Nagasaki and Kagoshima. In October 2024, J-Power created and patented Flexible Tripile, a seismic-resistant foundation for bottom-fixed turbines, reflecting Japan’s unique geographical needs.
Orsted Japan
As part of its global expansion, Orsted is actively developing several offshore wind projects in Japan, including the Choshi Offshore Wind Project, a 1.000 MW offshore wind power project. This project is expected to commence from 2026, subsequent to that it will enter into commercial operation by 2030. Additionally, they are exploring floating wind opportunities in Fukushima and Akita, leveraging their global expertise in offshore wind.
Iberdrola
Through a partnership with Sumitomo, Iberdrola is focusing on the Akita Prefecture and is developing several large offshore wind farms in the Akita Noshiro area. Iberdrola also plans to expand in the Seto Inland Sea and Nagasaki regions. In March 2024, Iberdrola won rights for a 375 WM offshore wind farm in Japan, located in Happo Town and Noshiro City in Akita Prefecture. This project featured a fixed-bottom offshore wind farm with 25 monopile-foundation, each with 15 MW of capacity. The project will begin construction in 2026 and the wind farm is due to become operational in 2029.
Equinor Japan
Norwegian energy giant Equinor is developing offshore wind projects in Japan, including the Ulsan Offshore Wind Project in Fukushima Prefecture, using floating wind technology. They are also exploring opportunities for floating wind farms off the coasts of Akita and Aomori.
SSE Renewables
SSE is working in partnership with Japan's Marubeni Corporation on the Akita Offshore Wind Farm in the Akita Prefecture for 30 MW floating offshore wind. The project will be one of the deepest offshore wind developments globally, situated in waters up to 400 m deep. They are also involved in a floating wind farm project off the coast of Fukushima in collaboration with other Japanese and international partners.
Engineering, Procurement, and Construction (EPC) Contractors
Hitachi Ltd.
Hitachi is supplying critical components for offshore wind farms, including grid connection systems. They are actively involved in the Fukushima Floating Offshore Wind Farm and are working on turbine and electrical infrastructure for offshore projects in Akita and Chiba Prefecture. In July 2024, Hitachi sited off the 5 MW wind turbine as part of Fukushima Forward floating offshore wind farm demonstrator. This turbine will make the second largest capacity in the world behind the 7 MW that was already installed in the Fukushima Forward project.
Mitsui Engineering & Shipbuilding Co., Ltd.
Mitsui Engineering is involved in the design and construction of offshore wind turbines and related infrastructure. They are working on the Nagasaki Offshore Wind Farm and providing support for several other projects in Kagoshima and Aomori Prefectures.
JFE Engineering Corporation
JFE Engineering specializes in offshore substation construction and other infrastructure services for offshore wind farms in Japan. They are involved in the Sasebo Offshore Wind Farm in Nagasaki and have contributed to the installation of turbines in Akita and Chiba Prefectures.
Daewoo Shipbuilding & Marine Engineering
Daewoo collaborates with Japanese companies to design and construct floating wind platforms for projects off the coast of Fukushima and Akita. They are working on the Fukushima Floating Wind Farm, focusing on the design of floating turbine platforms. With another company, Daewoo working on offering for the floating offshore wind substation market for both deep and shallow waters. In 2022, Daewoo also developed ship wind-assisted propulsion systems, including a rotor sail solution, and fuel saving device technology.
Government and Regulatory Bodies
Ministry of Economy, Trade and Industry (METI)
METI plays a pivotal role in advancing offshore wind by designating promotion zones and facilitating licensing processes. METI has set ambitious targets, aiming for 10 GW of offshore wind capacity by 2030. The ministry is actively facilitating offshore wind licensing, with projects in Akita, Fukushima, and Chiba receiving government support.
Agency for Natural Resources and Energy (ANRE)
ANRE is an affiliated agency of the METI and responsible for most of the electricity-related policies, including the drafting of the Energy Basic Plan and the energy mix plan, securing the stable supply of electricity nationwide by the stable supply of fuel and other resources, and promoting the installation of renewable energy power plants. ANRE is also involved in the allocation of offshore wind sites and the coordination of regulatory processes. The agency has played a key role in the development of the Akita Noshiro and Fukushima Floating Offshore Wind Farm projects.
Japan Wind Power Association (JWPA)
JWPA advocates for wind energy development in Japan and provides information and networking opportunities for stakeholders. They are heavily involved in supporting the offshore wind industry, particularly in helping align policy and regulatory frameworks for large-scale projects like those in Akita and Nagasaki.
Japan Offshore Wind Promotion Association (JOWPA)
JOWPA focuses specifically on promoting offshore wind in Japan. They have provided support for the Akita Noshiro offshore wind farm and collaborate with both local and international companies to facilitate project development across regions like Akita, Aomori, and Chiba.
National Institute of Advanced Industrial Science and Technology (AIST)
AIST conducts R&D focused on improving offshore wind technology, especially floating wind turbines. They have been involved in developing technologies for floating wind farms, particularly those in Fukushima and Akita.
Industry Associations
Japan Wind Energy Association (JWEA)
JWEA is a key player in promoting wind energy across Japan. They are involved in supporting the development of both offshore and onshore wind farms, with particular emphasis on offshore projects in Akita and Fukushima Prefectures.
Supporting the development of both onshore and offshore wind energy in Japan, with a focus on fostering collaboration and policy alignment.
Japan Offshore Wind Energy Industry Forum (JOWIF)
JOWIF brings together stakeholders for the advancement of offshore wind energy. They provide a platform for collaboration on projects like the Akita Noshiro Offshore Wind Project and Fukushima Floating Wind Farm.
Renewable Energy Institute (REI)
REI advocates for the growth of renewable energy in Japan, providing policy recommendations and conducting research. They have been a strong supporter of offshore wind development, particularly in the Fukushima region, which is seen as a hub for floating wind technology.
Research and Development Institutions
University of Tokyo – Energy Research Center
The University of Tokyo conducts groundbreaking research on offshore wind, including floating turbine technology, which is crucial for Japan’s deep-water locations like Fukushima. They are involved in testing and advancing offshore wind technologies for both commercial and experimental projects.
Kyushu University – Center for Marine Environmental Studies:
Kyushu University is conducting research on the environmental impact of offshore wind projects and developing new technologies to improve turbine efficiency. Their work is important for offshore projects in Kyushu and Nagasaki.
Investors and Financing Institutions
Development Bank of Japan (DBJ)
DBJ provides financing for large-scale offshore wind projects. They are supporting projects like the Akita Noshiro Offshore Wind Farm and other offshore initiatives in Akita and Chiba Prefectures.
Japan Bank for International Cooperation (JBIC)
JBIC has been instrumental in financing offshore wind projects with international partners. They are supporting projects such as the Fukushima Floating Wind Farm and the Akita Offshore Wind Project, which involve foreign investment and technological partnerships.
Why Japan is an Attractive Market for Foreign Companies
Japan presents a compelling opportunity for foreign companies in the offshore wind sector, driven by four key factors: strategic location, government support, technological innovation, and collaboration opportunities. Japan’s strategic location offers significant potential for offshore wind development. With a long coastline and favorable wind conditions in regions such as Akita and Fukushima, Japan provides an ideal environment for expanding offshore wind operations. The Japanese government has designated 10 promotion zones that have massive development potential in offshore wind. In addition, Japan has the world’s 6th largest sea space and has offshore wind potential estimated to be 1.600 GW. Realistic offshore wind potential would be around 600 GW.
The next factor is strong government support. The government has implemented policies and set ambitious targets, such as achieving carbon neutrality by 2050. Offshore wind is a crucial component of this vision, with a goal to develop 10 GW of capacity by 2030 and 30-45 GW by 2040. These policies create a stable framework and demonstrate Japan’s commitment to accelerating renewable energy deployment.
Technological innovation makes it particularly attractive for companies specializing in advanced solutions. Japan is focusing heavily on advanced technologies like floating wind turbines. These advancements are supported by extensive research development and collaboration with universities, research institutions and bodies to support continuing development in offshore wind technologies.
Finally, there are abundant opportunities for collaboration and partnership with local firms and government-backed initiatives. Initiatives such as FLOWRA highlight the potential for big opportunities for collaboration that leverage local expertise and resources. These collaborations not only facilitate market entry but also enable foreign companies to navigate regulatory requirements and contribute to Japan’s offshore wind growth.
How Foreign Companies Can Enter Japan’s Offshore Wind Market
Japan’s clear strategy, ambitious goals, and supportive policies make its offshore wind sector highly promising. Entering Japan’s offshore wind market is the best opportunity for foreign companies. Additionally, Japan actively seeks international partners to drive the sector forward. Here are key steps foreign companies can take to enter Japan’s offshore wind market.
Partnering with Japanese Developers
Collaboration with local developers and operators is a strategic way to enter the Japanese market. Leading companies like Marubeni, Mitsubishi, and Orsted Japan are actively developing major projects across the country. For example, Marubeni leads the Akita Noshiro Offshore Wind Project, while Mitsubishi is involved in the Hibiki Offshore Wind Project. Joint ventures, such as the partnership between JERA and BP to form JERA Nex bp, highlight the opportunities for foreign companies to collaborate on large-scale projects in Japan and beyond. By aligning with established players, foreign companies can benefit from local expertise and established networks.
Leveraging Government Incentives
The Japanese government has supported offshore wind development, including schemes like the feed-in tariff program that give incentives to producers of renewable energy, make policies and initiatives to promote offshore wind like The Port and Harbor Act, Public-Private Council, and expansion into exclusive economic zones (EEZ). Those policies and initiatives make Japan’s offshore wind market attractive to foreign companies. Foreign companies can leverage these chances to lower entry barriers and secure long-term growth in Japan’s offshore wind sector.
Navigating Regulatory Frameworks
Beside leveraging government incentives, foreign companies have to understand the regulatory framework for entering the market. Key processes, managed by METI and ANRE, include obtaining approvals for project construction and electricity generation business plans. For instance, developers must secure formal METI/MLIT approval through an auction process, followed by site occupancy permits for designated promotion areas. Familiarity with these requirements ensures compliance and smooth project implementation.
Technological Collaboration
Japan’s offshore wind market offers opportunities for foreign companies to address challenges through technological innovation. As offshore wind projects have become a strategic priority for Japan, the sector has made notable progress, but key challenges persist. These include technical and supply chain limitations, as well as natural risks such as earthquakes, typhoons, and the integration of large-scale wind farms into the national grid. Japan’s offshore wind supply chain is still relatively underdeveloped compared to more mature markets, with limited manufacturing capacity for key components and no major domestic offshore wind turbine producers.
Foreign companies can play a vital role in this space by collaborating with Japan’s leading research institutions to develop innovative solutions for floating wind. For example, J-Power, in partnership with the University of Tokyo, has developed a new foundation for bottom-fixed offshore wind turbines, specifically designed to accommodate Japan’s unique topography and incorporate seismic isolation features.
Conclusion
Japan’s offshore wind market is positioned for significant growth, driven by ambitious government targets, robust support frameworks, and innovative advancements in technology. With plans to achieve 30-45 GW of offshore wind capacity by 2040, the sector offers immense opportunities for both local and international stakeholders. This burgeoning market, supported by promotion zones and strategic policies, is set to play a pivotal role in Japan’s journey toward carbon neutrality by 2050.
For foreign companies, now is the ideal time to explore opportunities in Japan’s offshore wind sector. Strategic partnerships with local developers, a clear understanding of the regulatory landscape, and leveraging government incentives are key to unlocking success in this promising market.
GlobalDeal, a trusted expert in market entry into Japan, is ready to assist companies in navigating this landscape. From finding reliable business partners to understanding local regulations, GlobalDeal provides the expertise needed to establish a strong foothold in Japan’s offshore wind industry. Ready to partner with leaders in Japan's offshore wind market? Contact us for insights and collaboration opportunities!