Key Facts
• 2021: Mitsubishi-led consortium won bids for three offshore wind projects in Japan.
• Projects located off Noshiro, Yurihonjo (Akita Prefecture), and Choshi (Chiba Prefecture).
• Bid electricity prices: ¥11.99–¥16.49/kWh, far below the ¥29/kWh government cap.
• Target completion: Post-2028; delayed due to inflation and yen depreciation.
• FY2025: Mitsubishi reported ¥52.4 billion loss in offshore wind sector.
• February 2025: Project plans reset to “zero base”; Chiba construction postponed.
• Mitsubishi: “Reevaluating feasibility; will announce future plans promptly.”
• Offshore wind seen as key to renewable energy strategy; now requires re-bidding.
• National energy strategy revision deemed inevitable.
Summary
Mitsubishi Corporation and its consortium are reassessing their offshore wind power projects in Japan, citing rising construction costs due to inflation and yen depreciation. Initially awarded in 2021, the projects aimed to deliver electricity at competitive rates, significantly undercutting government price caps. However, delays and financial losses, including a ¥52.4 billion deficit in FY2025, have forced Mitsubishi to reset plans and postpone construction. Offshore wind, once a cornerstone of Japan’s renewable energy strategy, now faces uncertainties, with re-bidding likely required. Mitsubishi has committed to reevaluating project feasibility and providing updates promptly. This development underscores the need for a broader review of Japan’s energy strategy.
