Key Facts
• August 27, 2025: Mitsubishi Corporation announced withdrawal from three offshore wind projects.
• Locations: Noshiro, Mitane, and Oga (Akita), Yurihonjo (Akita), and Choshi (Chiba).
• Combined power output: Approximately 1.7 million kilowatts.
• Initial bid (2021): Secured all three areas in Japan’s first offshore wind auction.
• Planned electricity price: ¥11.99–¥16.49 per kWh, far below the ¥29 cap.
• Reasons for withdrawal: Construction costs doubled due to inflation and yen depreciation.
• Losses: ¥52.4 billion recorded for fiscal year ending March 2025.
• Offshore wind: Key to Japan’s renewable energy goals, aiming for 4–8% by 2040.
• Impact: Re-tendering required; global material and labor costs remain high.
• Government energy strategy may face revisions due to project challenges.
Summary
Mitsubishi Corporation has decided to exit three offshore wind power projects off the coasts of Chiba and Akita, citing a significant rise in construction costs driven by inflation and yen depreciation. The projects, initially secured in 2021, were expected to generate a combined 1.7 million kilowatts of power at competitive electricity prices. However, costs have more than doubled, leading to a ¥52.4 billion loss for the fiscal year ending March 2025. This withdrawal highlights challenges in Japan’s renewable energy strategy, which aims to increase wind power’s share to 4–8% by 2040. The affected areas will require re-tendering, but high global material and labor costs cast uncertainty on finding replacement operators. The government may need to reassess its energy policies to address these obstacles.
