Key Facts
• Mitsubishi Corporation consortium withdrew from two offshore wind power sites in Akita.
• Withdrawal announced on August 27, citing global inflation and rising construction costs.
• Legal council meeting held on September 4 at Akita Prefectural Office.
• Agreement reached to promptly reopen bids for both sites.
• Affected areas: Noshiro City, Mitane Town, Oga City, and Yurihonjo City offshore.
• Original project selected in 2021 under Japan’s first offshore wind power bid.
• Mitsubishi Corporation attempted cost-saving measures, including larger turbines and fewer units.
• Yurihonjo City Mayor requested improved business conditions to prevent future withdrawals.
• Ministry of Economy, Trade, and Industry aims to report progress by year-end.
• Fixed-price electricity sales to major power companies were a condition of the initial bid.
Summary
Following Mitsubishi Corporation’s withdrawal from two offshore wind power projects in Akita due to rising global construction costs, a legal council meeting on September 4 resolved to reopen bids promptly. The projects, initially awarded in 2021, included sites off Noshiro City, Mitane Town, Oga City, and Yurihonjo City. Mitsubishi Corporation cited efforts to reduce costs, such as using larger turbines, but ultimately decided to exit. Yurihonjo City Mayor emphasized the need for fairer systems and improved business conditions to prevent future withdrawals. The Ministry of Economy, Trade, and Industry plans to address these issues and provide updates by the end of the year. The projects originally required fixed-price electricity sales to major power companies.
