The government plans to expand public support for offshore wind power projects as costs increase rapidly and threaten the nation’s renewable energy goals.
A government panel on Wednesday proposed making offshore wind projects eligible for long-term decarbonization power auctions — a public financing mechanism that helps cover construction and maintenance costs. The measures would likely apply to projects led by companies including Jera and Mitsui & Co., which won bids in 2023 and 2024, according to documents from a committee within the Ministry of Economy, Trade and Industry.
The move comes as the global offshore wind industry falters on high interest rates and expensive raw materials. Mitsubishi, a major Japanese trading house, said in late August that it would withdraw from several projects won via a previous auction, citing escalating construction costs.
Offshore wind projects are currently excluded from the decarbonization auction system because they receive separate public support. However, ballooning expenses have intensified calls to bring them under the broader framework.
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