Japan Designates Hokkaido Sites for Offshore Wind Auctions
July 30, 2025
Japan's industry and land ministers on Wednesday designated Matsumae and Hiyama, areas off the northern island of Hokkaido, as promotion zones for upcoming offshore wind power auctions, aiming to bolster the country's renewable energy goals.
The government will develop guidelines for the use of the zones and launch a public tender to choose operators for energy projects, the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) said in a joint statement. However, no timeline for the next auction was provided.
Japan aims to have 45 gigawatts of offshore wind capacity by 2040, which is essential to cutting the country's reliance on imported fossil fuels for power generation, reducing its carbon dioxide (CO2) emissions and bolstering national security.
But progress has stalled following three major rounds of auctions. Trading house Mitsubishi Corp 8058.T, the winner in the government's first major auction in 2021, cautioned in February that surging costs had forced it to review its plans.
Japan is likely to sweeten terms for developers to build a massive offshore wind farm sector, industry insiders say, as it looks to put its energy ambitions back on track against a worldwide slump of projects hit by soaring costs and delays.
(Reuters)
