Norwegian energy company Equinor has submitted a bid in Japan's latest state auctions to develop an offshore wind farm in partnership with other companies, aiming to establish a presence in the emerging market. This bid highlights the interest of some wind players in Japan, despite frustrations over stringent bidding regulations and previous auction rounds being dominated by Japanese firms.
Japan, which has set an ambitious target of developing up to 45 GW of offshore wind capacity by 2040 from its current capacity of less than 1 GW, is looking to position itself as a major player in the offshore wind sector. However, while Equinor pursues opportunities in Japan, it has opted to withdraw from offshore wind projects in Vietnam, Spain, Portugal, and France.
The recent auction offered two sites totaling 1 GW in the northern prefectures of Aomori and Yamagata. Bidding closed in July, with results expected by the end of the year. Equinor's bid was submitted in a consortium with unnamed Japanese companies, alongside other international bidders.
Despite challenges, including a lack of larger-scale project auctions that have discouraged some developers, discussions are underway to modify existing rules that limit development. Industry experts are exploring potential adjustments to bidding regulations, such as allowing turbine supplier changes and inflation adjustments for energy sale prices.
In a related move, Equinor recently acquired a 10% stake in Danish offshore wind power giant Orsted, which has deprioritized its Japan operations. Meanwhile, local industry representatives, including Kiyoshi Doi from Eneos, are advocating for legal changes to permit the use of non-Japan-flagged installation vessels at offshore wind sites, facilitating the involvement of international resources.
