Building Japan’s Offshore Wind Industry: Actions required of both public and private sectors in light of national vision

1. Introduction Target

The introduction target uses the term introduction, but this case is not limited to completed offshore wind projects; in calculating the 2030 and 2040 figures, the target includes projects that are planned and have received recognition by the government. This fact has potential for misunderstanding among parties involved. Achieving this target alone will not make a meaningful contribution to the attainment of the goal of 46% reduction in greenhouse gas emissions by 2030; additional measures will be required to put the various projects formed into operation as early as possible.

2. Japan Content Target

Japan content refers to the percent of domestically procured products and services across the entire wind-power generation lifecycle; the target is set at achieving 60% Japan content. Some media mistakenly reported that the target aims to achieve domestic manufacture of 60% of the parts of wind turbines. However, the scope of this target goes beyond manufacturing to include products and services throughout the entire wind-power project life cycle such as: surveys, manufacturing, construction, operation, maintenance, and decomissioning. Manufacturing involves cost optimization of the supply chain on a global level, and the same applies to offshore wind turbines. Misconceptions that this target aims to increase domestic procurement in manufacturing alone threaten to disrupt the current, optimized supply chain.

3. Cost Reduction Target

The vision lacks a clear definition of power-generation costs (LCOE). Wider government discourse on power-generation cost implies that this target refers to the cost of energy; this differs from other definitions such as tender price, which takes into account fair profits for operators on top of the cost of energy itself.


These considerations must be taken into account when assessing progress toward the targets, and all discussion should be based on the correct understanding and accurate definitions.

We have identified the following areas for both the public and private sectors to focus on in order to ensure that the three targets are achieved and the introduction of offshore wind accelerated (Figure 2).

In order to achieve the introduction and cost reduction targets, it is important to put as many projects as possible into operation by 2030 and speed up the introduction of floating offshore wind³ in addition to bottom-fixed offshore wind. Covering initial rises in costs for operators is a prerequisite to building the domestic industry and must be covered through a government program; government auction operations must also take into account the appropriate balance of cost-reduction and industry-building measures. In order to achieve the Japan content target, the government and industry must constantly monitor progress and put measures into place at the proper time that facilitate the development of both the industry and its workforce.

With the announcement of the Vision for Offshore Wind Power Industry (1st) and its three targets, Japan has set off for the full-fledged introduction of offshore wind. In order to achieve steady growth of offshore wind, Japan must work steadily on the issues discussed above, while also promoting medium- to long-term initiatives, such as setting out the specifics of the 2050 introduction target keeping carbon neutrality in mind.

Meanwhile, stable power supply should also be kept in mind as an integral step in making offshore wind a main source of power. Japan needs to consider a mechanism that supports stable power supply. Europe offers insightful precedent to which Japan can refer such as the formation of a platform to share operational data to improve the performance and reliability of offshore wind farms⁴.

In order to implement these initiatives in a timely manner, the Council must continue regular discussion with a sense of urgency on improvements, details, and implementation of measures. We have been supporting discussion at the Council through our work on associated projects. We have also strengthened our partnership with BVG Associates, a firm in the UK with extensive achievements in the field of offshore wind power.⁵ As a link between the public and private sectors, we will strive to contribute to the growth and development of the offshore wind power market, through discussion spanning both the public and private sectors.