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Japan Plans to Establish Development Cap for a Single Wind Farm to Accelerate Grid Connection

published: 2022-07-04 9:30

In order to accelerate the progress of grid connection for offshore wind power, Japan has announced a new draft that encourages health competitions and restricts a single bidder from winning multiple projects, with the progress of establishment also being an evaluation focus.

The Japanese government aims to utilize renewable energy as the main power source as soon as possible and attain the target of net zero emission by 2050, with offshore wind power being regarded as one of the development emphases. The question is how can the cost be balanced? And how to get private sectors and businesses to participate? Japan currently has a tender evaluation standard of 240 points that evaluates prices and operation feasibility, and those who are given the highest score can participate in tenders.                                                                

However, Japan did not lay down a development cap for a single company in the past. A subsidiary of Mitsubishi managed to obtain three development sites from the coastal areas of Akita and Chiba through a major tender at the end of last year, which aroused quite a bit of controversy, and some individuals are urging that the rules of tenders must be revised once again if the ultimate goal is to accelerate development of offshore wind power and generate additional interests among more contractors.

Setting a development cap for a single company may not attain economies of scale, but it ensures that prices are not the only tender advantage, but also a shorter installation and construction period. Japan’s new draft will confine the maximum tender capacity to 1000MW for a single company, and all other tenders from the particular company will be canceled once the cap is met. This method will be applicable onto the subsequent tender.

A maximum of 20 points are awarded in accordance with the feasibility of tenderers’ projects. The new regulation is expected to offer 20 points according to the implementation speed of projects, and it is evident that the Ministry of Land, Infrastructure, Transport and Tourism and the Ministry of Economy, Trade and Industry are now even more prioritized on the progress of wind power projects. With that being said, it is merely a draft, and it will be subject to further revisions and more public hearings. The new regulation aims to complete before the end of the year.

 (Cover photo source: unsplash)

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