Japan to renew offshore wind energy auctions by year-end after revising guidelines

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TOKYO, June 24 (Reuters) – Japan’s authorities plans to renew public auctions for offshore wind energy initiatives by the top of this 12 months, after revising guidelines to attract a wider vary of bidders and encourage quicker growth of latest infrastructure.

The resumption follows the abrupt suspension of an public sale in March for an offshore wind farm in Happo-Noshiro in northern Japan. Business sources say that suspension got here amid criticism from companies in regards to the lack of readability across the bid course of.

Criticism has grown following the federal government’s choice in late December of three consortia all led by Mitsubishi Corp (8058.T) to function three offshore wind energy initiatives in Akita, northern Japan, and Chiba, close to Tokyo. learn extra

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The proposed modifications, offered on Thursday by the business and land ministries to a panel of expects, would give a better analysis rating to operators who submit earlier start-up dates and set a restrict on bids that one consortium can win when a number of ocean areas are auctioned.

To discourage auctions that concentrate on value alone, the analysis course of will deal with all bids which can be beneath the market value an equal rating of their evaluation on value.

The federal government says the modifications could be required as Japan must broaden renewable power quicker in mild of Russia’s invasion of Ukraine, which has despatched power costs hovering.

Offshore wind energy is a key a part of Japan’s decarbonisation technique and the federal government plans to put in as much as 10 gigawatts (GW) of offshore wind capability by 2030 and as much as 45 GW by 2040 to curb emissions.

Various world wind energy corporations akin to Denmark’s Orsted (ORSTED.CO) and Germany’s RWE (RWEG.DE) are eager to enter Japan’s market.

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Reporting by Yuka Obayashi; Enhancing by Sam Holmes

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