Mitsubishi Retreats from Offshore Wind Power

Mitsubishi Corporation announced that it would retreat from its project of offshore power generation. Although the corporation received a governmental order in 2021, it concluded that cost for constructing facilities would be higher than expected. It is likely that Japan’s future energy plan will be damaged by exit of the top runner in development of offshore power generation in Japan.

The government of Japan had its first auction for offshore power generation in 2021. Mitsubishi, with Chubu Electric Power Company, won all three projects in two locations in Akita and one in Chiba. It offered 1.7 million kilowatt per hour from those three sites. The price of produced electricity per hour would be between 11.99 yen and 16.49 yen, far lower than expected 29 yen.

 

The government of Japan supported the project of Mitsubishi, expecting promotion of renewable energy in Japan. The government started new system of subsidy added on the price of sales of electricity produced from offshore power generation. Nevertheless, Mitsubishi recorded 52 billion yen of deficit in offshore wind power generation projects in February 2025.

 

The main reason for Mitsubishi to retreat was swollen cost for construction of devices. Mitsubishi expected that the cost would be reduced with prevalence of offshore power generation. However, it doubled to the contrary with invasion of Russia to Ukraine. European windmill maker raised the price of their products, and Mitsubishi is dependent on them.

 

Upholding a target to eliminate net emission of greenhouse gasses in 2025, the government of Japan has been expecting prevalence of wind power generation. The 7th Strategic Energy Plan, released in February 2025, hopes offshore wind power generation to be “key driver” toward making renewable energy a major power source in Japan with cost reduction.

 

The plan aims at 380,000 gigawatt of electric production through the renewables in 2040. Meanwhile, it expects 10 gigawatt of offshore wind power by 2030, and 30-45 gigawatt by 2040. As building mega-solar site is limited with restriction of land space and possessing long coastline in its archipelago, Japan has been embracing a great expectation to offshore wind power.

 

The government is going to look for an alternative corporation to promote the project Mitsubishi abandoned. For the developers in offshore wind power, the government gives preferable conditions to use coastal area. However, Mitsubishi has been recognized as the top runner in offshore wind power. It is possible that other developers will be inactive in joining the business. Slowdown of wind power may cause further dependence on nuclear power to reach the no emission goal.

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