Japan

Japan

Japan sets favourable offshore tariff

JAPAN: Japan will fix its offshore wind power tariffs at JPY 36 ($0.35) per kilowatt hour from 1 April, the Ministry for Economy, Trade and industry has announced.

Japan is leading the way with floating technology, including this 2MW prototype in Fukushima
Japan is leading the way with floating technology, including this 2MW prototype in Fukushima

The user premium for onshore wind will remain unchanged at JPY 22/kWh.

Since the committee tasked with calculating procurement costs also lowered the premiums for solar to JPY 32/kWh, from JPY 36/kWh, this latest move is seen as helping create a more level playing field for wind power.

"As a start, this is wonderful news," said GL Garrad Hassan's Japan managing director Yukinobu Uchida.

"So far, it has been a bit of a chicken and egg-type problem, with developers unwilling to make the first move in the absence of an energy policy," he added.

The price burden associated with offshore wind has seen developers press for offshore tariffs around 1.5 times higher than those for onshore wind. The JPY 36 figure is at the upper end of expectations.

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