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Japan to broaden overseas wind to exclusive economic zone

Japan's government on Tuesday approved a draft modification to existing legislation to enable the setup of offshore wind power in unique economic zones (EEZ), a milestone towards the country's objective of carbon neutrality by 2050.

Japan aims to have 10 gigawatts (GW) of offshore wind power projects by 2030 and up to 45 GW by 2040, to change fossil fuels including coal and melted natural gas (LNG) in its energy mix, for which drifting overseas wind is vital.

The new legislation would permit wind farms to be installed even more out to sea from existing territorial and internal waters, the federal government, including the ministry of economy, trade and industry (METI) and the ministry of land, infrastructure, transport and tourism, stated in a statement.

Through this expense, we will be able to develop stable and large-scale projects in the sea area, Market Minister Ken Saito told an instruction, including that the brand-new legislation should accelerate offshore wind expansion.

International energy business, from Germany's RWE to Spain's Iberdrola, have been urging Japan to beef up auctions and make financial investments more appealing, amidst skyrocketing expenses as competitors for suppliers grows worldwide, and to enact law for the EEZ.

EEZs are non-territorial waters where maritime nations declare mineral expedition and fishing rights.

Unlike the auction system for territorial waters, the proposed EEZ plan will embrace a two-step approval process.

The market ministry will choose the installation area, thinking about elements like wind conditions, water depth and proximity to territorial waters. Tentative approval will be Provided to candidates.

Later, official approval will be approved after assessments with appropriate parties, consisting of anglers and shippers, the government said.

The federal government intends to pass the amended legislation during this parliamentary session, scheduled to conclude in late June.

It might take about ten years for the very first case in the EEZ to become functional, Masaki Higurashi, a director in the industry ministry, told reporters, adding a setup location might support a generation capacity of a number of gigawatts.

Japan presently has less than 0.5 GW of overseas wind power set up and is establishing a couple of floating offshore wind farms, primarily for demonstration functions.

Market players are closely watching the EEZ legislation, which is crucial to unlocking floating offshore wind advancement and permitting it to be part of the state process.

All three significant rounds of Japan's state auctions so far have included turbines which will be fixed to the ocean floor.

(source: Reuters)