Japan: Positive Results of Offshore Wind Study Group

The study group tasked to set the procurement price for offshore wind power (Procurement Price Calculation Committee), established by the Japanese Ministry of Economy, Trade and Industry (METI) last November, has released the results of its conclusions.

The study group members reviewed data from two demonstration projects and examined the cost, estimated to be required for introducing offshore wind power generation to Japan in an efficient manner. They have estimated that a wind farm consisting of 20 to 50 wind turbines would have the capital cost of 1.07 million yen or 1.12 million yen per kW, and 23,000 yen or 31,000 yen per kW for annual operation and maintenance costs.

While ascertaining the results of the demonstration projects, the study group comprehensively analyzed the results of interviews with business operators, who are considering commercializing such power generation, the results of feasibility tests in which business operators participated as well, overseas examples and other data.

The results ranged from 450,000 yen to 790,000 yen per kW for capital costs while annual operation and maintenance costs ranged from 15,000 yen to 30,000 yen per kW.

The study group agreed that these evaluations should be connected to future efforts to set the procurement price for offshore wind power, while also considering the potential risk of commercializing such wind power generation as a whole. ANRE expects that the Procurement Price Calculation Committee will develop discussions on how well the evaluations could be connected to such efforts, including discussions on whether or not the evaluation itself is appropriate.

Offshore WIND staff, January 8, 2013; Image: mhi