Japan Opens Vast Exclusive Economic Zone For Offshore Wind Projects

Japan has passed a new law that allows offshore wind farms to be built in its vast Exclusive Economic Zone (EEZ). The legislation, approved by Japan’s national parliament this week, aims to open up nearly 4 million square kilometres of sea space that was previously off-limits for such projects.

Until now, Japan’s offshore wind development has been limited to its internal and territorial waters. With this new law, the government can now designate specific zones within the EEZ for wind energy projects and begin granting licenses to developers.

The Japan Wind Power Association has estimated that the country’s EEZ holds the potential to generate up to 552 gigawatts (GW) of offshore wind power, mostly through floating wind turbines installed in deeper waters. Some reports even suggest the theoretical capacity of the EEZ could be as high as 1 terawatt (TW).

The new legislation includes several key measures to support offshore wind development. It requires the Ministry of Economy, Trade and Industry (METI) to set up a council that will coordinate the planning and execution of wind projects in collaboration with other relevant agencies and stakeholders. It also provides for streamlined, government-led environmental assessments designed to protect biodiversity in the designated wind farm areas.

The bill was first proposed in January 2024 and has been welcomed by industry groups and global organisations. The Global Wind Energy Council (GWEC), which had been advocating for this reform, said the approval of the law is an important step for Japan’s energy future.

GWEC discussed the need for further collaboration between the government and the wind industry to create a clear and bankable system for EEZ projects. It also pointed out that transparent permitting, better access to infrastructure, and risk-reduction mechanisms will be necessary to attract investors and speed up project development.

The law is expected to take effect by April 1, 2026. In the meantime, Japan is also reviewing other policies to improve the offshore wind business environment. One major change under consideration is to extend the permitted duration of wind projects from the current 30 years to 40 years, allowing more time for cost recovery and long-term planning.

Another proposal aims to relax Japan’s cabotage laws, which currently restrict foreign-flagged ships from operating in domestic waters. This change would allow non-Japanese vessels to participate in the construction and maintenance of offshore wind farms, reducing project delays and costs.

The country has committed to installing 10 GW of offshore wind capacity by 2030, and between 30 to 45 GW by 2040.

However, the sector has faced challenges. Inflation, the declining value of the yen, and rising costs have made it difficult for companies to continue with their original project plans.

Mitsubishi has already started reviewing its offshore wind projects in Japan, and Shell recently reduced its local offshore wind team as it moves away from low-carbon businesses.

References: renewablesnow, 4coffshore

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