The announcement of a Japan-UK offshore wind compact during Prime Minister Takaichi Sanae’s visit to the United Kingdom in mid-June, caps off a turbulent year for Japan’s offshore wind energy sector. Successes such as Kitakyushu Hibikinada And Go to projects brought online in Kyushu were offset by the withdrawal of Mitsubishi from large-scale projects off the coasts of Akita and Chiba due to skyrocketing costs. Much of the blame for these failures has been attributed to previous rules set by the Japanese government for companies bidding to develop projects, which exposed developers to inflation and unexpected price increases.
Without a solid business case, the future of offshore wind energy in Japan appears uncertain. This represents a major blow to Japan’s international obligations on climate change, under which offshore wind energy is expected to play a small but significant role. But perhaps more importantly, Japan’s halting progress in offshore wind power is a source of concern for declining coastal cities such as Muroran to Hokkaido And Choshi to Chibawhich rely on wind farms in their coastal waters to create jobs and income.
Meanwhile, 10,000 miles away, the deal struck by the British and Japanese prime ministers could see up to £9 billion of Japanese investment in the UK’s offshore wind sector. Even before the Japan-UK pact was announced, Mitsui & Co had signed an agreement to acquire the port of Nigga major Scottish base for offshore renewable energy in the North Sea. In just a few months, a manufacturing plant backed by Sumitomo Electric Industries to the tune of 350 million pounds should open its doors in the same region. Marubeni also made several investments in the offshore wind sector in Scotland over the last few years.
It could be concluded that Japanese companies are more enthusiastic about building infrastructure for offshore wind in Scotland and the wider UK than in their own country. This is hardly surprising. The Scottish and British governments have been courting Japanese developers for more than a decade. Scotland itself opened an office in Nagasaki to exploit the region’s maritime industry hub. The customs and tax incentives offered by the green freeport of Inverness and Cromarty Firth, in which the Port of Nigg is located, are a particularly important attraction for Japanese companies working in the offshore renewable energy supply chain.
As the Japanese government works to revive its offshore wind policy and maintain its climate obligations, it could learn from countries like Scotland and the United Kingdom that have persuaded Japanese developers to open their wallets and commit to projects. However, the Scottish model is not perfect. Tax and customs incentives are favorable to businesses, but reduce the country’s direct revenue. While encouraging the private sector to invest in factories and manufacturing sites could protect jobs in the short term, it leaves regional economies – whether in Scotland or Japan – at the mercy of the decisions of corporate boards in Tokyo and similar cities.
Measures to renew energy systems and reduce emissions must work for coastal communities that host offshore wind infrastructure. For Japan’s coastal cities, which often rely on revenue from fossil fuel power plants, the petrochemical industry or other industrial hubs, new jobs and new business models are urgently needed to achieve a just transition that does not leave behind the people and places associated with high-emissions sectors. Recent research published in the scientific journal Environmental research: energy found that local governments near the Enoshima offshore wind farm project in Nagasaki are excited about the possibility of green job creation in a region heavily dependent on coal-fired power plants and shipbuilding.
However, the same study also reveals that municipalities and prefectures are calling for technical support now, to ensure that their ports and coastal industries are able to take on operation and maintenance work over the coming decades. Analysis from the Renewable Energy Institute argued that the lack of suitable port infrastructure, rather than financial or technical challenges, may actually be the most critical obstacle facing Japan’s offshore wind sector.
Updating Japan’s offshore wind policies to create a more favorable economic environment is an opportunity to ensure that domestic renewable energy supports a just transition at home and abroad. For example, government subsidies to ports and supply chain companies could bring local facilities up to the standards required to complete complex offshore wind projects on time and on budget. Training programs and housing assistance can give young people from the most remote municipalities the opportunity to find qualified work close to home in an emerging sector.
The experience of Scotland and the UK shows that with the right incentives and policies, major Japanese players have the will and technical know-how to make offshore wind a reality. But for offshore renewable energy to support a sustainable, net-zero Japan, regional ports, supply chain companies and the local workforce must be equipped to benefit.