A new study claims that offshore wind power could become cheaper than coal generation in Japan as early as 2022!
As offshore wind power as well as solar energy projects get underway in Japan, it poses a risk to Japan’s 11GW coal pipeline.
Already Japan’s offshore wind sector is taking off as the Japanese parliament - the Diet - passed a law creating a legal framework for auctions and zone allocations to enable the country’s 5GW-plus project pipeline in early 2019. The country has already picked the first four zones off its coast for future government offshore wind auctions.
Yet, investments in coal energy projects are still getting approvals too even as the Japanese government is very focused on decarbonization.
Some analysts argue that Japan’s existing as well as planned coal capacity are partially protected by regulations that give coal generators an unfair advantage in the marketplace.
However, the question is how will the coal industry compete against renewable energy especially offshore wind power.
For the latest updates on Japan’s offshore wind power market, attend CMT’s 2nd OWP Japan on 18-20 May, 2020 in Tokyo.