Japan is at a critical point in its clean energy transition, with offshore wind positioned as a key component of its strategy. Yet despite strong government ambition and the establishment of development frameworks such as Port Projects and the Round 1–3 tenders, recent events have exposed structural challenges that threaten to slow progress. The Global Wind Energy Council (GWEC) has released a new white paper that examines these issues and outlines practical, strategic pathways to get Japan’s offshore wind sector back on track.
Offshore Wind Japan
In 2025, Japan’s offshore wind sector faced major setbacks, including a developer pulling out of Round 1 and slow progress in some Round 2 and 3 projects. These issues show that deeper structural problems need to be fixed so projects can move from planning to delivery more smoothly and reliably.
The GWEC Report
The GWEC white paper looks closely at the challenges facing Japan’s offshore wind sector and sets out a clear plan to help restore confidence, speed up development, and unlock the country’s offshore wind potential.
It includes short-term recommendations to improve Round 1 and the launch of Round 4, helping make future auctions clearer and more competitive without changing existing laws.
The report also offers long-term ideas for Round 5 and beyond, aimed at creating a more stable and attractive market that can support steady investment and Japan’s long-term renewable energy goals.
Key Insights
GWEC highlights three main areas Japan needs to improve to support steady offshore wind development:
Auction Framework
Japan needs to update how auctions are run. Improving the evaluation criteria and overall design will help make projects more workable and speed up new capacity.
Offtake Mechanisms
Price caps and offtake agreements need to be updated so bids better match real market conditions. Stronger offtake structures will help attract investment and make projects more financially secure.
Other Market Bottlenecks
Issues with certification, curtailment, and supply chain visibility are creating uncertainty for developers. Fixing these problems will help unlock investment and support regional economic growth.
The white paper also calls for a new forum to improve coordination between policymakers and industry. Better alignment on regulatory, technical, and commercial issues will help speed up project delivery. With timely action on these recommendations, Japan can make real progress toward unlocking its offshore wind potential and strengthening its clean energy future.
