Last week, the Mitsubishi-led consortium announced they are cancelling their offshore wind projects in Japan. These three fixed-bottom projects, totaling 1.7 GW, were expected to be the first large-scale projects to become operational in the country.
The consortium, consisting of the Mitsubishi Corporation and C-Tech Corporation, won the offshore wind projects in Japan’s Round 1 auction in 2021 with an aggressive bidding strategy, which already then was considered as quite an optimistic business case by many in the sector. Since February 2025, the projects have been under review due to large 2024-impairments, citing supply chain inflation, rising interest rates, and a weakening yen.
While this decision is a major setback for the Japanese offshore wind market, it follows a global trend, where cancellations of projects have been recurring across markets.
The Japanese government is planning on re-auctioning the three sites, however, it remains a question whether this will affect the planned fourth auction round, which is expected by year's end.
Aegir Insights’ clients have access to a new report on the Aegir Platform, analyzing the business cases of the three cancelled offshore wind projects by Mitsubishi in Japan, diving more into the factors playing into the decision and giving an overview of what might be next for the market.
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