Extension of sea area occupancy for offshore wind power tender under consideration / METI and MLIT joint meeting
Regarding public tenders for offshore wind power generation in general sea areas, a joint expert meeting of the Agency for Natural Resources and Energy (ANRE) of the Ministry of Economy, Trade and Industry (METI) and Energy and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT) was held on June 24 to discuss measures to improve the profitability of projects, including those already awarded. Business operators have voiced concerns that the business environment is rapidly deteriorating due to inflation and soaring material costs. As possible countermeasures, the
secretariat cited examples such as the introduction of Power Purchase Agreements (PPAs), which distribute the risks of large-scale power generation projects between power producers and consumers, as well as the renewal of marine area occupancy permits.
ANRE stressed that it is of importance to establish mechanisms that appropriately evaluate the value of renewable energy sources. As examples, it cited non-fossil value trading under the Act on Advancement of Energy Supply Structure and the periodic reporting system for non-fossil electricity usage under the Energy Conservation Act. The Agency also pointed out the need to consider price formation measures that reflect the value of renewable energy to encourage investment, along with policies to enhance the effectiveness of the periodic reporting system under the Energy Conservation Act.
MLIT explained the current Guidelines for Operating the Occupancy Tender System, which set forth the treatment of projects after the maximum 30-year occupancy plan certification period has expired. It noted that renewal of occupancy permits, which would effectively extend the project period, may be allowed “if it is determined that there is no need to re-tender the project to business operators intending to conduct power generation in the relevant promotion area.”