Shulman Advisory

June 2024 Monthly Newsletter: The Latest News In The Japanese Power Market

Publication date: July 3, 2024

June 2024 Monthly Newsletter

Friends and Colleagues,

Welcome to the June edition of our monthly newsletter. This month, amidst unseasonably warm weather and the onset of Tsuyu (rainy season), we cover the government’s approval of the new Energy White Paper, progress in Japan’s floating offshore wind strategy, and take a look at ANRE’s new field surveys that will ensure renewable generation assets comply with local laws and regulations. Stay tuned for insights on these developments and their impact on Japan’s energy markets.

Government Approves Energy White Paper 2024

Welcome to the June edition of our monthly newsletter.

On June 4th, the government approved the Energy White Paper 2024 (FY2023 Annual Report on Energy). This report summarizes energy trends and the status of measures taken regarding energy supply and demand during FY2023. Part 1, the cornerstone of the white paper, is divided into three sections, each delving into the most crucial energy trends of the fiscal year.

  • The first section, “Progress of Fukushima Reconstruction,” highlights Japan’s efforts related to the discharge of ALPS-treated water into the ocean.
  • The second section, “Ensuring Energy Security Compatible with Carbon Neutrality,” presents Japan’s energy security status and the structural issues facing Japan’s energy sector. It emphasizes that shifting to a supply and demand structure resilient to an energy crisis is imperative through measures such as extensive energy conservation and investment in decarbonized energy amid increasing uncertainty surrounding energy.
  • The third section, “Challenges and Responses Towards Achieving GX and Carbon Neutrality,” reports that Japan is steadily progressing towards its greenhouse gas reduction target for FY 2030. It also analyzes Japan’s efforts towards GX, which have entered the “implementation” phase.

Japan’s Floating Offshore Wind Project Enters Phase 2

Welcome to the June edition of our monthly newsletter.

The Ministry of Economy, Trade and Industry (METI) and the New Energy and Industrial Technology Development Organization (NEDO) are advancing the “Low-Cost Offshore Wind Power Project” which is funded by money from Japan’s JPY2 trillion Green Innovation Fund. The aim is to reduce the cost of fixed-bottom offshore wind power to JPY8-9/kWh by 2030 and to commercialize floating offshore wind power at competitive costs.

Since 2022, Phase 1 has focused on developing technologies suitable for the Asian market, considering weather and ocean conditions. Phase 2 will integrate these technologies into a demonstration project for floating offshore wind power systems. Two geographical areas were selected for the demonstration projects, including off the southern coast of Akita Prefecture which will be led by Marubeni Offshore Wind Development, and one off the coast of Tahara City and Toyohashi City in Aichi Prefecture, led by Chubu Electric Power Group’s C-Tech.

Both projects plan to set up wind farms with capacity of over 15MW, using semi-submersible floaters. The demonstration will cover the entire process from initial oceanographic investigations to final operation and maintenance, including the development of turbines, floaters, transmission cables, mooring lines, and anchors and will run from July 2024 to March 2031.

ANRE to Conduct Field Surveys of Renewable Energy Power Generation Facilities

In recent years, there have been frequent reports of renewable energy generation facilities impacting the safety, landscape, and environment of the local communities. A survey conducted by the Administrative Evaluation Bureau of the Ministry of Internal Affairs and Communications of solar power facilities found that issues with municipalities occurred in about 40% of those who responded, and nearly 20% still had unresolved issues. As a result, a recommendation for corrective action was made to the Ministry of Economy, Trade and Industry.

In response, the Agency for Natural Resources and Energy (ANRE) announced that it would start inspections of renewable energy generation facilities and surrounding areas to assess their alignment with the certified plans based on the Renewable Energy Act and compliance with related laws and regulations. The inspections will be on-site with prior notice and conducted between June 2024 and March 2025.


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