Japan received fewer bids than expected in the latest offshore wind power tender, with developers emphasizing that rising costs were the reason for their non-participation. Despite less competition, winning bidders still bid at the lowest price, which effectively means the projects have no subsidies and must rely on corporate purchasers. Since the bidding prices were the same, other criteria determined the winning bidders, such as the involvement of local stakeholders, supply chain planning, and economic impact.
In the third round of offshore wind power tenders, the Japanese government awarded Jera and its consortium partners the rights to build a 615MW offshore wind farm in southern Aomori City. Marubeni and its consortium members won a site located in Yuza, where they will construct a 450MW project.
Although several developers showed interest in the tender, only three consortiums applied for the site in southern Aomori City, while four applied for the site located in Yuza. Cosmo Eco Power explicitly stated that the increase in offshore wind power costs was the reason for its withdrawal from the tender.
All consortiums bid at the minimum price of 3 yen/kWh (equivalent to 19 dollars/MWh). This means that non-price criteria, such as stakeholder participation and economic impact, determined the winning bidders. These agreements are unlikely to cover the costs of the winning bidders, meaning they will have to rely on corporate power purchase agreements to secure procurement.
By joining the consortium led by Marubeni, BP is entering the Japanese offshore wind power market. BP and Jera are forming a new company named Jera Nex bp, which is expected to be established in September 2025. Bloomberg New Energy Finance believes that by then, the two companies will transfer their equity in these two winning projects to Jera Nex bp.
Through this bidding, Siemens Gamesa will expand its influence in Japan's offshore wind power market. Both winning bidders plan to use wind turbines from this German-Spanish company, meaning the company will secure an order for 1065MW of turbines.