Wedoany.com Report-Aug. 29, Mitsubishi has decided to discontinue the development of three offshore wind projects in Japan due to high costs and a challenging business environment. The decision follows a review of the company’s offshore wind power generation plans, initially announced in February 2025.

The Japanese government wants to re-auction the three offshore wind sites as early as possible.

A consortium led by Mitsubishi Corporation Offshore Wind, a subsidiary of Mitsubishi, has been working on wind farms in Akita and Chiba prefectures since 2021, with a combined capacity of 1.76 gigawatts. These projects were slated to begin operations between 2028 and 2030. However, global supply chain disruptions, inflation, and exchange rate fluctuations, compounded by challenges from the Covid-19 pandemic, prompted a reassessment of their feasibility.

Despite efforts to adjust project schedules and reduce costs, Mitsubishi and its partners concluded that a sustainable business plan was not viable under current conditions. The company stated: “After discussions among the partners, we have determined that establishing a viable business plan is not feasible given the current conditions.” Most financial losses from these projects were accounted for in prior years, with any additional losses expected to be minimal.

The Japanese government plans to re-auction the three offshore wind sites, pending approval from local communities, to support its renewable energy goals. Japan aims to achieve 10 gigawatts of offshore wind capacity by 2030 and 45 gigawatts by 2040, with approximately 10% of this target already allocated through previous auctions. Other global energy companies, including RWE, Iberdrola, and BP, have secured contracts in Japan’s offshore wind auctions.

This decision reflects the complexities of developing large-scale renewable energy projects amid economic and logistical challenges. Mitsubishi’s withdrawal underscores the need for adaptive strategies to ensure the viability of offshore wind initiatives, while Japan continues to pursue its ambitious renewable energy targets.