Azernews.Az

By Alimat Aliyeva

A consortium led by Mitsubishi Corp. will withdraw from three offshore wind power projects in Japan's Chiba and Akita prefectures, citing concerns over profitability, Nikkei reported on Tuesday, referencing a source familiar with the matter, Azernews reports, citing foreign media.

The consortium had been selected to develop offshore wind farms in three designated zones along the Japanese coast. However, a combination of overly aggressive bidding and soaring material costs has made it impossible to guarantee long-term profitability, prompting the decision to exit the projects.

According to the source, this setback highlights the urgent need for Japan to revisit and possibly revise its renewable energy strategy. The affected offshore wind zones will likely be reopened for public re-bidding in the future, delaying progress on the country's ambitious green energy goals.

Interestingly, Japan has set a target of generating 10 gigawatts of offshore wind energy by 2030 and 30–45 gigawatts by 2040, aiming to reduce its reliance on imported fossil fuels and meet climate commitments. This withdrawal by a major player like Mitsubishi raises questions about the feasibility of those targets, especially under current market pressures such as inflation, global supply chain disruptions, and competition from cheaper renewable projects abroad.

This development also underscores a broader challenge: while Japan is pushing for a clean energy transition, balancing economic viability with environmental ambition remains a delicate task.