Japanese conglomerate Orix is eyeing a push into the country’s nascent offshore wind market.
The company, which already develops onshore projects, has kicked off a series of seabed surveys that will examine suitable sites off the coast of Choshi in Chiba prefecture.
The acoustic seabed survey comprises three aspects.
The geological exploration will deploy an acoustic bottom profiler to identify the geological structure of the seabed.
Investigations of seabed conditions will be made using a side-scan sonar to determine man-made structures such as artificial reefs and submarine cables on the seafloor, as well as the state of marine waste and any shipwrecks.
This investigation also includes assessing the state of sand waves and the makeup and distribution of soil on the seafloor.
The topographical survey will use an echo sounder to confirm the topography of the sea floor and is expected to wrap up in mid-March 2019.
Orix is “actively expanding” its activities in renewables, it said.
“Since 1995, Orix has invested in the onshore wind power generation business both in Japan and overseas and has cultivated knowhow in the field of wind power generation,” said the company.
“Using the knowledge it has accumulated thus far ORIX is engaged in surveys and discussions aimed at the development of its wind power generation business, including offshore wind farms.”
Meanwhile energy market analyst Wood Mackenzie forecasts Japan’s offshore wind capacity could reach upwards of 4GW by 2028.
The company cites new offshore wind-friendly policy, nuclear capacity shortfalls, plus a change of focus at Japan’s biggest power company as drivers for a positive offshore wind outlook over the next decade.
Wood Mackenzie estimates that the country will face a power generation shortfall of more than 10GW by 2030, as it struggles to restart 30 nuclear reactors to meet the national nuclear target of 20-22% of the national power mix.
Wood Mackenzie senior analyst Robert Liew said: “We expect Japan to emerge as a key offshore wind market in Asia.”
On the policy front, the Japanese Cabinet recently approved an offshore promotion law which grants developers the right to occupy an area up to 30 years, including construction and decommissioning, in general sea areas.
A working group has also been set up to establish maintenance and management standards for offshore wind projects.
Discussions are also under way to streamline application process for port and harbour projects in the lead up to the first offshore tenders expected in the first half of 2019 for potential sites in Aomori and Nagasaki prefectures, according to Wood Mackenzie’s study.
Tokyo Power Electric Company (TEPCO), which is Japan’s largest utility, made several announcements last month regarding offshore wind power.
Liew said: “Rising costs and a lack of public confidence in TEPCO’s ability as a nuclear operator has led the company to reconsider its future strategy.
“TEPCO’s involvement in offshore wind is a crucial development which signalled to the market that offshore wind is commercially viable. This will make it easier for the government and local companies to accept offshore wind.”
According to Wood Mackenzie, Hitachi’s decision to stop new turbine sales could provide opportunities for foreign turbine makers.