Mitsubishi has decided to cease the development of three offshore wind projects in Japan, due to insurmountable costs and a challenging business environment.
The decision follows a review of the company’s business plans for offshore wind power generation projects announced in February 2025.
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A consortium led by Mitsubishi’s subsidiary Mitsubishi Corporation Offshore Wind has been developing wind farms in the Akita and Chiba prefectures with a combined capacity of 1.76GW since 2021.
The projects were intended to commence operations between 2028 and 2030.
But unforeseen changes in the global business landscape, exacerbated by the Covid-19 pandemic and the Ukraine crisis, have led to supply chain issues, inflation and fluctuating exchange rates, prompting a reassessment of the projects.
Despite efforts to adapt through cost reassessment and project schedule adjustments, Mitsubishi and its partners concluded that establishing a viable business plan under the current conditions is not possible.
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By GlobalDataThe company stated: “After discussions among the partners, we have determined that establishing a viable business plan is not feasible given the current conditions.”
The majority of the financial losses associated with these projects have been accounted for in previous years, with any additional losses expected to be minimal.
The Japanese government wants to re-auction the three offshore wind sites dropped by Mitsubishi as early as possible, pending approval from local communities, as reported by Reuters.
Japan’s goals for offshore wind farm capacity stand at 10GW by 2030 and 45GW by 2040, with around one-tenth of the targeted capacity already auctioned off.
Other winners of its offshore auctions are global energy players such as RWE, Iberdrola and BP.
