google-site-verification=sVM5bW4dz4pBUBx08fDi3frlhMoRYb75bthh-zE8SYY Mitsui-Led Consortium Scales Back Turbine Size for Niigata Wind Farm - TAX Assistant

Mitsui-Led Consortium Scales Back Turbine Size for Niigata Wind Farm

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Mitsui-Led Consortium Scales Back Turbine Size for Niigata Wind Farm

A major offshore wind project off the coast of Murakami and Tainai in Niigata Prefecture is undergoing a significant redesign. The developer consortium, led by Mitsui & Co. alongside RWE and Osaka Gas, has confirmed it will switch to smaller turbines and delay construction by one year due to shifts in the global supply chain.

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The Shift: From 18MW to 15MW

Originally, the project was designed to be one of the most efficient in Japan by utilizing 18-megawatt (MW) turbines. However, the manufacturer, GE Vernova, recently pivoted its strategy to focus on its “workhorse” 15-MW platforms, effectively canceling the larger model the consortium had planned to usImage of offshore wind turbine size comparison

Updated Project Specifications:

  • Turbine Capacity: Reduced from 18MW to approximately 15.5MW.
  • Total Units: Increased from 38 to 46 turbines to compensate for the lower power per unit.
  • Total Output: Remains targets at roughly 700 MW, maintaining the project’s overall scale.

Timeline and Financial Hurdles

The change in hardware necessitates a total redesign of the farm’s layout and foundation structures, leading to a shift in the project calendar.

MilestoneOriginal ScheduleRevised Schedule
Construction StartApril 2027April 2028
Commercial OperationLate 2028June 2029

Market Pressures:

The project is grappling with a “triple threat” of economic factors:

  1. Inflation: Rising costs for raw materials like steel and copper.
  2. Labor Shortages: A competitive market for specialized offshore engineering talent.
  3. Interest Rates: Higher borrowing costs compared to when the initial bid was submitted in 2023.

A Growing Trend in Japan’s Wind Sector

The Niigata delay is not an isolated incident. It reflects a broader cooling of the “wind rush” in Japan. Similar projects led by other conglomerates have faced delays or withdrawals as the reality of global inflation hits the Japanese renewable energy market.

To keep these projects viable, the Japanese government is now under pressure to adjust its Feed-in Premium (FiP) rates or provide additional subsidies to ensure that the 2030 national offshore wind targets remain achievable.