Supply chain constraints

Recommendations

• Japan shall have a robust supply chain which can supply sufficient products and services when required. Excessive expectations for the formation of domestic supply chains could be an obstacle to accelerating development of offshore projects. It is necessary to create an environment in which domestic and foreign suppliers can make large investments based on future market size projections.
• Increase market predictability for supplies by shortening the time between bidding and the start of operations with regulatory reform of permitting procedures (e.g. Wind farm certificate, EIA) and providing a long-term roadmap for project formation. Expanding the scale of each offshore wind project to 1 GW or larger level would enhance the market predictability.
• Establish and implement strategic policies to enhance the competitiveness of Japanese suppliers in international market while welcoming non-Japanese suppliers to Japan for providing their products/services which are already proven in international market. These two concepts should not be regarded as conflicting with each other. Both policies would support each other in facilitating the robust supply chain of the offshore wind in Japan and Asia.
• Allow to employ products, services, specifications, inspection methodologies, etc. which comply with international codes and standards but might not be aligned with Japanese ones. This would attract and encourage more non-Japanese suppliers to provide their products and services to Japan. Japan shall be an attractive market for non-Japanese suppliers because the offshore wind supply chain is “Seller’s market” now and is expected to remain so for the next several years. This means suppliers enjoy and will enjoy luxury to select markets which are more profitable and less risky. It is worth noting that some suppliers are showing their reluctance for entering Japan or continuing their business here.