EBC Public Comment on the Long-Term Decarbonisation Auction Scheme and Support Framework for Offshore Wind

On 25 April, the EBC submitted its comments on METI’s and MLIT’s call for public comments. (English / Japanese)

The EBC welcomes the inclusion of Offshore Wind Projects (OWP) in Japan’s long-term decarbonisation auction scheme, recognizing offshore wind as key to achieving carbon neutrality. However, past auctions have driven unsustainably low bids, causing delays and financial challenges. To ensure long-term viability, the government must provide a stable remuneration framework and clear guidance on transitioning from the FIT to FIP model, including implications for financing and CPPA evaluations.

The EBC also urges reforms in grid cost allocation, aligning with European models where the state or grid operators bear connection costs to ease the burden on developers. Transparency in CPPA arrangements is essential, especially regarding utility-affiliated off-takers, to maintain a level playing field.
Additionally, expanded financial support—such as GX bonds and decarbonisation fund subsidies—would improve project bankability. Regulatory changes in Special Economic Zones to streamline construction and logistics are also needed. Overall, stronger government leadership, clearer policies, and financial support are crucial to accelerating Japan’s offshore wind development.