A Lesson from Japan.
Japan’s Offshore Wind Issues: A Lesson For Others
Apart from literally burning cash, there is no faster way to squander monies then by piling it into an offshore wind power project. (1)
Japan’s latest offshore wind event is a good example.
Mitsubishi Corporation, one of Japan’s most powerful industrial giants is abandoning three massive offshore wind projects after admitting the numbers simply do not work. This corporate retreat exposes the harsh truth that renewable energy projects were never economically viable without massive government life support and taxpayer subsidies. The company’s CEO stated that investment recovery was impossible, leading to hundreds of million in losses. (2)
Japan’s offshore wind setback is more than a domestic issue. It is a global; reminder of the dangers of ignoring full costs and clinging to illusions. Ambitious targets and political inertia can mask reality, but economics always reasserts itself. (3)
This situation reflects a global trend, with major offshore wind projects being cancelled in the US and Europe due to soaring coats. The true cost of offshore wind is much higher than often reported when factoring in grid expansion and backup power for intermittent. On the US East Coast, Orsted cancelled two large projects in New Jersey, absorbing billions in losses. BP and Equinor abandoned contracts in New York after costs rose by 40% beyond estimates. In Europe, Vattenfall halted its Norfolk Boreas project citing a 40% cost increase. Market signals are screaming that offshore wind is economically unsustainable. (2)