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)

Reminder of the dangers of ignoring full costs and clinging to illusions

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⁾

Japan’s experience demonstrates how energy policy drifts into selective cost reporting, technological optimism, and entrenched interests that ignore economic reality. Mitsubishi’s retreat proves that even industrial giants cannot overcome flawed policy frameworks. If Japan, with its formidable industrial base, struggles to make offshore wind viable, every nation should take notice. The renewable energy revolution is collapsing under the weight of its own economic contradictions, and the world cannot afford to ignore the warning signs any longer. ⁽²⁾

The lesson is clear. Policymakers should always assess the full costs, not just partial figures. They should heed market signals and adjust policy accordingly. Most importantly, they should avoid turning energy policy reliant on unproven technology into political patronage. ⁽³⁾

References

1. “Burning yen: Japanese government scraps last wind turbines in failed $580 million offshore project,” stopthesethings.com
2. Cassie B., “Japan’s green energy collapse proves wind power is an economic fantasy,” naturalnews.com, October 8, 2025
3. “Japan’s offshore wind setback: a lesson in the full cost of energy,” cornwallalliance.org, October 8, 2025