Mitsubishi Corporation withdraws from three offshore wind farms citing costs

Mitsubishi Corporation has announced a decision to no longer pursue development of three offshore wind farm projects in Japan.

The company, through a consortium led by subsidiary Mitsubishi Corporation Offshore Wind, was developing two projects in the Akita Prefecture and another in the Chiba Prefecture.

Mitsubishi Corporation began reviewing the business plans for the projects in February this year due to what it referred to in a release as "unexpected changes in the business environment."

These changes have been spurred by factors such as tight supply chains, inflation, exchange rates, and rising interest rates.

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In the statement, Mitsubishi Corporation said: "To adapt to these unexpected changes, we have been pursuing various options including reassessment of costs, project schedule, and revenue. However, after discussions among the partners, we have determined that establishing a viable business plan is not feasible given the current conditions."

The company says it will continue to monitor the business environment and remains committed to developing offshore wind, which will be an important part of Japan's future decarbonised energy mix.

Asia is not the only region facing challenges in the offshore wind sector. Globally, macroeconomic hurdles, policy instability and failed auctions in mature markets are impacting and delaying project development.

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The Global Wind Energy Council's (GWEC) 2025 short-term outlook is 24% lower than the previous year’s forecast due to these factors. Also, transmission delays in Europe and slower commissioning in the APAC region, mean that, while growth continues, it is happening at a slower pace.

GWEC's Global Offshore Wind Report, shows that while near-term growth will be concentrated in the already established markets in Europe and China, offshore wind is pushing into new regions such as Asia-Pacific and Latin America.

In Japan, South Korea, Philippines, Vietnam, Australia, Brazil and Colombia, governments are working with industry to establish policies and regulations to fast-track offshore wind, a strong signal of policymaker commitment and possible market expansion, suggests GWEC.