TEPCO, Ørsted Create Offshore JV

(Asia) Focus on Choshi Offshore Development

Wind power developer Ørsted and energy firm Tokyo Electric Power have announced the formation of a new joint venture to develop offshore wind in Japan.

The move follows a memorandum of understanding signed by both partners earlier in the year, and is likely to accelerate breakbulk activity in Japan’s offshore wind fields.

“TEPCO and Ørsted have been making excellent progress in developing our partnership and we are ready to see successful development of the Choshi Offshore Wind Project. Our two companies have agreed to establish a unique framework that enables us to effectively integrate and leverage strengths and expertise from both sides. We are confident this is key to succeed in the Choshi Offshore Wind Project,” said Tomoaki Kobayakawa, TEPCO representative executive officer and president.

Choshi Offshore

Under the terms of the agreement, the partners will establish a joint venture company, Choshi Offshore Wind Farm K.K., which plans to complete a major new wind farm in the Choshi-city offshore wind promotion area.

“This joint venture is not only a significant step in Ørsted and TEPCO’s efforts to deliver on Japan’s ambitions for domestic renewable power generation, but also a landmark moment for Ørsted’s market entry in Japan and for our aspirations to help Japan become a leading offshore wind market in Asia-Pacific,” said Ørsted CEO Henrik Poulsen.

Based in Fredericia, Denmark, Ørsted is one of the largest offshore wind developers in the world and also develops, constructs and operates onshore wind farms, bioenergy plants and waste-to-energy solutions worldwide.

Round 1 Auction

The newly formed joint venture will initially focus on tenders for the first round auction associated with the Choshi-city offshore wind promotion area, expected to be launched by the Japanese government in the coming months.

“In April this year, TEPCO will launch its renewable energy business arm, TEPCO Renewable Power, to make renewable energy a core generating source. The partnership with Ørsted and the establishment of Choshi Offshore Wind Farm K.K. will help drive business growth for the TEPCO group and TEPCO Renewable Power," Kobayakawa added.

TEPCO has previously announced plans to make renewable energy a "core generating source" by developing 6 to 7 gigawatts of renewable energy projects in Japan and overseas, as the company plans to develop "a very strong platform to scale up" its renewable energy business.