TEPCO, Ørsted Sign Offshore MoU
Energy company Tokyo Electric Power, or TEPCO, has signed a memorandum of understanding with wind developer Ørsted to jointly develop offshore projects in Japan.
Under the terms of the deal, the two firms will initially focus on the Choshi offshore wind project near Tokyo as they move towards a broader strategic partnership.
“We’re confident that the partnership combining TEPCO’s extensive expertise in the Japanese power business and Ørsted’s unparalleled track record in the offshore wind business will lead to success in the Choshi project. We hope that this first step paves the way for expansion beyond the coastlines of Japan for the development, construction, operation and ownership of offshore wind projects,” said Tomoaki Kobayakawa, executive officer at TEPCO.
Up to 7 GW Renewables Planned
The MoU follows completion of a seabed survey at the end of last year to examine feasibility of the project and is line with broader moves in the Japanese energy market towards greater renewable penetration.
“TEPCO is aiming to make renewable energy a core generating source by developing 6 to 7 gigawatts of renewable energy projects in Japan and overseas. The partnership with Ørsted will provide us with a very strong platform to scale up our renewable energy business as one of our main pillars of business growth,” Kobayakawa added.
TEPCO is the largest electric utility in Japan and operates more than 68 gigawatts of power in Japan, making it the world's fourth-largest electric utility.
Japan’s Offshore Wind Market Gains Momentum
The Japanese government passed a range of legislation to designate large-scale offshore wind development areas as it targets a 22 percent to 24 percent renewable share of electricity generation by 2030. This is expected to equate to 10 gigawatts of wind capacity, both offshore and onshore, by 2030.
“This MoU is the first step in Ørsted and TEPCO’s aspirations to deliver on Japan’s ambitions for domestic renewable power generation at a large scale and contribute to making Japan a leading offshore wind market in the Asia-Pacific,” said Henrik Poulsen, CEO of Ørsted.
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.
Photo: Offshore wind farm. Credit: Wikimedia