Vestas shelves Japanese Plant Idea

Denmark’s Vestas Wind Systems has shelved plans to build a wind turbine plant in Japan after its prospective customer failed to snag a offshore wind farm contract, Pimagazine Asia has learned.

The plant planned in Nagasaki Prefecture was slated to receive subsidies from the Ministry of Economy, Trade and Industry, but Vestas withdrew its application for the assistance in March.

European peer Siemens Gamesa Renewable Energy also has told Japanese power operators that it will not supply offshore wind turbines. Vestas and the Siemens Group rank fifth and sixth, respectively, in the global market for offshore wind turbines. Chinese enterprises occupy the top four places, but they mostly do business domestically.

A consortium led by Mitsubishi Corp. won in December all three projects up for grabs in the government’s first major auction for offshore wind farm contracts. Mitsubishi’s competitive pricing was the reason for the sweep, but this prompted concerns that big companies may end up dominating wind projects.

Wind power is a leading alternative energy source for reducing carbon output. Japan aims to field 5.7 GW of offshore wind farms by fiscal 2030, a scope equivalent to a six-reactor power plant.