Monday, May 27, 2013

Higher tariffs for offshore wind?

On May 6, 2013 it was reported that METI has indicated it will set a new tariff for offshore wind projects.  The government plans to collect data and set the tariff by early 2014, in order to promote the wide adoption of offshore wind projects.

The stated explanation is that offshore wind projects have a high cost and so will need to be higher than the 23.1 yen per kWh tariff generally available for larger wind generation.

Of course, in Europe offshore wind projects can offset their high cost with excellent revenue prospects, since the wind resources offshore are far better than on land, the wind both stronger and steadier.  The same is true offshore Japan.

Of course, a bigger concern with promoting wind as a renewable energy source in Japan is that NIMBY (not-in-my-back-yard) concerns make it extremely difficult to site sizeable wind projects onshore.  Whatever the truth of the matter, it is widely feared in Japan that vibrations from wind turbines result in headaches and generally create disturbance.

Much European offshore wind is in relatively shallow offshore waters.  On the other hand, Japanese projects may need to use floating installations, and the high cost could be justified for deep water, floating installations.


No comments:

Post a Comment