OMNI Features|Fierce Competition Between Aomori and Yamagata for Japan's Offshore Wind Power Round 3 Auction.Norwegian Embassy Report Highlights Vietnam's Strong Foundation for a Robust Offshore Wind Supply Chain

Dec. 04 2024

OMNI Features|Fierce Competition Between Aomori and Yamagata for Japan's Offshore Wind Power Round 3 Auction.Norwegian Embassy Report Highlights Vietnam's Strong Foundation for a Robust Offshore Wind Supply Chain

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|Fierce Competition Between Aomori and Yamagata for Japan's Offshore Wind Power Round 3 Auction

The third round of offshore wind power project tenders in Japan focuses on 2 areas: the "Aomori Prefecture" and "Yuza Town, Yamagata Prefecture." These locations were designated as promotion zones in October 2023. With only 2 regions available for selection, the current round of bidding has drawn participation from over 30 companies, creating intense competition. The planned installed capacity is 600 MW for Aomori and 450 MW for Yamagata, both utilizing fixed-bottom wind turbine technology.

To ensure fair bidding and cost efficiency, the government has adjusted its policies, introducing a Feed-in Premium (FIP) system with a bidding price cap of 18 yen/kWh, slightly lower than in previous rounds. The scoring system prioritizes electricity pricing, accounting for 120 out of a total of 240 points, making it the most critical evaluation criterion. Additionally, the government has removed restrictions on the number of bids a single company can submit. Selection criteria include project execution speed, stability of power supply, and collaboration with local communities. Companies are also required to address environmental issues, consider the needs of local fisheries, and support community development, balancing renewable energy goals with public interest. The successful bidders are expected to be announced by the end of the year.

|Norwegian Embassy Report Highlights Vietnam's Strong Foundation for a Robust Offshore Wind Supply Chain
Vietnam's offshore wind power sector holds great promise due to favorable wind conditions and an established oil and gas supply chain. A report by the Norwegian Embassy highlights Vietnam's potential in areas like tower manufacturing, foundation fabrication, and maritime infrastructure. Ports in the south, such as Vung Tau, are better equipped to support offshore wind logistics, while northern ports like Port of Haiphong could specialize in vessel fabrication. Despite challenges, offshore wind could generate up to 55,000 jobs in a 6 GW scenario and bolster green industry growth. The report recommends improving regulatory frameworks, investing in port upgrades, and fostering international collaborations.

Refernece: Wind Journal JP|The Investor VN/

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