Japan Designates Hokkaido Offshore Wind Sites for Future Auctions

Japan Selects Two Hokkaido Offshore Wind Sites for Auctions to Boost Renewable Energy Goals

TOKYO, July 30, 2025 – Japan has taken a major step in advancing its renewable energy agenda by designating two offshore areas in Hokkaido — Matsumae and Hiyama — as official promotion zones for upcoming offshore wind auctions, according to a joint announcement by the Ministry of Economy, Trade and Industry (METI) and the Ministry of Land, Infrastructure, Transport and Tourism (MLIT).

The move signals the government’s commitment to reducing its dependence on fossil fuel imports and cutting carbon dioxide (CO₂) emissions, even as previous auction rounds faced setbacks due to soaring project costs.

No Auction Timeline Yet, But Guidelines Coming

The ministries did not announce a specific timeline for the auctions, but confirmed that detailed guidelines for usage of these offshore zones will be developed. Once finalized, a public tender process will invite developers to bid for energy projects in these designated waters.

This announcement is part of Japan’s broader ambition to generate 45 gigawatts (GW) of offshore wind energy by 2040, a key pillar of the nation’s renewable energy strategy.

Japan’s Offshore Wind Struggles & Strategic Shift

Japan’s push toward offshore wind has faced recent hurdles. The first major auction in 2021, won by Mitsubishi Corporation, revealed cracks in the system after the company warned earlier this year that rising global costs and logistical delays were jeopardizing its plans.

The slowdown prompted criticism from developers and environmental advocates alike. Now, government insiders suggest that Tokyo may look to sweeten auction terms to incentivize investment and revive momentum in the sector.

Offshore wind energy is seen as a cornerstone of Japan’s energy security, especially given the country’s limited land for solar expansion and reliance on energy imports.

📌 What’s Next?

While no fixed date has been set, the selection of Matsumae and Hiyama marks a turning point. These two coastal regions on Japan’s northern island of Hokkaido offer favorable wind conditions and ample space for wind turbine installations.

Energy analysts believe these sites will attract both domestic and international developers once terms are adjusted to account for inflation and project risk — challenges that have hit the global offshore wind market hard over the past two years.

📊 At a Glance: Japan’s Offshore Wind Targets