SSE Renewables has signed an agreement with Pacifico Energy, one of Japan’s largest developers of renewable energy, to create a joint ownership company that will pursue offshore wind energy development projects in Japan
The creation of the joint ownership company involves the acquisition by SSE Renewables of an 80% interest in an offshore wind development platform from Pacifico Energy.
Japan has clear offshore wind targets of 10GW by 2030 and 30-45GW by 2040 as the country seeks to decarbonise and achieve greater energy independence. The targets are backed by a commitment to run regular offshore wind auctions for support.
SSE and Pacifico are hoping to acquire a number of early-stage offshore wind development projects geographically spread across Japanese waters, with the potential to progress to deliver multiple GWs. These early-stage projects are expected to use a mixture of fixed and floating technology and are working towards being selected for future auctions.
By combining the significant local preparatory development work undertaken by the experienced Pacifico Energy team with SSE’s expertise in developing, constructing and operating offshore wind farms, the joint ownership company will progress its 10GW portfolio of early stage development opportunities, with the most advanced aiming to enter bid rounds before or in the mid-2020s.
Japan now joins Spain, Portugal, Denmark, and Poland as being markets where SSE Renewables is actively looking to develop offshore wind projects and this acquisition could lead to further development options in the East Asian market which is expected to deploy up to 140GW of offshore wind by 2050.
Jim Smith, Managing Director of SSE Renewables, said: “Today is an exciting next step for SSE Renewables as we enter Japan which has huge ambitions for offshore wind deployment. And in Pacifico Energy we have found a fantastic local partner with hugely complementary local capabilities, experience and insights that can help bring our expertise in developing, building and operating offshore wind to this market. We want to help realise Japan’s renewables ambitions and be a significant part of their offshore wind plans during the decades ahead.”