Overview

• Mitsubishi announced on August 27 that it will exit three planned offshore wind farms, saying construction costs have risen to more than twice its bid assumptions and future cost swings pose material risk.
• The canceled sites are off Noshiro, Mitane and Oga and off Yurihonjo in Akita Prefecture, and off Choshi in Chiba Prefecture, which a Mitsubishi-led consortium including Chubu Electric subsidiaries won in 2021.
• The three tracts total about 1.7 million kilowatts in capacity, and the winning bids proposed power prices of ¥11.99–¥16.49 per kWh, far below the ¥29 cap set by the government.
• Mitsubishi has booked a ¥52.4 billion loss in its offshore-wind business for the fiscal year that ended in March 2025.
• Officials are expected to re-auction the areas, though elevated material and labor costs and a weaker yen cast doubt on replacement bidders and may trigger adjustments to renewable-energy policy.