SSE Renewables plans to form a joint ownership company with Pacifico Energy, a Japanese renewable energy developer. As per their agreement, this company will pursue offshore wind energy development in Japan. SSE Renewables acquired an 80 per cent stake in an offshore wind development platform from Pacifico Energy to form this joint venture.
This deal aims to develop many fixed and floating offshore wind projects. The new company plans to move ahead with its 10 GW portfolio of early-stage development projects. The projects that are in the most advanced stages of development will enter bid rounds before or in the mid-2020s.
SSE Renewables has a 7 GW offshore wind pipeline in the UK and Ireland, with a target of 30 TWh of renewable energy output by 2030. SSE Renewables is now actively looking to develop offshore wind projects in Japan, along with Spain, Portugal, Denmark, and Poland. Japan on its part has set impressive offshore wind targets of 10 GW by 2030 and 30-45 GW by 2040. Further, the country will hold regular offshore wind auctions to raise funds.
REGlobal’s Views: Japan is on track to meet its own renewable energy targets and offshore wind has gradually become a key contributor in this owing to the country’s vast potential for offshore wind. The country’s offshore wind space is witnessing the entry of many large foreign investors and development firms mainly in collaboration with a Japanese company.