Lack of offshore wind orders forces Vestas to put Japanese plans on hold

Image by: MHI Vestas Offshore Wind.

July 21 (Renewables Now) - Vestas Wind Systems A/S (CPH:VWS) has put on hold its plan to build a manufacturing assembly facility in Japan after failing to secure orders from the first round of the country’s offshore wind auctions, a company representative confirmed for Renewables Now.

The plan to construct the facility, however, has not been scrapped for good, said Megumi Sakuma, Vestas’ marketing and communications manager for Japan.

“We may proceed with the plan again after reviewing the status of future orders and other factors,” Sakuma added.

In July 2021, Vestas announced it was selected as one of the successful applicants for a subsidy programme from Japan’s Ministry of Economy, Trade and Industry (METI) designed to strengthen local supply chain networks. The Danish company intended to use the subsidy to build a facility that provides a module and assembly for offshore wind turbine nacelles.

The plan was dependent on Vestas “being selected by successful customers bidding in the offshore wind auctions and securing sufficient volume each year.” Unfortunately for the company, this has not happened so far and it has decided to skip applying for the subsidy and filed a notice of withdrawal in March 2022.

Since 1993, Vestas has established a local footprint in Japan with a total of 642 MW installed.

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