Tokyo, 27 August 2025 – Mitsubishi Corporation is reconsidering its participation in three major offshore wind projects in Japan’s Chiba and Akita prefectures, originally awarded in 2021. The company is reviewing all options—including a full withdrawal—amid a sudden surge in equipment and fuel costs paired with rising interest rates, which have reshaped the investment climate. Mitsubishi already booked a ¥52.2 billion (US$354 million) impairment earlier this year in response to these deteriorating conditions.
The envisioned farms combine for a capacity of 1.76 gigawatts and were slated to go online between 2028 and 2030. Mitsubishi’s possible exit highlights growing financial pressures on Japan’s broader ambition to reach 10 GW of offshore wind by 2030 and 45 GW by 2040. Competing entities like RWE, Iberdrola, and BP remain engaged, but sustainability of the push comes under scrutiny.
In response to rising construction costs, Japan’s Trade and Land Ministries proposed extending offshore wind project leases by an additional 10 years—from 30 to 40 years—to boost project viability, improve return horizons, and attract capital. Whether this adjustment will apply retroactively to projects already underway remains uncertain.
Mitsubishi’s reassessment mirrors wider global challenges confronting renewable energy developers amid geopolitical shocks like the war in Ukraine, inflation, and tightening credit markets. The broader implications for Japan’s clean-energy transition are substantial: investor confidence could erode just when the nation seeks to reduce fossil fuel dependency and revitalize its climate targets.
