In the continuing evolution of Japan’s renewable energy sector, two new sea areas were recently designated as “Promotion Zones” under the ambit of the Act of Promoting Utilization of Sea Areas in Development of Power Generation Facilities Using Maritime Renewable Energy Resources, also known as Act No.89 of 2018 or the Maritime REA. This latest development, as detailed in a document from the esteemed law firm, Orrick, Herrington & Sutcliffe LLP, took place on October 3, 2023.
As part of Japan’s commitment to increasing its renewable energy portfolio and reducing carbon emissions, the move to establish new “Promotion Zones” is seen as a significant step towards harnessing maritime renewable energy resources. The Promotion Zones are specific areas earmarked for offshore wind projects, designed to support the development and deployment of renewable energy technologies.
Current applications for these wind projects in the general sea areas are now under review for what is being referred to as Round 2. This round includes the first auction based on the updated and revised evaluation criteria under the Maritime REA, significantly, with the assumption of Feed-in Tariff (FIP) approval.
The introduction of these fresh “Promotion Zones” presents an intriguing prospect for the future of renewable energy in Japan, opening new avenues for sustainable ventures. As applications for Round 2 progress and reviews are undertaken, we will continue to closely monitor these ongoing developments and their potential implications for the renewable energy industry and legal practitioners alike.