Report on Japan’s Public-Private Partnership for Offshore Wind Power Development

Introduction

Japan’s Ministry of Economy, Trade and Industry (METI) has entered into a landmark agreement with Siemens Gamesa Renewable Energy to create a comprehensive framework for public-private cooperation in offshore wind power development. This initiative aims to establish robust local supply chains to support Japan’s expanding renewable energy sector, aligning with the Sustainable Development Goals (SDGs), particularly SDG 7 (Affordable and Clean Energy), SDG 9 (Industry, Innovation, and Infrastructure), and SDG 13 (Climate Action).

Background and Objectives

• Japan currently lacks domestic wind turbine manufacturers, creating a critical gap in its energy infrastructure.
• The partnership seeks to foster collaborations with global industry leaders to develop indigenous supply chain capabilities.
• This initiative supports SDG 8 (Decent Work and Economic Growth) by promoting sustainable industrialization and innovation.

Key Components of the Agreement

1. Siemens Gamesa, a division of Siemens Energy, will collaborate with Japanese electronics manufacturer TDK.
2. TDK will supply permanent magnets for Siemens Gamesa’s wind turbines, advancing the localization of component production.
3. This step is crucial for building domestic manufacturing capacity and reducing dependency on imports, contributing to SDG 12 (Responsible Consumption and Production).

Context of Broader Industry Initiatives

• METI recently signed a similar agreement with GE Vernova to promote cooperation in wind power, hydrogen, and ammonia sectors.
• These partnerships reflect Japan’s strategic approach to integrating international expertise with local capabilities.

Significance of Offshore Wind Power in Japan’s Renewable Energy Strategy

Offshore wind power is a cornerstone of Japan’s renewable energy plans, essential for achieving SDG 7 and SDG 13 by reducing reliance on imported coal and gas. Japan has set an ambitious target of 45 GW of offshore wind capacity by 2040. However, challenges remain:

• Heavy dependence on imported turbines and components.
• Cost escalations and delays following three major auction rounds.

Current Progress and Challenges

According to the Japan Wind Power Association:

• New wind capacity additions were approximately 670 MW in 2024, up from 480 MW in 2023 and 510 MW in 2020.
• Despite growth, the scale remains modest relative to national ambitions.

Government Strategy and SDG Alignment

The government’s emphasis on developing local supply chains addresses broader concerns regarding energy security and industrial competitiveness, directly supporting:

• SDG 7: Ensuring access to affordable, reliable, sustainable, and modern energy.
• SDG 9: Building resilient infrastructure and fostering innovation.
• SDG 13: Taking urgent action to combat climate change and its impacts.

By partnering with established international manufacturers such as Siemens Gamesa, Japan aims to accelerate technology transfer and cultivate domestic expertise in offshore wind development.

Conclusion

The agreements signed in Tokyo represent a pragmatic and strategic approach to overcoming Japan’s renewable energy challenges. By combining international expertise with local manufacturing capabilities, Japan is advancing its clean energy transition in alignment with multiple Sustainable Development Goals, fostering a sustainable and resilient energy future.

1. Sustainable Development Goals (SDGs) Addressed or Connected

1. SDG 7: Affordable and Clean Energy
   • The article focuses on Japan’s offshore wind power development, which is a key component of clean and renewable energy expansion.
   • Efforts to build local supply chains and increase wind capacity directly contribute to increasing access to affordable, reliable, sustainable, and modern energy.
2. SDG 9: Industry, Innovation and Infrastructure
   • The partnership aims to develop domestic manufacturing capabilities and technology transfer in offshore wind turbines.
   • This supports building resilient infrastructure, promoting inclusive and sustainable industrialization, and fostering innovation.
3. SDG 13: Climate Action
   • Japan’s target to expand offshore wind capacity to 45 GW by 2040 is part of reducing dependence on fossil fuels like coal and gas, thus mitigating climate change.
4. SDG 17: Partnerships for the Goals
   • The public-private partnerships between Japan’s METI, Siemens Gamesa, TDK, and GE Vernova exemplify multi-stakeholder partnerships to mobilize knowledge and resources.

2. Specific Targets Under Those SDGs Identified

1. SDG 7 – Target 7.2: Increase substantially the share of renewable energy in the global energy mix.
   • Japan’s goal of 45 GW offshore wind capacity by 2040 aligns with increasing renewable energy share.
2. SDG 9 – Target 9.2: Promote inclusive and sustainable industrialization and, by 2030, significantly raise industry’s share of employment and gross domestic product.
   • Developing local supply chains and manufacturing capabilities for wind turbines supports sustainable industrialization.
3. SDG 9 – Target 9.5: Enhance scientific research, upgrade the technological capabilities of industrial sectors.
   • Technology transfer and partnerships with global manufacturers foster innovation and technological advancement.
4. SDG 13 – Target 13.2: Integrate climate change measures into national policies, strategies, and planning.
   • Japan’s renewable energy strategy and offshore wind development are part of national climate action plans.
5. SDG 17 – Target 17.16: Enhance the global partnership for sustainable development.
   • The public-private cooperation agreements exemplify partnerships to achieve sustainable development goals.

3. Indicators Mentioned or Implied to Measure Progress

1. Indicator 7.2.1: Renewable energy share in the total final energy consumption.
   • Japan’s increase in offshore wind capacity (670 MW in 2024, up from previous years) indicates progress towards increasing renewable energy share.
2. Indicator 7.2.2: Renewable energy share in the total final energy consumption in the electricity sector.
   • Tracking offshore wind capacity additions reflects progress in renewable electricity generation.
3. Indicator 9.2.1: Manufacturing value added as a proportion of GDP and per capita.
   • Development of local supply chains and domestic manufacturing of turbine components will influence this indicator.
4. Indicator 9.5.1: Research and development expenditure as a proportion of GDP.
   • Technology transfer and innovation efforts implied in the partnerships contribute to this indicator.
5. Indicator 13.2.1: Number of countries that have communicated the establishment or operationalization of an integrated policy/strategy/plan which increases their ability to adapt to the adverse impacts of climate change.
   • Japan’s renewable energy strategy and offshore wind targets reflect integration of climate measures.
6. Indicator 17.16.1: Number of countries reporting progress in multi-stakeholder development effectiveness monitoring frameworks.
   • The agreements between METI and international companies demonstrate multi-stakeholder partnerships.

4. Table of SDGs, Targets, and Indicators

Source: energyconnects.com