At least one major offshore wind developer will withdraw from or downsize a Japanese project within six months, despite Tokyo's subsidy hike to ¥700,000/kW.

Made

14 Aug 2026

David Lee

Market

Japan

Outcome

True

TrueJudged 13 November 2026

Reuters reported on 5 November that Tokyo Gas, Japan's biggest city gas supplier, has withdrawn from an offshore wind project at Kashima Bay in Ibaraki prefecture because of rising costs. President Shinichi Sasayama gave the news at a press conference and declined to say more. He said the company will keep pursuing other projects, including floating offshore wind.

Mitsubishi and other developers already returned allocations in 2024 over cost blowouts from steel prices, currency swings and turbine supply, so a 3.5-times subsidy rise narrows but does not eliminate the financing gap driving exits.

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