Iberdrola Bolsters Presence in Japan's Offshore Wind Market
Iberdrola has increased its commitment to the Japanese offshore wind market with a new 600-MW project, following the agreement with local developer Cosmo Eco Power and engineering firm Hitz to jointly develop the Seihoku-oki project in Aomori prefecture, in the northwest of the country. The Seihoku-oki offshore wind farm, under development, will enter round 2 of the capacity auction planned by the Japanese government between this year and 2022. Following the transaction - subject to the usual regulatory approvals - the project will be led by Iberdrola and Cosmo Eco Power, with similar voting rights, together with Hitz.
The deal takes place six months after the acquisition of 100% of Japanese developer Acacia Renewables - which has a 3,300-MW offshore wind pipeline in the south of the country. It is the company's sixth offshore wind agreement since early 2020.
Acacia Renewables has two offshore wind farms under development, with a combined capacity of 1,200 MW, which could be operational by 2028. It also has four other projects in the pipeline, with a total capacity of 2,100 MW. These six projects will be developed by Iberdrola together with Macquarie's Green Investment Group (GIG).
With these operations, in line with Iberdrola's strategy of leading the offshore wind market, the company will be able to compete in rounds 2, 3 and 4 - the last two scheduled for 2023/2024 - of the capacity auctions announced by the Japanese government, positioning itself in the initial development stages of a market with great growth potential.