Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 147
Offshore Wind Worldwide 2023
f) Term of the occupancy permit
The term of the occupancy permit will be up
to 30 years. This period will allow for (i) the
environmental investigation assessment
(typically a four to five year period), (ii) the
construction period (usually two to three
years), (iii) the term of the project (approximately 20 years) and (iv) decommissioning
(typically two years), plus leeway periods.
1.3.4 Information to be provided
by the government at a
public auction
The government is required to provide
information relating to (i) wind condition
data based on surveys (with data compiled
on average every ten minutes for at least
12 consecutive months) and (ii) submarine
geologic data based on surveys.
The government acknowledges that any
delay which could result from a failure to initiate the surveys should be avoided by using
the results of wind condition simulations or
NEDO’s (Japan’s New Energy and Industrial
Technology Development Organization)
offshore wind condition maps to swiftly
designate the Promotion Zones and roll out
public auctions.
1.3.5 Examination and evaluation
process for the selection of
business operators
The government will select the business
operator who submits an occupancy plan
that (i) conforms to the required standards
including those set out at item 3 (Qualification of participants in a public auction) above
and (ii) is the most appropriate for enabling
a long-term, stable and efficient power busi-
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ness. The government will seek the opinions
of prefectural governors to determine how
well the business operator can coordinate
with local stakeholders and the impact of
the project on the local economy. Business
operators must undertake that they will not
contact, and will be prohibited from contacting, any local stakeholders during the auction process. Any breach of this undertaking
or prohibition will result in penalties being
imposed on the business operator. The operator could be banned from participating in
the public auction in question or suspended
from participating in public auctions for a
certain period of time.
In terms of how long this process may take,
the government is targeting a six-month
period from the commencement of a public
announcement of the auction guidelines
to the submission of occupancy plans by
business operators.
1.3.6 The Offshore Wind Promotion
System
Under the Renewable Energy Sea Areas
Use Law, Promotion Zones are designated
by METI and MLIT, and public occupation
guidelines are then prepared for each area.
Based on these guidelines, a public auction is initiated and an occupancy plan is
submitted by the operator. At the end of
the process, the most appropriate business
operator will be selected, the plan will be
certified, and an occupancy right for up to
30 years will be granted by MLIT.
Based on the basic policy set forth in Articles 7 and 8 of the Renewable Energy Sea
Areas Use Law, as of 30th September 2022,
