Offshore Wind Worldwide 2022 edition - Flipbook - Page 124
124
Hogan Lovells
Japan
In evaluating each business operator’s
ability to coordinate with local
stakeholders and the project’s impact
on local economy, the government will
consider, among other things, (i) the
operator’s key personnel who will be
coordinating with the heads of the
relevant administrative bodies, (ii) the
operator’s relationship and
co¬existence with the fishery business
operators and shipping companies and
(iii) any impact on the national or local
economies.
b)The power facility’s output standard
The business operator may propose a
total output for its project within ±20%
of the total output set out for that
project when the promotion zone is
designated by METI and MLIT.
c)Qualification of participants in a public
auction
The business operator must be a legal
entity established in Japan in order to
participate in a public auction. A
foreign investor may qualify for an
auction only if it has a legal entity
incorporated in Japan or if it invests
through an affiliated Japanese entity,
such as a joint stock company
(kabushiki kaisha) or a limited liability
company (godo kaisha).
The business operator will be
suspended from participating in public
auctions if it (i) has grid connection
rights and fails to assign them to the
Selected Business Operator without any
valid reason, (ii) provides forged or
false information to the government in
connection with the designation of a
promotion zone or (iii) participates in
or leads a bid-rigging (dango) scheme
in connection with any public auction.
d)Base ports
In order to designate a promotion zone
it will be necessary to confirm the size
of the power facilities to be installed as
well as identify the base ports within
the zone that will enable efficient
installation and maintenance of such
power facilities.
The base ports should, among other
requirements, be fitted to accommodate
the use of self-elevating platform (SEP)
vessels, have a load-bearing quay and
pier zones with sufficient space. A base
port may need to be fitted to
accommodate uses of multiple power
facilities within a single designated
promotion zone.
e)Decommissioning
The business operator must provide a
technical and financial plan to
decommission the power facilities upon
expiry of the occupancy period. The
financial plan may include use of
third-party guarantees or a reserve
account mechanism. The scope of
decommissioning works currently
remains under consideration as no
consensus has been formed on feasible
methods for decommissioning base
ports and the related costs. An element