Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 142
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ritorial sea area can now be occupied for up
to 30 years, (ii) clarifies the rules for adjusting stakeholders’ interests and (iii) introduces a public auction system to promote
the development of long-term, stable and
efficient power generation businesses.
Japan’s Ministry of Economy, Trade and
Industry ("METI") and Japan’s Ministry of
Land, Infrastructure, Transport and Tourism
("MLIT") have held several joint meetings
on the Renewable Energy Sea Areas Use
Law since its enactment. In June 2019, they
issued the Guidelines for the Designation of
Promotion Zones (which were amended in
July 2021) and the Guidelines for Operation
of the Occupation Auction System in Territorial Sea Areas (both guidelines collectively,
the "Guidelines"). Business operators who
intend to submit a bid in a public offering
need to understand and follow the Guidelines.
1.2 Operation under the Renewable
Energy Sea Areas Use Law
In the selection of Promotion Zones, the
following four principles are key:
(a) Long-term, stable and efficient implementation of the energy business;
(b) Harmonization of diversified use of ocean areas and resources (for example, coordination with incumbent stakeholders
such as those in the fishing and shipping
industries);
(c) Implementation of a fair, impartial and
transparent system;
Japan
(d) Promotion of a well-planned and sustainable offshore wind power industry (i.e.,
creating a supply chain network to realize
a rapid reduction in project costs and
recovery from malfunction or disaster);
Policy obstacles must be dealt with appropriately to achieve the Renewable Energy
Sea Areas Use Law’s policy goal. Examples of
such obstacles are the financial burden on
the national government created by subsidy
programs, and restrictions on regional grid
systems.
1.3 Designating Promotion Zones
1.3.1 Standards for designating
Promotion Zones
Six conditions must be satisfied for an area
to be designated as a Promotion Zone.
These are as follows:
(a) Predictable natural conditions (including, amongst others, climate and
hydrographic conditions) and minimum
energy output.
(b) The Promotion Zone must be feasible
from a business and safety perspective.
The facility’s long-term usage rate must
be maintained while minimizing the facility’s operation and maintenance costs
(for example, indicative wind speed of
7m/s while maintaining a 30% capacity
factor and, for fixed-foundation turbines,
water area depth of less than 30m).
(c) The Guidelines refer to projects in the
European market with sizes ranging
between 30MW and 350MW. When
the Japanese government considers
