August 26, 2022
EBC statement on the public offering system for offshore wind power
generation
European Business Council in Japan (EBC) has compiled recommendations on theoffshore wind power generation public offering system, which is currently underreview. The aim of this proposal is to make offshore wind power generation a mainstay
power source in Japan. EBC has compiled this proposal as common view based on theexperience we have cultivated through repeated trials and errors in Europe. We would
like to express my opinion as follows.
The recent global energy situation has led to more aggressive plans for the introductionof offshore wind power generation in various countries, and we recognise that arevision to an open recruitment system is needed in Japan at this stage. On the otherhand, considering international market trends, we also recognise that in order toimprove Japan's attractiveness as an offshore wind market, it is particularly importantto 1) ensure the fairness, fairness and transparency of the competitive environment,
and 2) promote planned, continuous and large-scale offshore wind power generation.
１． To ensure the fairness, fairness, and transparency of the competitiveenvironment:
In order to accelerate the introduction of renewable energy power generation, theEBC understands the significance of making revisions to the assessment system
to encourage more swift business planning. On the other hand, in evaluating thespeed of business plans, we believe that it is necessary to sufficiently assess thereliability of offshore wind power generation project performance and projectplans of publicly recruited participants, so as not to impair their feasibility, andthen compete under transparent rules to the extent that fairness and fairness canbe guaranteed. Regarding the items for evaluating the speed of the newly added
business plan as a result of this review, the following recommendations are made.
✓ To devise a balance of points so that plans for which the feasibility of thebusiness is not guaranteed are not overvalued solely by speed. In addition,in confirming the basis of the business plan in terms of businessfeasibility, the actual results of offshore wind, including foreign market
such as European, should be focused and evaluated, taking into accountthe number of offshore wind, rather than on-shore wind, where necessary
technicals and risks differ.
✓ In considering the evaluation method (how many years or months thenumber of points will be different), consideration should be given to thetiming of port use, the period required for procedures such asenvironmental assessments and various permits, and a reasonable periodof competition should be established so that the public participants cancompete under fair conditions, and transparency should be ensured byclarifying the basis for the establishment of the evaluation method. In
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Tel: 03-6807-5932 | E-mail: ebc@ebc-jp.com | URL: http://www.ebc-jp.com

addition, the government should strive to shorten the relevant procedures
so that public procedures such as environmental assessments and safety
review do not become a bottleneck to accelerate the start of operations.
✓ To encourage realistic recommendations by setting individual
circumstances (such as the development and availability of base ports,
the status of grid development, etc.) in each area, rather than the same forall public offerings conducted at the same time when setting the reference
date for promptness assessment.
２． For the promotion of planned, continuous and large-scale offshore wind power
generation:
The goal of the "Basic Policy for Comprehensive and Planned Promotion ofMeasures for Promoting the Utilization of Ocean Areas Related to theDevelopment of Offshore Renewable Energy Power Generation Facilities"
approved by the Cabinet on May 17, 2019 includes the following: ① theimportance of introducing cost-competitive power sources to curb theburden on the people; and ④ the goal of "the systematic and continuous
promotion of offshore wind power for the sound development of offshore
wind Industry in Japan." In connection with this, the following
recommendations will be made.
✓ In order to promote investment to introduce cost competitive powersources, in addition to planning and continuity, the viewpoint of the scaleof the project is important. To increase the willingness of operators toinvestment and to increase the priority of international suppliers such as
turbine manufacturers to the Japanese market, the capacity of equipment
per public recruitment case should be expanded to foreign market
equivalents (1GW grade), and a planned and rapid case formation should
be conducted. At the same time, the total capacity of maximum electricity
receipts in the areas to be publicly offered shall be set at the same size
(several GW or more) as that of foreign market.
✓ In cases where bidding restrictions are imposed on multiple-areaparticipants, particularly in situations where projects of adequate size
have not been formulated, careful operation should be conducted, taking
into account the possibility that Recommendations of competitive
business managements and the formation of domestic supply chains may
be hindered, which may lead to excessive diversification.
✓ Regarding the formation of consensus with ocean leading users and local
residents, which are indispensable for realising the planned andcontinuous promotion of introduction, there are concerns that different
plan proposals will be presented at the same time by multiple operators
in a manner that is individually approached for project formation.
Therefore, there are concerns that this will cause confusion tostakeholders. Therefore, the government will swiftly switch to a methodof systematically advancing zoning and the establishment of publicly

Toranomon Hills Business Tower. 15F 1-17-1 Toranomon, Minato-ku Tokyo 105-6415 Japan〒105-6415 東京都港区虎ノ門 1-17-1 虎ノ門ヒルズビジネスタワー15階
Tel: 03-6807-5932 | E-mail: ebc@ebc-jp.com | URL: http://www.ebc-jp.com

offered areas by establishing plans for the use of ocean areas under theinitiative of the national government.
✓ Early determination of offshore areas eligible for public offering prior tothe transition to the central method, and increasing the predictability ofbusinesses with respect to the timing of public offerings and the publicoffering system.

Toranomon Hills Business Tower. 15F 1-17-1 Toranomon, Minato-ku Tokyo 105-6415 Japan〒105-6415 東京都港区虎ノ門 1-17-1 虎ノ門ヒルズビジネスタワー15階
Tel: 03-6807-5932 | E-mail: ebc@ebc-jp.com | URL: http://www.ebc-jp.com