New offshore wind projects in Akita Prefecture could generate $2.5 billion

Offshore wind projects in Akita Prefecture, in Northern Japan, could generate around ¥356 billion ($2.5 billion) in economic value and create 34,000 jobs. That is according to a comprehensive joint report from consultancy ERM and Ocean Energy Pathway that explores the potential for offshore wind.

The world is at a crossroads when it comes to climate change: countries around the world are racing to install more renewable energy capacity in order to meet global climate goals like the Paris Agreement. Japan, for their part, has set a target to reach up to 50% renewable energy by 2040.

As of 2024, the share of renewables in Japan’s total electricity generation was 32%, with wind and solar making up 11% of that total. Japan is looking to expand their renewable energy production, with offshore wind a promising form of energy for the island nation.

The report from ERM and Ocean Energy Pathway analyzed the impact that offshore wind installations could have on the local employment. The higher end of the estimation – with high levels of investments in local suppliers – can actually create value worth ¥570 billion ($3.9 billion) and around 52,000 jobs.

Akita Prefecture in particular has emerged as a leader in offshore wind generation in Japan. Offshore wind installations are mainly concentrated in the northeast of Japan where strong winds prevail. The existing installations in Akita Prefecture currently generate 140 MW of capacity, with another 2,100 MW in development.

The report is “a significant step forward in our shared commitment to not only harness offshore wind power in Japan, but to also ensure that its benefits extend to local communities,” said Takayuki Shibata, partner of ERM in Japan. “Our detailed analysis provides actionable insights that can help the local industry seize the opportunities created by offshore wind, ultimately contributing to a more vibrant regional economy.”

Going local

Recommendations in the report include getting local companies involved as much as possible, prioritizing long-term growth in the offshore wind pipeline, coordinating supply chains across the region, promoting local talent, and working to attract more clean energy business to the region.

There are also some obstacles to overcome, like for instance a looming demographic challenge that Akita Prefecture as a whole will need to confront. Due to an aging demographic, the region is experiencing significant population decline – the worst in all of Japan.

New offshore wind projects could be part of a local revitalization that brings in new employment opportunities and could boost businesses in related sectors. If this new business activity in offshore wind energy can sustain younger people in the Akita communities, it could have a ripple effect on the wider local economy.

“Offshore wind is set to be a key pillar of Japan’s energy ambitions, and offers significant social, economic, and climate benefits,” said Akihiko Kurashina, Japan Country Head at Ocean Energy Pathway.

“This study offers a clear roadmap for maximizing the positive local impacts of offshore wind and building resilient supply chains. In Akita Prefecture and throughout Japan, cooperation between policymakers, industry leaders, and civil society groups will be crucial to sustainably scaling up the sector and unlocking these benefits,” he added.