Japan: The Land of the Rising Wind

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Japan represents a substantial new market opportunity for the wind industry.

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Japan: The Land of the Rising Wind

  1. 1. Japan: Land of the Rising Wind
  2. 2. Significant market opportunity • All nuclear plants shut down pending safety checks • Spending increase to about $29.5 billion on fossil fuel imports Since the Fukushima accident in March 2011 Source: CIA
  3. 3. Significant market opportunity • Japan Wind Power Association revises 50 GW target to 75 GW by 2050 2.5 GW of capacity in 2010 Source: Siemens
  4. 4. Government developing infrastructure Launched a 5-year, $162 million project • Aimed to better integrate wind power to grid • Development of wind power output prediction service to better forecast high wind power supply • Based on successful integration system used in Spain
  5. 5. Offshore wind potential • Ministry of Environment estimates offshore potential alone at about 1,000 GW • 4 projects totaling 254 MW in development • Government recently raised feed-in-tariff but industry says it’s still insufficient • Developing projects with floating turbines to operate in deep water Currently, there are 49.6 MW of offshore wind capacity (including 4 MW of floating turbines)
  6. 6. Offshore wind investment • Softbank subsidiary, SB Energy, providing investment • Wind Power Energy to develop a 90 MW project • 18 turbines to be located 600 meters to 1,600 meters off of Kamisu • Expected to be operational in 2017 First commercial offshore project in development
  7. 7. Competitive landscape • Danish wind turbine manufacturer • Has most installed capacity in Japan • Entered into offshore wind joint venture with Mitsubishi which will better position the company to compete in offshore wind projects Vestas Wind Systems Courtesy Vestas Wind Systems A/S
  8. 8. Competitive landscape • Developed a 2.85 MW turbine specifically for the Japanese market • New turbine can withstand typhoon- strength winds, lightning strikes, and turbulent conditions • Second to Vestas in market share General Electric Courtesy: GE
  9. 9. Competitive landscape • Currently has 123 MW of installed capacity • Recently won a 17- turbine supply contract for a project on the northwest coast • In 2013, won a 6-turbine supply contract, for Akita Port, to debut direct-drive technology Siemens AG Courtesy: GE Source: Siemens
  10. 10. Foolish takeaway Experts agree that wind power will gain favor similar to solar power’s popularity • Vestas, GE, and Siemens are all well-positioned to profit from the growing popularity of wind power in Japan • Despite trading at 52-week highs, Vestas offers the greatest growth potential as it is a pure-play on wind
  11. 11. Do You Know This Energy Tax “Loophole”?

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