China and Japan Strengthen Cooperation on Offshore Wind Energy Capacity Compensation
On March 25, 2025, the National Energy Administration of China announced a collaborative effort between China and Japan to enhance offshore wind energy capacity compensation mechanisms. This initiative aims to address recent developments in the energy sector and is outlined in a report released by the administration.
During the week of March 17-21, 2025, the report highlighted the ongoing changes in new energy generation, particularly focusing on offshore wind developments. The report stated that the offshore wind energy sector has seen a 2.31% increase, with a total capacity of 866,044 MW and a market share of around 4.61%. By the end of this week, the average price of wind energy was estimated at 20.56.
In the same period, the price index for solar energy (801735.SI) saw a decrease of 1.00%, while the overall solar power capacity dropped by 1.06%. Additionally, the price index for wind energy components decreased by 2.20%, bringing the current price index for solar energy to approximately 34.34.
The report further emphasized the importance of joint collaboration in offshore wind projects between China and Japan. On March 17, a meeting was held where both countries discussed energy cooperation, leading to the signing of a memorandum titled “China-Japan Offshore Wind Energy Cooperation Framework Agreement.” This agreement establishes a foundation for future collaborations in offshore wind energy, which is expected to be a significant focus area moving forward.
Japan, being the largest market for offshore wind energy in Asia, has set ambitious goals for its offshore wind capacity. However, it currently faces challenges related to supply chain constraints and the integration of renewable energy into the existing infrastructure.
In recent times, the offshore wind energy sector in Japan has experienced a boom, with the government promoting the establishment of offshore wind farms and other renewable energy projects. As part of this effort, the National Energy Administration of China has also engaged in discussions to facilitate the development of offshore wind energy projects in Japan.
According to the latest statistics, Japan’s offshore wind capacity has reached 39.47 GW as of March 20, 2025, reflecting a 7.5% increase compared to the previous year. The National Energy Administration of China is collaborating with Japanese authorities to further enhance offshore wind development in the region.
Looking ahead, both countries are committed to refining the compensation mechanisms for offshore wind energy projects. The new compensation standard is set to be implemented by June 30, 2025, with a target rate of 0.35 ¥/kWh. This will allow for a more streamlined process for energy compensation, with adjustments made annually in September.
In conclusion, the collaborative efforts between China and Japan in offshore wind energy signify a substantial step towards enhancing renewable energy capacities and addressing the challenges faced in this sector. The agreements and initiatives established will pave the way for future advancements in offshore wind energy and contribute to the global transition towards sustainable energy.
