Japan’s Wind Woe: Offshore Energy "Just Blowing in the Wind," By James Reed

Mitsubishi Corporation, a titan of Japanese industry, just pulled the plug on three massive offshore wind projects in Akita and Chiba prefectures, citing costs that more than doubled, rendering them financially DOA. This isn't just a local hiccup, it's a screaming alarm bell echoing a global trend where offshore wind's economic pipe dream is crashing hard. From the U.S. to Europe, projects are tanking under skyrocketing costs, exposing the harsh truth: Wind energy's been sold as a sustainable savior, but it's "just blowing in the wind," a costly, subsidy-guzzling fantasy that's crumbling under its own weight.

Back in 2021, Mitsubishi-led consortia snagged contracts for offshore wind farms in Akita (two sites) and Chiba, bidding aggressively at 8-11 cents per kilowatt-hour (kWh). It was a coup, hailed as proof Japan could lead the renewable charge. Fast-forward to October 2025: CEO Katsuya Nakanishi drops a bombshell, admitting costs ballooned over 100% due to soaring steel prices, turbine expenses, logistics nightmares, a weakening yen, and rising interest rates. The result? A jaw-dropping 52.2 billion yen ($354 million) in impairment losses, with no path to recover even the initial investment.

Nakanishi's diagnosis was blunt: "We thoroughly examined every possible measure, but the economic case had collapsed." Even government tweaks to allow higher power prices couldn't save it. Mitsubishi's exit isn't a one-off, it's a mirror reflecting global flops. In the U.S., Ørsted axed two New Jersey projects, eating billions in losses; BP and Equinor bailed on New York contracts after 40% cost spikes. In Europe, Vattenfall halted its Norfolk Boreas project in 2023 for the same reason: Costs up 40%. The pattern's clear, offshore wind's a money pit, and even industrial giants can't make it work without a taxpayer lifeline.

Here's where the green fantasy gets slippery. Proponents love touting the Levelized Cost of Electricity (LCOE), which pegs offshore wind at 12-16 cents/kWh, suggesting it's closing in on fossil fuels or nuclear (10-14 cents/kWh for gas, 12-14 for nuclear). Sounds competitive, right? Wrong. LCOE is a narrow metric, ignoring the Full Cost of Electricity (FCOE), the real price when you factor in grid upgrades, backup power for when the wind doesn't blow, subsidies, and decommissioning aging turbines. FCOE for offshore wind? A brutal 20-30 cents/kWh, dwarfing alternatives.

Japan's case exposes this sleight-of-hand. Policymakers hype falling LCOE while sweeping FCOE under the rug, creating an illusion of affordability. But intermittency kills: Wind farms need gas or coal backups, and grid expansions to handle their unpredictable output cost billions. In Japan, a 2024 METI report admitted grid constraints are a major hurdle, with offshore projects requiring massive infrastructure investments that taxpayers foot. Decommissioning? Turbines last 20-25 years and recycling those giant blades is a logistical and financial nightmare, rarely accounted for in rosy projections.

Despite Mitsubishi's exit, Japan's clinging to its dream of 45 gigawatts of offshore wind by 2040, a target baked into its carbon-neutral 2050 plan. The government's response to corporate pullouts? Call them "temporary setbacks" and throw more subsidies at the problem. It's become a public works boondoggle: Ports, construction firms, and trading houses rake in taxpayer cash while delivering energy that's neither reliable nor cheap.

This isn't unique to Japan. Globally, offshore wind's collapse exposes a pattern: Governments prop up unviable projects to signal virtue, while corporate players like Mitsubishi jump ship when the maths doesn't lie. X posts from energy analysts echo this: "Offshore wind was always a subsidy sinkhole, Japan's just the latest to learn the hard way." The UK's seen similar, SSE and Equinor scrapped projects as costs soared 30-50% above bids.

Let's get real: The green energy push isn't about saving the planet; it's about power and profit. Offshore wind's a poster child for corporate welfare; government handouts keep it afloat while utilities pass costs to consumers. In Japan, electricity prices rose 20% from 2020-2024, hitting households hard, yet wind's share remains under 2% of the grid. Meanwhile, nuclear, reliable, low-carbon, sits underutilised due to post-Fukushima paranoia, despite being cheaper at scale.

The fantasy's collapsing because reality doesn't bend to ideology. Wind's intermittency, high FCOE, and reliance on finite materials (rare earths, steel) make it a lousy bet. Japan's industrial might couldn't crack it; Mitsubishi's retreat proves even the big dogs can't outrun bad economics. Globally, cancellations signal the same: The U.S. lost 4 GW of planned capacity in 2023-24; Europe's shedding projects faster than it can build.

A Global Warning: Stop Chasing the Wind

Japan's wind disaster is a wake-up call: Green dogma can't trump maths. Offshore wind's not sustainable, it's a subsidy-soaked mirage that's "just blowing in the wind," leaving taxpayers and consumers to clean up the mess. The fix? Pivot to proven low-carbon options like nuclear, streamline grids, and ditch selective cost reporting. Keep fossil fuels.If Japan's industrial giants can't make wind work, no one can. Time to stop chasing fantasies and face reality.

https://www.naturalnews.com/2025-10-08-japan-green-energy-collapse-economic-fantasy.html