Offshore wind is poised to lead regional revitalisation in Japan’s Akita Prefecture if backed by bold investments and policies. ERM Japan and Ocean Energy Pathway’s new report examines how offshore wind projects in Akita Prefecture contribute to economic growth, job creation, and local value – while highlighting opportunities for further impact.
Crucially, the report situates offshore wind’s economic potential within Akita Prefecture’s pressing demographic challenges. With the region experiencing significant population decline and an aging demographic – the worst among Japan’s 47 prefectures – the study underscores offshore wind’s role in regional revitalisation. By creating jobs, boosting local incomes, and attracting new investment, offshore wind could breathe new life into the local economy.
Key takeaways
- As a leader in Japan’s offshore wind sector, Akita Prefecture has already made significant strides in boosting the industry’s economic benefits for the region
- New analysis by ERM Japan and Ocean Energy Pathway finds that with the right policy and investment strategies, offshore wind projects could generate 356 billion JPY (2.38 billion USD) of gross value added, an amount that could grow to 570 billion JPY (3.81 billion USD) through further measures to promote local procurement.
- Close coordination and cooperation between policymakers, industry leaders and civil society groups, both in Akita Prefecture and throughout Japan, is expected to be critical for the successful and sustainable development of the local offshore wind supply chain.
Offshore Wind Development and Its Local Socio-Economic Impact in Akita Prefecture
Download PDFThe study, based on local stakeholder input reflecting the current state of the offshore wind market, shows possible and potential scenarios for the socio-economic benefits of offshore wind in Akita Prefecture.
N.B. the Japanese language version of the report is available here.
Akita Prefecture is a domestic leader in Japan’s offshore wind sector and offers a clear case study for how the industry and its supply chain can deliver substantial social and economic benefits. With 140 MW of capacity already in operation, 2,100 MW under development, and a further 400 MW under consideration for future auction rounds, Akita Prefecture is well-placed to spearhead Japan’s push to build out renewable energy.
The study evaluates the gross value added (GVA) and local employment impact through both “possible” and “potential” scenarios—demonstrating that, under current conditions, offshore wind projects could generate a GVA of approximately 356 billion JPY (2.38 billion USD) and support nearly 34,000 jobs. With feasible investments aimed at boosting local supplier capabilities, these figures could rise to around 570 billion JPY (3.81 billion USD) and 52,000 jobs over the projects’ lifespans.
This study offers a clear roadmap for maximising the positive local impacts of offshore wind and building resilient supply chains.
Akihiko Kurashina, Japan Country Head (OEP)
Recommendations
Drawing upon an input–output methodology enhanced by ERM’s proprietary offshore wind project cost model (LEnSTM), the report provides an independent analysis of the economic spillover effects associated with Akita’s eight offshore wind projects. Key recommendations include:
- Maximising local participation in O&M: Emphasising the long-term role of local companies in operation and maintenance (O&M) activities to secure sustainable local involvement.
- Creating long-term offshore wind pipeline: Advancing discussions on future fixed-bottom and floating wind projects to provide certainty for local suppliers and long-term industry growth.
- Coordinated supply chain development: Calling for collaborative frameworks among project developers to harness synergy opportunities across the region.
- Multi-prefectural collaboration: Encouraging joint efforts with neighboring prefectures to promote initiatives for an internationally competitive supply chain.
- Human resource development: Promoting initiatives to cultivate and retain local talent, vital for countering Akita’s ongoing demographic challenges.
- Maximising economic benefits: Leveraging clean electricity from offshore wind to attract new businesses and industries, amplifying the economic impact beyond energy generation.
Media
- Press release (Eng)
- Press release (Jap)