European wind power giant to build Japan assembly plant by FY 2029

TOKYO – A European wind power giant will build a plant in Japan by fiscal 2029 to assemble turbine components, as the country seeks to expand its use of renewable energy.

The facility to be established by Danish company Vestas Wind Systems A/S with support from the Japanese government will assemble nacelles, the housings atop wind turbine towers that contain major machinery such as the generator and gearbox.

A memorandum of cooperation was signed Monday with Japan’s Ministry of Economy, Trade and Industry, which is working to build a robust domestic supply chain for offshore wind power.

“The move will lead to restructuring of the domestic wind turbine industry and reduction of power generation costs in the future,” said Kenji Yamada, senior vice minister of the ministry, during the signing ceremony.

Vestas, based on discussions with the ministry, has also formulated a road map toward the establishment of a fully integrated nacelle manufacturing base in Japan by fiscal 2039.

The new base is expected to significantly contribute to ensuring stable supply of decarbonized power, according to the government. Japan aims to achieve a domestic procurement ratio of 65 percent or higher by 2040 toward the steady rollout of offshore wind power.

Last year, a consortium led by Mitsubishi Corp. withdrew from domestic offshore wind projects off the coasts of Akita and Chiba prefectures due to rising construction costs.

While the scale and location for the manufacturing base remain unknown, officials of interested municipalities — Muroran, Akita and Kitakyushu — attended Monday’s ceremony.

Separately, Vestas signed memorandums of understanding with Japanese heavy-lift and transport company Denzai K.K. and logistics firm Nippon Express Co. as part of efforts to strengthen supply chains.

Global share of electricity generated by wind and solar combined rose to 15 percent in 2024 from around 2 percent in 2011, and renewables overtook coal’s share in the global electricity mix in the first half of 2025, according to energy think tank Ember.