Business model to expand wind energy domination of offshore wind energy

Abstract

Energy risk is an important problem in Japan because Japan lacks natural energy resources such as oil and gas. Wind power generation is expected to be one main future energy for Japan because it is renewable energy (environmentally burden free) and does not require import (energy security free). To expand wind energy in Japan, a new wind power generation entrepreneur should enter into business where a profitable model can be achieved. In this study, we investigated the current Japanese wind energy business style. There are few major corporate groups in the wind energy business that account for 60 percent or more of the market. The actual selling price of electricity to a power company was investigated with a questionnaire and the current profit is discussed. It is difficult with the present selling price of the market to raise earnings. The efficiency of businesses should be improved by making production large scale. Recently, the expansion of wind energy is remarkable worldwide, but, expansion is sluggish in Japan because of various factors. Problems exist with procuring sites, policies, selling price, quality of electricity, predicting the premeditated supply and other factors. In the near future, offshore wind energy is expected to be a major renewable energy. Offshore wind energy is weak because of the initial costs. However, in Europe, offshore wind energy plants are increasing, and the initial costs are similar to land wind energy plants, so the business profits may be higher for offshore wind energy. A new wind energy business model is expected, not only in terms of policies, but the original profitability should become high and expand rapidly throughout the world.