Introduction
Evaluating the profitability of offshore wind projects requires close attention to cost-related indicators such as CAPEX, OPEX, LCOE, and IRR.
However, in Japan’s designated Promotion Zones, publicly available cost data remain scarce, leaving investors and developers with limited information for decision-making.
In this article, we assess the Nagasaki Saikai Enoshima Offshore Wind, estimating CAPEX, OPEX, LCOE, and IRR using the NEDO cost model, based on representative site conditions including distance to shore, water depth, and distance to port.
While these figures are independent estimates, they provide useful insights into the characteristics of this zone and a basis for relative comparison with other areas.
This article focuses not on project progress or policy background, but on the cost analysis. If you would like to learn more about the project overview of the Nagasaki Saikai Enoshima Offshore Wind Project, please see the article below.
👉 Nagasaki Saikai Enoshima Offshore Wind Power Project
1. Area Overview
- Area Name: Nagasaki Saikai City Enoshima Offshore
- Location: Offshore saikai enoshima, nagasaki Prefecture
- Estimated Capacity: 420 MW
- Status: Promotion Zone
- Developer: Sumitomo Corporation, TEPCO
2. Assumptions (Representative Values)
In this article, the representative point was set at the center of the designated promotion area polygon based on its coordinates. Water depth and distance conditions were estimated using data from NeoWins.
| Item | Estimated Value | Notes |
|---|---|---|
| Water Depth (m) | 13 m | Depth at representative point |
| Distance to Shore (km) | 0.1 km | Shortest distance to landfall point |
| Distance to Port (km) | 20.3 km | Straight-line distance to assumed O&M port |
3. CAPEX / OPEX Estimates
CAPEX and OPEX were independently estimated by DeepWind with reference to NEDO’s Offshore Wind Cost Model.
| Foundation type | Estimated CAPEX | Estimated OPEX |
|---|---|---|
| Monopile | USD 1050 Million | USD 18 Million/year |
4. LCOE Estimate
The LCOE was independently estimated by DeepWind with reference to NEDO’s Offshore Wind Cost Model and NeoWins data.
| Foundation type | Estimated LCOE |
|---|---|
| Monopile | 96 USD/MWh |
5. IRR Estimate
| Price conditions | Estimated IRR | Power Selling Price | Assumed Operating Period |
|---|---|---|---|
| Bid Price | 13.1 % | 22.18 yen/kWh | 25 years |
6. Profitability Rating (DeepWind Independent Evaluation)
| Evaluation Metric | Score (★1–5) | Result |
|---|---|---|
| Profitability (Expected Price) | ★★★★★ | Very Promising |
| Overall Rating | S Rank | Both investment viability and power generation efficiency are exceptionally high. A zone that should be given top priority. |
Conclusion
The Nagasaki Saikai Enoshima Offshore Wind project stands out primarily due to its high awarded bid price of 22.18 yen/kWh, which drives the strong profitability reflected in an IRR of 13.1%. While the overall evaluation places it in the S Rank (Very Promising) category, the project’s long-term economics will be heavily influenced by the final decision on the grid connection point (landfall). Transmission distance and associated costs could materially impact profitability, making grid connection strategy a critical factor for investors and developers to monitor.
DeepWind will continue to deliver independent cost assessments of Japan’s offshore wind promotion zones, helping investors and developers benchmark opportunities and better understand the market’s evolving economics.
If you would like to compare the CAPEX, OPEX, LCOE, and IRR of other Promotion Zones, please also check out this summary article.
🌊 Cost Analysis of Japan’s 12 Offshore Wind Promotion Zones
Explore more categories at DeepWind:
- 🔍Market Insights – Understand the latest trends and key topics in Japan’s offshore wind market
- 🏛️Policy & Regulations – Explore Japan’s legal frameworks, auction systems, and designated promotion zones.
- 🌊Projects – Get an overview of offshore wind projects across Japan’s coastal regions.
- 🛠️Technology & Innovation – Discover the latest technologies and innovations shaping Japan’s offshore wind sector.
- 💡Cost Analysis – Dive into Japan-specific LCOE insights and offshore wind cost structures.
