Japan: The Land of the Rising Wind
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Transcript of Japan: The Land of the Rising Wind
![Page 1: Japan: The Land of the Rising Wind](https://reader035.fdocuments.us/reader035/viewer/2022081412/53f1c1808d7f72e94b8b4b27/html5/thumbnails/1.jpg)
Japan: Land of the Rising Wind
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Significant market opportunity
• All nuclear plants shut down pending safety checks
• Spending increase to about $29.5 billion on fossil fuel imports
Since the Fukushima accident in March 2011
Source: CIA
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Significant market opportunity
• Japan Wind Power Association revises 50 GW target to 75 GW by 2050
2.5 GW of capacity in 2010
Source: Siemens
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Government developing infrastructure
Launched a 5-year, $162 million project
• Aimed to better integrate wind power to grid• Development of wind power output prediction service
to better forecast high wind power supply• Based on successful integration system used in Spain
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Offshore wind potential
• Ministry of Environment estimates offshore potential alone at about 1,000 GW
• 4 projects totaling 254 MW in development• Government recently raised feed-in-tariff but industry
says it’s still insufficient• Developing projects with floating turbines to operate in
deep water
Currently, there are 49.6 MW of offshore wind capacity (including 4 MW of floating turbines)
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Offshore wind investment
• Softbank subsidiary, SB Energy, providing investment
• Wind Power Energy to develop a 90 MW project• 18 turbines to be located 600 meters to 1,600
meters off of Kamisu • Expected to be operational in 2017
First commercial offshore project in development
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Competitive landscape
• Danish wind turbine manufacturer
• Has most installed capacity in Japan
• Entered into offshore wind joint venture with Mitsubishi which will better position the company to compete in offshore wind projects
Vestas Wind Systems
Courtesy Vestas Wind Systems A/S
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Competitive landscape
• Developed a 2.85 MW turbine specifically for the Japanese market
• New turbine can withstand typhoon-strength winds, lightning strikes, and turbulent conditions
• Second to Vestas in market share
General Electric
Courtesy: GE
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Competitive landscape
• Currently has 123 MW of installed capacity
• Recently won a 17-turbine supply contract for a project on the northwest coast
• In 2013, won a 6-turbine supply contract, for Akita Port, to debut direct-drive technology
Siemens AG
Courtesy: GESource: Siemens
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Foolish takeaway
Experts agree that wind power will gain favor similar to solar power’s popularity• Vestas, GE, and Siemens are all well-positioned to
profit from the growing popularity of wind power in Japan
• Despite trading at 52-week highs, Vestas offers the greatest growth potential as it is a pure-play on wind
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