【Article】Recent Trends and Law Amendments Regarding Offshore Wind-Power Generation Business

ナレッジパートナー：越元 瑞樹

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2. Partial Amendment to the Port and Harbor Act

A law amending part of the Port and Harbor Act (Cabinet Order No. 15; the “Amendment” and such Port and Harbor Act as amended by the Amendment, the “Amended Port and Harbor Act”) was passed by the 200th Diet on November 29, 2019 and fully enforced on February 14, 2020. In relation to offshore wind-power generation business, the Amendment mainly changes the following two points:

(1) Introduction of a system for designation of base ports and harbors for offshore renewable energy power generation facilities (“Base Ports and Harbors”) (Article 2-4 of the Amended Port and Harbor Act) and a system for leasing public property constituting a wharf which handles an offshore renewable energy power generation facility (Article 55-2 of the Amended Port and Harbor Act);

(2) Extension of the validity of the certified period for the occupation plan proposed through the public bidding process in port and harbor areas (Article 37-3, Paragraph 4 of the Amended Port and Harbor Act).

In relation to (1), the introduction of rules for general sea areas for offshore wind-power projects under the Offshore Renewable Energy Usage Act has been expected to promote the introduction of offshore wind-power generation business within general sea areas. Thus, there is now an increasing need to introduce a system aimed at achieving long-term, stable usage of wharves in order to handle the colossal and weighty materials and equipment relating to offshore wind-power generation facilities, which is the background leading to the Amendment.

The details of the above-mentioned system are as follows: the Amendment will establish a system wherein the government will (i) designate a Base Port and Harbor for the transportation of necessary personnel and goods, and (ii) lease wharves and other port facilities inside the Base Port and Harbor to power generation business operators (Article 2-4 of the Amended Port and Harbor Act) in relation to (a) offshore renewable energy facilities defined in Article 2, Paragraph 2 of the Offshore Renewable Energy Usage Act, as well as (b) facilities and structures contributing to the use of renewable energy sources (Article 2, Paragraph 4 of the Act on Special Measures Concerning Procurement of Electricity from Renewable Energy Sources by Electricity Utilities (the “Renewable Energy Special Measures Act” ).

In relation to (2), at the time of the previous amendment of the Port and Harbor Act in 2016, there was an amendment to such law in order to establish a system which permits offshore wind-power operators to occupy a certain sea area inside a port and harbor based on their occupation plan proposed through the public bidding process (Article 37-3 of the Port and Harbor Act), and such certified occupation period based on such occupation plan was set as 20 years. However, considering the 20-year procurement period granted under the Renewable Energy Special Measures Act and the time needed for construction and decommissioning, the 20-year period was still insufficient to cover the entire business period for the offshore wind business operators. The Amendment provides for an additional period of 10 years, on top of the maximum 20-year certified period before this Amendment, and this makes up a total possible period of 30 years (Article 37-3, Paragraph 4 of the Amended Port and Harbor Act). In this regard, certified business operators that are permitted to occupy general sea areas under occupation plans through a public bidding process pursuant to the Offshore Renewable Energy Usage Act are able to occupy general sea areas for a period of up to 30 years (Article 10, Paragraph 4 of the Offshore Renewable Energy Usage Act), and the above certified occupation period within port and harbor areas has been set to the same as it is within general sea areas.

Next page Trends in offshore wind-power generation business within general sea areas