Offshore Wind Power Infrastructure, Consensus-Building and First-Mover Investment Risks
First written in FY2017. 1 of 3 entries say "Restated". Latest entry: FY2022-Q3.
No other company in this theme has enough history to compare yet.
- FY2022-Q3MaterialisedAnnual report
「The equity-method investment loss relating to Akita Yurihonjo Offshore Wind GK includes an equity-method investment loss of ¥3,291 million arising because Akita Yurihonjo Offshore Wind GK, an equity-method affiliate of the company, was not selected by the Ministry of Economy, Trade and Industry and the Ministry of Land, Infrastructure, Transport and Tourism as an operator for the offshore areas off Yurihonjo City, Akita Prefecture (north and south), designated for the promotion of offshore renewable energy power generation facilities.」
An equity-method investment loss of ¥3,291 million was actually incurred for the project off Yurihonjo City after the offshore wind project was not selected in the public solicitation. - FY2018RestatedAnnual report
「Offshore wind development remains at the upfront investment stage, and recovering this upfront investment will take an extended period. Accordingly, the company has recorded development investments as advances to SPCs as assets since before the SPCs were established, based on the execution of agreements with local governments and co-sponsors concerning business development.」
The risks relating to offshore wind infrastructure, consensus-building and recovery of upfront investments are reiterated. - FY2017First statedAnnual report
「Offshore wind development remains at the upfront investment stage, and recovering this upfront investment will take an extended period. As a result, development expenditures are recognized as expenses in the income statement, putting pressure on the Group's current results.」
Risks include developing port facilities, installation vessels and maintenance systems, the time required to build consensus with local communities, and the prolonged recovery period for upfront investments.