TOKYO—Mitsubishi Corp. has announced its complete withdrawal from all of its domestic offshore wind power projects, citing a lack of profitability. The move is a significant setback for Japan's ambitious renewable energy goals.

The company's decision affects three major project sites—one near Tokyo in Chiba prefecture and two in the northern Akita prefecture—for which Mitsubishi and its partner, Chubu Electric Power, secured the development rights in a 2021 government auction. The consortium's winning bid was based on a low power sales price, which has since been rendered unsustainable due to a sharp increase in global raw material and labor costs.

Mitsubishi confirmed that its offshore wind business incurred a loss of ¥52.4 billion (approximately $354 million) in the 2024 fiscal year, underscoring the severe financial pressure that led to the pullout. Sources familiar with the matter stated that the cost of wind turbines alone has surged by 50% to 80% since the initial bid, making the projects economically unviable.

This unexpected abandonment will force the Japanese government to re-tender the sites, delaying its plan to boost the share of wind power from approximately 1% to between 4% and 8% of the country’s total electricity production by 2040. The incident highlights the growing financial challenges faced by renewable energy developers as they navigate global supply chain disruptions and inflationary pressures.