North Hokkaido Wind Energy Transmission is responsible for maintaining the grid in northern Hokkaido, including Wakkanai, the northern-most city in Japan.
If successful, the project could boost grid capacity from 300MW to 600MW, a project participant told Kensin, a Hokkaido-based construction newspaper.
Full-scale works on creating 265 grid towers of between 40m and 60m in height could begin as early as autumn 2018, with a targeted completion of 2021.
The cost is estimated at JPY50 billion ($457 million), with a subsidy for 50% of the cost paid by the Ministry of Economy, Trade and Industry.
The project is a feasibility study, with the possibility of a second round of tests that could boost total capacity in the area to 800MW.