Taiwans Bureau of Energy (BoE) and Industrial Development Bureau (IDB) been working on a draft regulation for the third round of offshore wind auctions. This will also include a new target for 2035. Taiwan is on the path to connect 5.5 GW of new offshore wind capacity by 2025 and more capacity will be tendered by the government through the Round 3 auctions for commissioning by 2035.
By 2035, the investment from offshore wind is expected to reach $90 billion USD and create around 57,000 jobs. Instead of the previous agenda of adding 1 GW each year between 2026 and 2035, 1.5 GW of offshore wind capacity would now be added each year instead. From 2026 to 2031, Taiwan would add a total of 9 GW of offshore wind and further 6 GW from 2032 to 2035.
For offshore wind farms with commercial operation dates in 2026-2027, auctions will be held in 2022, with the first bidding round planned for June 2022. For offshore wind farms that would start operating in 2028-2029, bidding will be launched in 2023. Further, for projects that would enter operation in 2030-2031 an auction would be held the following year. Bidding timelines for offshore wind farms to begin in 2032 to 2035 would be decided later.
According to the Taiwanese authorities, a project can only be awarded 500 MW per year, plus additional 100 MW of capacity. The proposed criteria for selection of bids in the first stage include technical aspects, financing, and plan for the supply chain, while the second stage refers to the bid price. In order to qualify for the auction, projects must have site agreements, environmental impact assessment and grid feasibility.
Taiwan has fast emerged as a key offshore wind market in the region. The country has achieved a lot in the offshore wind sector in a very short span of time. Until three years ago, there was no offshore wind industry in the country. Now it is well on its way to have close to 2,500 MW in construction phase. The first few 100 MWs are already operating.