Taiwan’s Ministry of Economic Affairs has announced plans to auction 5 GW of offshore wind across three phases by 2023. It aims to hold a 1 GW auction in 2021 followed by a 2 GW auction in 2022 and another 2 GW auction in 2023. The projects selected in the three auction rounds are expected to be commissioned between 2026 and 2030.
The auctions will be held using a two-stage selection process. The first stage is qualification review, which is based on technical, financial capabilities, industrial commitment and other conditions; the second stage is to pass the review criteria. Developers with the lowest price will be announced the winner.
Taiwan holds strong potential for renewable energies, with its positive government outlook. After deciding to phase out nuclear power by 2025 – with nuclear energy accounting for some 40% of power generation in the past – the Taiwanese government aims to make up for the resulting shortfall by expanding renewable energies, especially offshore wind power. Overall, the government expects to have 15.5 GW of offshore wind projects in operations by 2035 with 10 GW being installed between 2026 and 2035.
In the country’s first two offshore wind auctions held in April and June 2018, Taiwan selected projects with a combined capacity of 5.5 GW which are scheduled to be completed by 2025. Two projects are currently in operation off the Taiwanese coast, Formosa 1 Phase 1 and Formosa 1 Phase 2 representing a combined capacity of 128 MW of installed capacity. Construction works are heating up on a number of projects with over 3.4 GW past the consent phase. A number of European developers are behind the projects supporting supply chain development for future projects.
REGlobal’s Views: Although China is home to the biggest offshore market in Asia, the market is almost impenetrable for international offshore developers, with only rare cases existing for offshore developers to collaborate with their Chinese partners. Taiwan, on the other hand, remains very much open for international business. Its commitment to open markets has attracted various active international offshore developers in Taiwan, with many having set up Asia headquarters in Taipei. Driven by the government’s effective policies, creating certainty and stability for the offshore industry, Taiwan is fast emerging as a potential supply and expertise hub for the budding Asia offshore wind market.