Windpower Monthly rating 4/5
Our rating is based on a combination of project pipeline, political and policy support, investor confidence and structural readiness of the country in terms of grid infrastructure, permitting process and local supply chain.
Forecast of installed and operating wind power capacity based on the latest statisitics and measured against the Windpower Intelligence database.
A favourable policy framework increased Taiwan’s reputation as a future offshore wind hub rapidly from 2015. As a result, major developers have opened offices, formed joint ventures, and secured financial backing for a spate of projects.
The government set a target of 5.5GW by 2025, while onshore it is aiming for 1.2GW.
Between April and June 2018 its Ministry of Economic Affairs allocated 5.4GW across 14 sites, with wind farms due to be online from 2021.
There remains uncertainty about projects’ bankability and grid reliability, however, according to commercial lobbying group the European Chamber of Commerce Taiwan.
But it could be the launching pad for the offshore wind industy in the rest of Asia, with Vietnam, South Korea and Japan closely monitoring the market.
There are many good reasons to celebrate the recent strong market development of offshore wind in the Asia-Pacific region (APAC). Most forecasters expect APAC to take the volume lead for annual installed offshore wind capacity from 2025.
US wind turbine maker GE has announced an agreement with the Taiwan Power Company to provide maintenance, repairs and spare parts for 26 turbines of 1.5MW in Taiwan.
WORLDWIDE: Windpower Monthly's new digest reveals recent deals that demonstrate low wind turbine costs and maintenance costs, a high offshore grid connection deal in Germany, rising gas generation costs in Europe and a nuclear strike price related to the length of contract
SOUTH EAST ASIA: Across the south-east Asian markets of Philippines, Taiwan, Thailand and Vietnam, collective installed wind capacity has grown by more than 166MW in the past year, all of it onshore.
TAIWAN: Taiwan's government is on the verge of finalising the terms of a new financial incentive designed to kick-start development of an offshore wind energy sector. In April, the Bureau of Energy within the Ministry of Economic Affairs announced grants to support the construction of two offshore demonstration projects. The bureau indicated that the grant is likely to be in the range of NT$950 million to NT$1.6 billion ($33-56 million), with each project featuring two turbines.
TAIWAN: Siemens Gamesa Renewable Energy (SGRE) has announced ten new memorandums of understanding with companies involved in the Taiwanese supply chain, as the manufacturer prepares for rapid build out.
TAIWAN: Japanese general trading company Mitsui has acquired a 50% stake in the Taiwanese branch of Yushan Energy, thereby also purchasing a 20% stake in the 1GW Hai Long offshore wind projects.
TAIWAN: Foundations specialist EEW has been awarded the monopile supply contract for the 120MW Formosa One phase two project.
TAIWAN: Danish developer Ørsted and Canadian firm Northland Power have both secured further Taiwanese offshore wind capacity totalling 1.6GW for an average bid price of TWD 2,456/MWh ($80.94/MWh).
TAIWAN: A consortium of Macquarie Capital, Swancor Renewable and Ørsted have arranged TWD 18.7 billion ($628 million) in financing for the 120MW Formosa 1 phase two project.