Taiwan

Taiwan

Taiwan selects 3.8GW of projects

TAIWAN: The Ministry of Economic Affairs (MOEA) has allocated grid capacity for ten offshore wind projects, with developers Ørsted and Wpd among the successful applicants.

Taiwan currently has just the one offshore project, the two-turbine Formosa pilot project (pic: Swancor)
Taiwan currently has just the one offshore project, the two-turbine Formosa pilot project (pic: Swancor)

Seven developers were selected to build the projects, which have a combined capacity of 3,836MW, the ministry stated.

The majority of the projects — 2.4GW (62.6% of the selected capacity) — will be built off the coast of Changhua county in the west of the country.

Sites were also selected off the coasts of Taoyuan (350MW) and Miaoli (378MW) counties to the north of Changhua, as well as off of Yunlin (708MW) to the south.

Two projects will be connected or partly connected in 2020: Swancor and Macqaurie’s 378MW Formosa 2 project, and 360MW of wpd’s 708MW Yun Neng wind farm. The 348MW remainder will be connected between 2021 and 2025.

The German developer was also allocated 350MW for its 363MW Li Wei site, which will be connected between 2021 and 2025.

Ørsted was also among the successful developers, being awarded capacity for two projects to be connected to the grid in 2021 with a combined capacity of 900MW – the 605.2MW Changhua 1 and the 294.8MW Changhua 2.

Copenhagen Infrastructure Partners also received capacity for three of its projects. Its 552MW Zhang Fang wind farm will be connected between 2021 and 2023, 48MW of its 480MW Westland site will be connected by 2024, and 300MW of its 480MW Zhong Neng project – which it owns with China Steel Corporation – will be connected in 2024.

State-run energy company Taipower’s 300MW eponymous project off the coast of Changhua was also chosen as part of the ministry’s selections. It will be connected in 2024.

Northland Power and Yushan Energy, meanwhile, were allocated 300MW for their Hai Long 2 wind farm off the coast of Changhua county. The joint venture is developing two sites – both called Hai Long – that will have a combined capacity of 1.2GW. It plans to commission Hai Long 2 by 2024.

Alex Wong, partner at Hogan Lovells, said the law firm expected some of the applicants from this selection process to apply for additional capacity during the auction process later this year.

Earlier this month, the MOEA announced plans to auction a further 2GW as part of efforts to meet the Taiwanese government’s target of having 5.5GW offshore wind by 2025. 

The allocation announcement was likely to "set off a flurry of activities among developers, contractors, financiers and consultants" in Taiwan, as well as in other markets in Asia, the Asia Wind Energy Association stated.

Meanwhile, Joseph Kim, partner at Hogan Lovells, added: "As sponsors can now start developing their projects in Taiwan, they will have a closer look at markets such as Japan and South Korea.

"Lessons learned from developing in Taiwan will be valuable when going into those markets."

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