Thursday 8 August 2024

Taiwan’s offshore wind experiences turbulence

Strict regulatory framework and supply chain disruptions cause delays to Taiwan's ambitious offshore wind targets.

Taiwan's access to an offshore wind supply chain is limited.

According to DigiTimes Asia, the Taiwanese government has been trying to localise the offshore wind industry.

However, localisation requirements are complicated and costly.

Project Finance International reports that despite attempts at localisation, supply chains continue to be a deterrent to developers and a global shortage of ships adds to this issue.

In accordance with local legislation, offshore wind developers are required to obtain the Environmental Protection Agency’s (EPA) approval.

However, this is challenging since the EPA aims to prevent and mitigate any ecological damage to the Taiwan Strait, an already congested area.

Offshore wind projects awarded in 2018 have so far been moving slowly and with continuous disruptions, increasing development costs.

Despite these issues, Taiwan has a strong offshore wind presence in Asia.

According to the Global Wind Report 2024, Taiwan has an installed capacity target of 5.7GW by 2025 and a further 15GW by 2035.

Taiwan's Ministry of Economic Affairs (MOEA) has recently allocated 2.7GW of capacity to five offshore wind projects.