Launching a floating offshore wind demonstration program will solidify Taiwan's pioneering position in the APAC region's energy transition. Carlos Martín Rivals, CEO of BlueFloat Energy, has called for urgent action to realize floating offshore wind projects in Taiwan. He stressed the importance of announcing a feed-in tariff (FIT) by Q3 2024 to derisk developer activities.
Martín Rivals emphasized that bankability is a pivotal driver for the floating wind market's consolidation. Meeting the stringent requirements of lenders, export credit agencies, technical advisors, and insurers will naturally filter viable floater concepts and suppliers. "Developer and bankability criteria will inherently filter the floater universe," he stated, underscoring the necessity for technologies that can meet these rigorous standards.
He highlighted several decisive factors for floating wind projects. Firstly, offering viable economics through a well-structured FIT is crucial to incentivize developers to invest in the first floating wind projects. A FIT will de-risk the regulatory framework and establish a supply chain aligned with the latest international best practices.
Martín Rivals also stressed the importance of port readiness, noting that port upgrades need substantial support from government funding. Leveraging existing floating experiences can enhance local port infrastructure, with different requirements for demonstration versus commercial projects.
Timing is critical for Taiwan's success in floating wind energy. Announcing plans by Q3 2024, securing the weather window in 2025, and achieving Commercial Operation Date (COD) by 2030 are essential milestones to support Taiwan's net-zero goal. Timely action is vital to avoid missing crucial project windows.
Drawing lessons from international markets, Martín Rivals emphasized the importance of pre-commercial projects. These projects are vital for accelerating cost reduction in subsequent commercial phases. Successful implementations in Portugal, France, and the UK have demonstrated the effectiveness of combining grants, subsidies, and FITs to kickstart the industry.
Addressing the critical role of ports, Martín Rivals noted that international markets often struggle with port readiness. He highlighted the need for government funding to upgrade port infrastructure, emphasizing that requirements for pre-commercial projects may differ from commercial ones. "It's important that we leverage experience from existing floating projects, as they are very different from fixed-bottom wind," he stated.
Looking to the future, Martín Rivals recommended immediate actions to ensure timely project development, stressing the importance of not delaying due to port infrastructure. He suggested implementing alternative mitigation measures to keep activities on track. Defining how the commercial phase of floating wind will look is also crucial. Announcing a FIT by Q3 2024 will allow bid submissions by Q1 2025, ensuring developers can utilize the 2025 weather window for site investigations and achieve COD by 2030.
Finally, Martín Rivals highlighted that offshore wind, particularly floating wind, can drive substantial job creation. This will stem from the vast amounts of affordable renewable power attracting new industries, such as data centers and ship manufacturing facilities.
