The Ministry of Economic Affairs (MOEA) in Taiwan has concluded the Round 3.2 of its offshore wind power development auction, awarding six wind farms development rights with all bids coming in at NT$0 per kWh. This pricing structure necessitates that the projects secure Corporate Power Purchase Agreements (CPPA) to proceed.
The ministry's final rankings, determined by localization criteria, saw Shinfox's YouDe, SRE's Formosa 6, and Orsted's Greater Changhua North-East offshore wind farm taking the top three spots, respectively. CIP's Fengmiao II, Corio's Haiding 1 (Formosa 3), and Enervest's DeShuai wind farm rounded out the fourth to sixth positions.
The Energy Administration specified the capacity allocations, with the first-place project receiving a development capacity of 900MW plus a flexible 100MW, totaling 1,000MW. The second-ranked project is allotted 700MW with an additional 100MW flexible capacity, making 800MW in total. The third place secures 500MW plus 100MW flexible capacity, reaching 600MW. Projects ranked fourth to sixth each receive 500MW.
However, with overlapping project areas, the ministry plans to finalize marine region maps before formally notifying developers of their capacity allocations. The feasibility of achieving the 3GW target remains under review. Developers, upon confirmation, must finalize preparations and sign contracts within three months, aiming for a November signing. The current offshore wind power plan targets grid connection between 2028 and 2030.
However, Orsted is still on the award list, the final word on that might not be spoken until August or later in November. Six projects were awarded but there might be only 5 projects in the end due to overlapping areas.
Taiwan's ambitious goal to achieve 13.1GW in offshore wind power installation by 2030 appears increasingly challenging. Orsted's Greater Changhua North-East wind farm ranked third, faces uncertainty due to substantial overlap with the second-placed SRE Formosa 6 wind farm. Nonetheless, Orsted remains on the award list, with final decisions expected by August or November. Despite six projects being awarded, overlapping areas may reduce the number of projects to five.
Orsted, currently operating and constructing nearly 2GW of offshore wind farms in Taiwan, had a dramatic return to Round 3.2 after abstaining from Round 3.1, only to face a setback.
Per Mejnert Kristensen, President of Orsted Asia-Pacific, expressed regret over not securing a spot in the Round 3.2 auction. He emphasized Orsted's commitment to Taiwan, highlighting the company's collaboration with local suppliers and corporate clients in submitting highly feasible technical and financial bid documents. Kristensen reiterated that Taiwan remains a crucial market for Orsted, with plans to continue developing, constructing, owning, and operating offshore wind farms in the region for decades to come.
