Taiwan looks set to split its next wave of offshore wind auctions with 1GW to be procured in 2021 under latest proposals from the island’s energy regulator, which aims to nail down the final shape of its third-stage development plans by the end of this year.

Taiwan’s Ministry of Economic Affairs (MOEA) has unveiled its latest thinking over awarding 5GW offshore wind projects in three separate auctions for construction between 2026-2030, an approach different from the industry's previous expectations that sparked concerns over scale.

The first auction would take place in the second quarter of next year for a total 1GW of projects, with shallow-water sites of less than 50 metres depth will be prioritised, according to an official statement from the ministry.

The following two rounds are scheduled for 2022 and 2023, each to select 2GW of projects.

Winners in the first auction would need to complete construction by the end of 2026, while the grid-connection deadline for the latter two rounds would be 2027-28 and 2029-30, respectively, the regulator said.

Taiwan’s government last year committed to developing an extra 10GW offshore wind capacity between 2026 and 2035, adding to 5.5GW already allocated, as Recharge previously reported. The 5GW projects due to follow after 2030 are not yet the subject of any allocation plans.

The regulator recently invited more 40 companies, including international developers, to attend a meeting to brief them on current thinking over the allocation measures.

The developers were told the proposal was not the final verdict, as the regulator said that it would continue inviting feedback and hope to reach consensus with the industry before drawing up the final legal basis for the third-stage development by the end of the year.

At the meeting, the regulator also revealed intention to carry out the future allocations in a two-step approach, by first shortlisting projects based on technology, financial capability, and localisation commitments of the developers.

The selected projects would then participate in price-based auctions, Recharge understands.

The regulators are also considering development caps for allocating the 5GW. Each project would secure, at best, 500MW in each auction, and each developer could only obtain no more than 2GW, MOEA's officials revealed in the meeting.

Disagreements Remain

MOEA's plan for gradual capacity release will disappoint some developers if it is finalised.

International developers point out that a 1GW allocation next year is too small to support the economy of scale critical for local-content plans.

However, the policymaker intends to spur competition among some 5.57GW projects that have previously passed environmental assessments but failed to secure a slot in the previous two rounds of development, Chen Chung-hsien energy technology director of Bureau of Energy (BOE) explained in the meeting.

These projects are likely to be prioritised in next year's auction, in which at least two developers would achieve the go-ahead given the 500MW cap.

Several developers voiced concerns over localisation measures suggested by the Industry Development Bureau (IDB) of the MOEA, which would require contracts with local suppliers

But despite the concerns, international developers remain keen on taking part in the upcoming allocations.

Of the 5.57GW eyeing the next auction, most are led by international players, including the 2GW Haiding project by EnBW, JERA, and Macquarie, the 570MW Changhua Northeast of Orsted, the 600MW No.28 project owned by Wpd and LeaLea, as well as the 448MW Chufeng jointly developed by Innogy and Asia Cement Corp, Recharge understands.

Wind

Taiwan set to auction 1GW next year under latest offshore wind plan