Taiwan's offshore wind sector grew rapidly in the early 2020s, bringing it second only to China in terms of installed offshore wind capacity in Asia. In line with global trends, almost all existing projects in Taiwan have used bottom-fixed technology, with floating wind yet to emerge.
Many international developers are active in Taiwan, including Orsted, Corio Generation, TotalEnergies, and EDF. The country has nearly 400 turbines, with 4.4 GW of capacity, either operational or under construction. Steady future growth is ensured with an additional 5.8 GW in the contracting and permitting phases.
Looking further, Taiwan plans to award 40 GW worth of projects within the next decade. The government has set ambitious but linear targets: 5.7 GW by 2025 and 15.5 GW by 2035 (set every two years). Yet targets are on track and will likely be met if the current dynamics keep up.
Here, we examine the factors behind offshore wind's success in Taiwan, some key regional considerations for this market, and the near-term outlook.
A centralised approach to zone allocation
Taiwan has adopted a centralised approach to allocating government-designated zones in order to achieve its targets. The multi-stage consenting process involves environmental assessments and permits.
First, developers propose projects that often significantly overlap each other. Then, the selection process includes a qualification review, focusing on technical, financial, and industrial criteria. Projects are ranked through a price comparison, with priority given to the lowest bidder. First-stage results are ranked by developer: in the latest round, Round 3.2, six developers were selected.
After that, overlaps are solved, and Taiwan's Bureau of Energy (BOE) allocates the final capacity, with a limit of 0.5 GW per wind farm or developer. This limit may increase based on project factors such as grid capacity and the domesticity of the project supply chain.
Potential shifting stance for local content requirements
When Taiwan took its first steps into offshore wind, the government implemented strict local content rules. To kickstart the industry and develop a domestic supply chain, at least 60% local supply was mandated, alongside generous Feed-in Tariffs (FiTs).
However, as FiTs have been reduced over time but local content requirements remain, offshore wind projects in Taiwan have become less profitable. This has potentially threatened the country's energy security goals, which raises significant industry concerns.
Still, Minister of Economic Affairs Kuo Jyh-huei has recently signalled a potential relaxation of these local content policies, acknowledging that the protected "greenhouse" approach may no longer be sustainable.
This shift in stance is driven by the need to balance domestic industry development with project viability and the ultimate goal of Taiwan meeting its renewables target. It could also open the market to more international competition in the supply chain.
Equipment vs Geopolitics
Taiwan’s industry faces challenges in vessel and equipment supply. Despite China's geographical proximity and important role in the global offshore wind supply chain, Taiwan cannot rely on Chinese vessels for its projects.
This limitation stems from the complex political relationship between Taiwan and China, which restricts direct cooperation in sensitive sectors like energy infrastructure. Therefore, Taiwan seeks to avoid reliance on China.
The geopolitical situation has forced Taiwanese developers to look elsewhere for equipment and vessels, often resulting in higher costs and logistical complexities. European and South Korean suppliers have stepped in to fill this gap, but the increased distances impact project economics. This is also a factor for the existing stringent local content policies.
Building the local supply chain
In response to these difficulties, Taiwan has made significant progress in developing its local wind component manufacturing and shipbuilding industry. A key example is the construction of the Green Jade, a Taiwan-built offshore installation vessel. In 2024 and 2021, Manufacturers Siemens Gamesa and Vestas opened facilities in Taichung for wind turbine parts (nacelles and blades, respectively).
Still, the local content policy has come under fire not only from developers but also from the EU. The EU argues that Taiwan's local content requirements for offshore wind projects violate the World Trade Organization’s rules by discriminating against imported goods and services.
While supporting green energy efforts, the EU contends that these requirements create an unfair advantage for Taiwanese companies, hindering competition and potentially increasing costs for renewable energy development—a concern echoed by Taiwanese developers.
Tackling the challenges posed by typhoons
Aside from policymaking, a major challenge to the domestic offshore wind market is typhoons. Taiwan is hit by an annual average of three to four typhoons of various intensities. Typhoon risks require planning adjustments. Operating within limited weather windows to avoid risks increases pressure on project schedules, leading to weather-related downtime when installation vessels remain in port.
A turbine installation analysis of recent projects in Taiwan and Europe shows that waiting on weather in Taiwan was 152% longer, with 2.1 days of downtime per turbine compared to 0.8 in Europe. This indicates that WTIVs (Wind Turbine Installation Vessels) spend considerably more time waiting in ports.
Typhoons can disrupt grid stability, as strong winds may cause turbines to generate power at peak capacity before shutting down when wind speeds exceed safe limits. However, the Taiwan Offshore Wind Industry Association clarified that while winds may be strong along the coast, the central and northern regions, where most turbines are located, often experience calm conditions during typhoons. This makes these storms more of a challenge than a benefit, preventing vessels from working safely while not sustaining greater generation.
In more exposed locations, an opportunity could be found in floating wind. Floating wind technology, exemplified by France's Floatgen project, shows promise in mitigating the impact of typhoons on offshore wind generation. Floatgen, a 2 MW floating wind turbine developed by BW Ideol, has a hydrodynamic design that allows it to perform reliably in rough seas. It has proven its resilience by maintaining a high availability rate of over 92% from 2021 to 2024, despite enduring extreme weather conditions in major storms. In October 2024, Taiwanese developer Taiya Renewable Energy partnered with BW Ideol, with potential floating projects to come to Taiwan in the future.
The future outlook for offshore wind in Taiwan
A more flexible approach to local content requirements could help strike a balance between nurturing the domestic industry and ensuring project viability. By allowing developers more freedom to source components and vessels internationally, Taiwan could potentially reduce project costs while still maintaining a degree of local participation.
However, any policy changes must be considered carefully to avoid disrupting existing progress in developing local capabilities. This may involve gradually relaxing requirements or a more targeted approach focusing on specific components where local manufacturing is most competitive.
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