2019-06-26

Offshore Wind: Driving New Opportunities for Local Industries

After 76 consultation meetings with industry members, IDB has set targets and a developmental framework for Taiwan’s offshore wind industry. Its programs have attracted businesses including Chin Fong/CS Wind (Tower), Yeong Guan Energy Technology (Hub casting), Tien Li Offshore Wind Technology (Blade), and Tai-Shing-Century (Transition piece) to set up factories in the Industrial Zone (II) at Taichung Port. Along with Century Wind Power’s production at Taipei Port and Sing Da Marine Structure’s (SDMS) facility at Sing Da Harbor in Kaohsiung, offshore wind investment is estimated to reach eight billion New Taiwan Dollars this year (2019). On January 18th, 2018, IDB promulgated Offshore Wind Power Industry Policy, as well as Project Framework for Offshore Wind Power Industrial Relevance Implementation Program, announcing items critical for Taiwan’s offshore wind development (turbine production, foundation and marine engineering vessel production), and a development timeline consisting of a preparation phase, the 1st and 2nd phase. Developers are required to submit industrial relevance implementation programs and supporting materials, which will be reviewed by IDB before an opinion letter is issued. The process aims to enhance collaboration between international and local suppliers, and assist suppliers in building relevant supply chains. Tower and foundation of offshore wind turbines are key items for the preparation phase. Under IDB’s assistance, the Metal Industries Research & Development Centre and ENCONAcademy have facilitated collaboration between DVS/SLV and Taiwan Welding Society for a joint welding certification program. Eleven representatives from businesses including SDMS, Tai-Shing Engineering and Construction, and WANCHI Steel have successfully obtained certification, and an award ceremony was held on June 13th, 2019. Committed to promoting collaboration between offshore wind developers and local suppliers, MOEA will continue to encourage local key industry players to lead efforts and connect local SMEs, in order to facilitate technical upgrades for local businesses and work together to gain a foothold in the global supply chain system. Contacts Contact Organization: Metal and Mechanical Industrial Division, Industrial Development Bureau, Ministry of Economic Affairs Contact Person: Mr. Chen Contact Phone: (02)2754-1255 ext.2141

2018-08-16

Port of Taichung to Announce Public Bid on Land in the Domestic Offshore Wind Industry District of Industrial Zone (II)

As part of ongoing efforts to support government green energy goals and to stimulate the development of a national wind-energy sector, the Port of Taichung, TIPC has dedicated 111ha. of land in Industrial Zone (II) as a future base for the country’s nascent domestic offshore wind industry. Business recruitment efforts are slated to begin soon, with the list of priority target companies including suppliers of wind-turbine generators, rotors, towers, marine cables, and cast turbine components. Following the Bureau of Energy (BOE)’s announcement on the selection and bidding results for offshore wind farms, the Port of Taichung, in support of the government’s promotion of offshore wind farm development, will announce a formal bid in late August for the rights to invest in and conduct business on approximately 21ha. of land in the port’s Industrial Zone (II). This section of land has been earmarked for production, storage, and other activities related to wind-turbine rotors. Interested investors from any industry that meet the requirements are encouraged to submit a bid. The Port of Taichung notes that the Yeong Guan Group currently has 20ha. of land (leased in 2015) in the zone and is now building facilities to manufacture wind-turbine components. Once up and running, Yeong Guan’s operations in Taichung Port are expected to create over 700 new jobs. After successfully closing the upcoming bid, the port will announce further bids to attract manufacturers and suppliers of wind-power equipment such as generators, rotors, towers, and marine cables. The over 70ha. of remaining land in the park will be planned, parceled and bid out to other qualified firms in expectation of creating a competitive industrial cluster that will not only bring new jobs to the port but also advance both BOE’s offshore power generation strategy and plans to localize the production of key components and parts in Taiwan.

2018-07-05

Government to smooth way for timely wind power development

Premier Lai Ching-te at Thursday’s Cabinet meeting called on relevant ministries and agencies to simplify administrative processes and remove hurdles to permit acquisition and development of offshore wind power, in order to achieve a nuclear-free homeland by 2025 and increase the use of renewable energy as called for by the nation’s energy policy. Agencies were also instructed to take the initiative in assisting developers with procedures necessary for planning and construction, so that facilities and infrastructure can be completed on time. In addition to his instructions to assist developers, Premier Lai also directed the Ministry of Economic Affairs (MOEA) to maintain firm oversight of related projects, such as the timing of electric grid work and port construction, in order to provide adequate infrastructure to support offshore construction and ensure that the transmission network will be able to handle the added capacity. The premier’s remarks came following a presentation by the MOEA detailing Taiwan’s promotion of offshore wind power. The MOEA indicated that Taiwan’s overall strategy for promoting wind power incorporates demonstration projects, award incentives, the opening of promising sites, and development in blocks. Plans call for the completion of two demonstration facilities and the opening of 36 promising sites for developers to consider by 2020. Once companies have completed environmental impact assessments and obtained the necessary permits, construction can begin that will add 5.5 gigawatts in offshore wind power capacity by 2025. MOEA estimates put the total investment required through 2025 at NT$962.5 billion (US$31.56 billion). The project will create around 20,000 jobs, reduce carbon emissions by 10.47 million metric tons, and upon completion be able to generate 19.8 billion kilowatt-hours of clean electricity per year, enabling the realization of Taiwan’s policies of developing green energy, building an innovative green economy, and promoting a sustainable environment.

2018-07-04

Seven companies awarded with grid capacity to commission 10 offshore wind farms, 738 MW by 2020 and 3,098 MW between 2021 and 2025

The selection result of "Offshore Wind Potential Zones Installed Capacity Allocation" is officially announced. Ministry of Economic Affairs (MOEA) held a press conference of "Offshore Wind Potential Zones Installed Capacity Allocation Scheme" on April 30th, 2018 to reveal the results of capacity allocation. 7 developers have been awarded with grid capacity to commission 10 offshore wind farms. Geographically, Changhua exceeds others with 2,400 MW (62.6 %), followed by Yunlin with 708 MW (18.4 %), Miaoli with 378 MW (9.9 %) and Taoyuan with 350 MW (9.1 %). MOEA held the review meetings of "Offshore Wind Potential Zones Installed Capacity Allocation Scheme Selection Procedure" on 20th, 27th and 28th April to evaluate the projects applied for commissioning in the year of 2020 and year between 2021 and 2025. According to the "Directions for Allocating Installed Capacity of Offshore Wind Potential Zones" (hereinafter referred to as "Direction") announced by MOEA in January 2018, 0.5 GW will be allocated for the year 2020, and 3 GW for year 2021 to 2025. All projects will be reviewed and prioritized according to their technical and financial capabilities. In addition, for those who apply for 2020, their administrative progress of the Preparation Permit must also be reviewed. MOEA stated that each of developers not only presents their performance based on the criteria of technical and financial capabilities, but also demonstrates their commitments and determinations to realize the localization of the offshore wind industry and local development, so as to participate in domestic offshore wind power construction projects. MOEA mentioned that there are 3 projects competing for "Selection Procedure for projects commissioning in 2020", and 17 projects for "Selection Procedure for projects commissioning in 2021-2025". After 3 days of evaluation on 20th, 27th and 28th April, all projects are prioritized according to their scores and allocated grid capacity in accordance with the "Direction". The result has been confirmed that 2 projects are allocated with 738 MW in total, among which 238 MW is extra awarded in consideration of factors, including integrity of wind farms, the effectiveness of development and available capacity of the grid under the "Direction". Similarly, 6 projects are allocated with 3,098 MW, including 98 MW extra awarded capacity. MOEA further explained that the above result is based on the ranking and the availability of grid capacity as announced by Taipower. If any allocated project chooses to give up the granted capacity, the above mentioned allocation capacity will be adjusted accordingly. Moreover, MOEA has included items of "Industrial Related Benefits" in the "Offshore Wind Potential Zones Installed Capacity Allocation Scheme". The awarded projects which will commission in 2021 and 2022 must provide the localization action plan to be reviewed by MOEA by the end of 2018. As for those to be commissioned between 2023 and 2025, the deadline is at the end of 2018. In addition to generate clean electricity, this policy will boost the transformation of both domestic manufacturing and service industries in a steady manner, also to promote the development of local energy supply chain, as well as to create greater output value and more job opportunities, and eventually to thrust overall economic development. Unselected companies can also participate in the Auction in June this year. The bidding results will be announced by the end of June. MOEA actively promotes the development of offshore wind power. The first batch of offshore demonstration turbines have been successfully commissioned, which represent a significant milestone. In Phase 2, or Zone Application of Planning, grid capacity will be allocated by Selection and Auction, in order to reach a balance between renewable energy promotion and national financial burden. In the future, a total of 5.5 GW of offshore wind farms will be installed, which will accumulate investments of NT$962.5 billion in total, creating approximately 20,000 jobs, and the annual carbon reduction is about 10.47 million tons. The amount of CO2 reduction from offshore wind is equivalent to the amount from 26,926 Daan Forest Parks. Overall, the offshore wind development will realize the policy visions of strengthening energy security, innovation for green economy, and promotion for sustainability of environment. Spokesperson for Bureau of Energy, Ministry of Economic Affairs: Deputy Director-General, Chun-Li Lee Phone: 02-2775-7660 Mobile: 0936-250-838 Email: chunlee@moeaboe.gov.tw Business Contact: Director, Chung-Hsien Chen Phone: 02-2775-7770 Mobile: 0910-998-339 Email: ctchen@moeaboe.gov.tw Media Contact: Inspector, Yu-Hsuah Hsia Phone: 02-2775-7705 Mobile: 0910-668-295 Email: yhhsia@moeaboe.gov.tw

2018-04-10

MOEA welcomes Taiwan-U.K. offshore wind power cooperation

Minister of Economic Affairs Jong-Chin Shen and U.K. Minister for Investment at the Department for International Trade Graham Stuart witnessed the signing of a memorandum of understanding on cooperation in the field of offshore wind farm development between the British Office Taipei and the Taiwan Offshore Wind Turbine Foundation and Marine Engineering Association (T-Wind Marine Association) at the Taipei Fullerton Hotel on April 9, 2018. Earlier the same day, Minister Shen and Minister Stuart engaged in dialogue at the Ministry of Economic Affairs, exchanging views on bilateral offshore wind power cooperation. During the dialogue, Minister Shen noted that the MOEA has set the goal of 5.5 GW of offshore wind power total installed capacity in Taiwan by the year 2025. He expressed the hope of strengthening cooperation with the U.K. on offshore wind turbines and maritime engineering in order to upgrade Taiwan's offshore wind power technology and to promote industrial supply chain localization. Minister Stewart stated that the U.K. is willing to share offshore wind power expertise and industry development experience with Taiwan, adding that areas of potential cooperation include initial development, design, engineering, installation support, operations and maintenance. The U.K. is a global leader in offshore wind power generation, with total installed capacity expected to reach 7.5 GW this year. As of the end of 2017, renewable energy total installed capacity in the U.K. amounted to 40.5 GW, an increase of 13.3% over the previous year. A total of 39.7% of the country's electricity is currently generated by natural gas, 29.4% by renewable energies, 20.9% by nuclear energy and 10% by kerosene. Taiwan has launched an energy transition initiative, with the set targets for 2025 being 50% of electricity generated by natural gas, 30% by coal, and 20% by renewable energy, with a focus on solar and wind power for the latter.