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2021-10-08 08:47
Bureau of Energy, Ministry of Economic Affairs

MOEA Initiates the Offshore Wind Energy Zonal Development Selection Mechanism

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MOEA Initiates the Offshore Wind Energy Zonal Development Selection Mechanism
The MOEA released the "Directions of Grid Capacity Allocation for Offshore Wind Energy Zonal Development" on August 19th this year, officially planning to release a total of 15 GW of capacity from 2026 to 2035, and confirming that the first stage will be implemented in three rounds from 2026 to 2031, where a total of 9 GW will be released for selection. Each round will be carried out in two steps: "capability review" and "bidding process". The three major items, technical capability, financial capability, and industrial relevance plan, will be used to review the contractual ability of developers. Only those who pass the review can participate in the bidding process. Winners will be decided according to the bid price. They will be allocated the capacity of the wind farm, and the year the wind farm will be connected. As for year 2032 to 2035, the stage 1 selection results and international technological development, etc. will be referenced for the planning of the details of the selection process of 6 GW capacity in stage 2.

According to the MOEA, offshore wind developers should first obtain site planning documentation in accordance with the MOEA's "Directions of Application for Offshore Wind Zonal Development" released on July 23rd , 2021, and obtain approval at the EIA Task Force's preliminary review and TPC's grid connection review before participating in the Zonal Development selection process. In addition, the capacity allocation for a single wind farm and the same developer is capped at 500 MW. The MOEA may increase the capacity allocation by 100 MW, taking into account of the integrity of the wind farm, development efficiency, the capacity of the domestic industry, and the announced integration capacity of the grid transmission and distribution.

The MOEA also added that the original draft was to use the average cost of fossil fuel generation (cost avoidance) of TPC from the previous year as the upper limit of the bidding price, but after taking into consideration the cost of green energy and the maturity of the private green power trading market, the bidding price for the offshore wind farms selected in zones of potential phase and scheduled to be commissioned in 2025 has been adjusted, where the capacity-weighted average of their bidding prices: NT$2.49/kWh has been set as the upper limit of the tender price for stage 1 zonal development (lower than the current average tariff) and NT$0/kWh as the lower limit. For subsequent rounds, the capacity-weighted average of all bids received in the previous round will be used as the price ceiling and the lower limit will remain at NT$0/kWh.

The MOEA officially announced the Phase 3 Offshore Wind Zonal Development Selection Process in Taiwan, which builds on the past achievements and refines the long-term development plan for the next 10 years to effectively support domestic green power demand and the sustainable growth of the local industry supply chain. In the future, the MOEA will adhere to the established energy transition policy and fully promote offshore wind power, so as to gradually and steadily realize the vision of environmental sustainability in Taiwan.

Spokesperson for Bureau of Energy, Ministry of Economic Affairs: Deputy Director-General, Chun-Li Lee
Phone: 02-2775-7702
Mobile: 0936-250-838
Email: chunlee@moea.gov.tw

Business Contact: Director, Chung-Hsien Chen
Phone: 02-2775-7770
Mobile: 0919-998-339
Email: ctchen2@moea.gov.tw