Penghu - TGC Offshore Wind Farm

25 Aug 2016: TAIWAN OFFSHORE WIND STRATEGY UPDATE Analysis by Taiwan's Industrial Technology Research Institute (ITRI) estimates 1.2GW of wind is feasible in waters shallower than 20m, with a further 5GW in depths of 20m-50m. Supervised by the Bureau of Energy, Taiwan's Thousand Wind Turbine programme is a 3-phased approach to realising this potential via; 1. A short-term target of 4 demonstration offshore wind turbines by 2016 2. A mid-term target of 520MW by 2020 achieved through three demonstration wind farms 3. A long-term target of 3000MW by 2025 achieved through zonal development In this nascent market, supply constraints are likely to be a challenge to delivering the required compound annual growth rate of installations of around 100%. Additionally, typical project development times of 6-9 years means some capacity will likely be delivered later. The 2009 Renewable Energy Development act supports annually reviewed feed-in tariffs available as either NT$5.7405(€15.6c)/kWh for 20 years or NT$7.1085(€19.3c)/kWh for the first 10 years followed by NT$3.4586(€9.4c)/kWh for the next 10 years. 36 "Zones of Potential" off the shallower (<50m), resource endowed west coast were identified in July 2015 and are currently being investigated by applicants with the aim of obtaining EIA approval during 2017 for projects in excess of 100MW per zone. A Strategic Environmental Assessment (SEA) has been completed and approved by the Environmental Protection Administration (EPA) in July 2016. The SEA, which will be used to identify sites for commercial scale wind farms, recognises the need to protect the critically-endangered white dolphin found in the shallow waters of the west coast. The capacity of the zones will be adjusted in accordance with the SEA findings. From 2017 zones will be announced for development, with up to 500-2000MW released every three years and awarded based on qualitative criteria including paid-in capital and financial conditions; consortium composition and capabilities; schedule of development and domestic supply chain benefits. Strong fundamental forces are driving Taiwan's ambitions. Nuclear power is being phased out and high forest and mountain coverage is constraining onshore wind growth. High wind speeds, manageable distances to shore and water depth, plus strong political support with solid legal and financial institutions provide attractive conditions for investment.
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