APAC: Taiwan selects offshore wind projects with 3.8GW capacity

30 April 2018 - 12:00 am UTC

Taiwan’s government has approved eleven offshore wind projects with 3.8GW combined capacity to qualify for a NTD 5.8 (USD 19.6 cents) per kWh feed-in tariff.

Eighteen projects totaling over 10.1GW of installed capacity from nine developers took part in the selection.

Projects that have not been selected will take part in a competitive tender for 1.7GW capacity in June.

This is less than the 2GW capacity that had been planned for the June tender, as today’s selection saw 0.8GW more capacity selected than the 3GW earlier planned.

The eleven offshore wind farms selected by the Bureau of Energy (BOE) on Monday (30 April) were proposed by seven developers. They are eligible for 20-year power purchase agreements and include:

– Swancor’s Formosa II project, with all of the 378MW capacity it applied for approved to be connected to the grid by 2020;

– WPD’s Yunlin project, with 360MW of the 708MW capacity submitted approved for grid connection by 2020; 

– WPD’s Taoyuan project, with 350MW out of the 363MW capacity approved. To be connected to the grid in 2021;

– WPD’s Yunlin project, with 348MW of the 708MW capacity submitted approved. To be connected to the grid in 2021;

– Ørsted’s Greater Changhua (Southeast) project, with all the 605.2MW capacity applied for approved. To be connected to the grid in 2021;

– Ørsted’s Greater Changhua (Southwest) project, with 294.8MW of the 631.9MW applied for approved. To be connected to the grid in 2021;

– CIP’s 552MW Changfang project. All the capacity applied for was approved, with 100MW to be connected to the grid in 2021 and the remainder in 2023;

– CIP’s Xidao project. 48MW out of 400MW applied for was approved. To be connected to the grid in 2024;

– Northland Power Inc and Yushan’s Hailong II project, with 300MW out of 532MW applied for approved. To be connected to the grid in 2024;

– China Steel Corporation’s Chungneng project. 300MW out of 480MW applied for was approved. To be connected to the grid in 2024;

– State utility Taipower’s eponymous Taipower project, with 300MW out of 720MW submitted approved. To be connected to the grid in 2024. 

WPD got the highest score in the selection for the projects to be connected to the grid after 2020. It has been allocated up to 1.2GW grid capacity. It was followed by Orsted (900MW), CIP (600MW), China Steel (300MW), Taipower (300MW) and Northland Power (300MW). 

The official investment contracts are expected to be signed in 3Q18.

These developers will receive planning and construction permits as “milestones” set by the BOE in the subsequent few years, so that their projects can be launched in time for commercial operation.

“The result is better than expected,” said a spokesperson for WPD. “But there is a long way to go for us because the project development is just at its beginning.”

Projects that were not selected in the April round include: 

– Ørsted’s 561MW Greater Changhua (Northeast) and 587MW Greater Changhua (Northwest) projects; 

– Asia Cement Corporation’s 450MW Chufeng project;

– Taiwan Green Power(TGP)’s 600MW Hai Hsia project;

– Northland Power’s 512NW Hailong III project;

– Swancor and Macquarie’s 2GW Formosa III project. 

Most developers that did not get all of their proposed capacity approved in the April round are expected to participate in the tendering process in June, while a few others will also compete with new projects according to BOE officials.

The developer’s ability to coordinate with different parties and oversee various steps of project development — from design to construction – was a critical consideration in the selection process, according to Chuan-neng Lin, director general with BOE.  

Swancor’s track record of developing the Formosa I project allowed it to gain an upper hand in the selection process for the Formosa II project.

Meanwhile, Taipower’s experience building coal-fired power plants on the island differentiated it from other domestic players. 

“Some local developers have no experience, but they formed good partnerships with experienced foreign peers (and were also favored),”said Lin. 

When it comes to the upcoming tender, Lin observed that Ørsted is likely to have the biggest advantage in bidding. The Danish renewable giant is so far the biggest offshore wind developer on the island with plans to introduce new strategic investors for its projects with 2..4GW combined capacity. 

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