Floating Offshore Wind Demonstration Program Unveiled; Energy Administration to Announce Bid Winners as Early as Q3 Next Year

The Energy Administration, MOEA, today (8th) released a draft floating offshore wind demonstration program, planning to select 2 suitable demonstration wind farms, with the flexibility to add a 3rd project depending on circumstances.

Each project will comprise 6 to 12 floating platforms, with a capacity of approximately 100 to 200 MW. Eligible projects must adopt a "floating subsea foundation" design, pass the environmental impact assessment (EIA) review conducted by the Ministry of Environment (MOENV), and obtain a registration letter issued by the Energy Administration. The program aims to introduce floating offshore wind technology and extend wind energy development into more distant waters, supporting Taiwan's target of achieving 40 to 55 GW of installed offshore wind capacity by 2050.

The project auction will assess applicants across 3 major categories: technical, financial, and sustainability capabilities, with a minimum total score of 70 points required.
"Technical capability" accounts for 45 points, including 10 points for engineering execution capability, 20 points for the completeness of development and technical planning, and 15 points for the reasonableness of the development schedule.

"Financial capability" accounts for 40 points, including 15 points for the net worth or fund size of the main developer's top-level shareholder and 25 points for financial soundness.

"Sustainability capability" accounts for 15 points, including 5 points for environmental friendliness and shared benefits, and 10 points for local cooperation and talent development. In the event of a tie, projects will be ranked according to their technical and financial scores, in that order. Where project sites overlap, the higher-scoring project will be given priority.

Energy Administration Deputy Director-General Chung-Hsien Chen said that semi-submersible platforms are currently the predominant technology internationally, but it remains unclear which technology is most suitable for Taiwan. The Energy Administration will therefore adopt a relatively open approach. If the 2 selected projects use different floating platform technologies, both would be considered acceptable, and a third project could also be added depending on circumstances.

Chen said the timeline outlined in the draft was initially designed to be relatively conservative. If the selection mechanism is successfully announced by the end of this year, applications could close as early as the second quarter of next year, with the selection results announced in the third quarter. He added that more than 6 projects have already passed relevant EIA planning procedures and is not concerned about a lack of industry interest in participating in the bidding process.

The Energy Administration plans to open applications within six months after announcing the selection mechanism. The feed-in tariff is expected to be provided by the end of this year and will serve as the incentive mechanism. In principle, demonstration wind farms must be completed and connected to the grid by the end of 2032. However, projects may be granted an extension until the following year if developers complete the installation of all floating platforms or achieve grid connection for at least half of the project by the end of 2032.

Source: MOEA｜Economic Daily News
Compilation & Ttranslation: EnergyOMNI