MOEA Minister J.W. Kuo Calls for Relaxation of Offshore Wind Localization Requirements　Emphasizes Geothermal and Hydrogen Energy Development, and AI Engineer Training

(Source: iStock_Credit_WANAN YOSSINGKUM)

In a recent local media interview, Minister J.W Guo of MOEA discussed Taiwan's energy development plans. Amid the country's entry into the Phase 3-2 (the zonal development) of offshore wind farm development, the inflationary impact triggered by the Russia-Ukraine conflict has intensified construction costs, prompting developers to urge the government to review localization policies. Originally, Phase 3-1 required a 60% localization ratio, but Phase 3-2 has allowed developers greater flexibility by adopting a fully elective approach, albeit still seen as insufficiently flexible by developers.

Taiwan is actively transitioning towards green energy development, with the Ministry of Economic Affairs (MOEA) strongly supporting the offshore wind power industry through a guaranteed purchase mechanism to attract foreign investment for wind farm installations. However, as feed-in tariffs phase out and global inflation rises, the costs of critical components for offshore wind power have surged, placing pressure on foreign firms due to localization policies.

Guo stated in the interview, "We've protected [localization policies] for a while. After thorough analysis, we will move towards a more open approach."

Officials from the MOEA described the original intent of the localization policy as driving both offshore wind power development and domestic industrial transformation, aiming for localization to serve as a cornerstone for subsequent operations and maintenance in case of import disruptions, ensuring energy security.

Guo emphasized that national protection aims to foster development, not isolate Taiwan from global competition. He stressed that the review of localization policies will consider industrial supply-demand dynamics, suggesting that if Taiwan does not face issues like Chinese dumping, strict localization may not be necessary. The government's focus remains on continuously introducing new technologies to Taiwan.

Regarding other emerging energy industries, media reports cited Premier Cho Rong-tai expressing the government's open attitude towards Small Modular Reactors (SMRs) for nuclear energy. Guo further highlighted the Ministry's current priority on geothermal and hydrogen energy, actively supporting applied research to achieve electricity generation costs below NT$3 per unit, aiming to achieve this before the US.

Currently, the cost of generating one unit of electricity from geothermal and hydrogen energy exceeds NT$10. According to US research reports, costs could drop below NT$3 by 2035. Guo expressed Taiwan's ambition to lower costs to this level by 2030, seizing the initiative. The Ministry of Economic Affairs' Energy , Taiwan Power Company (Taipower), and Industrial Technology Research Institute (ITRI) are all involved in ongoing research efforts.

Simultaneously, Taiwan is vigorously developing AI and attracting investments from tech giants, although facing talent shortages. Guo pointed out that the Ministry aims to train 200,000 AI engineers within four years, welcoming overseas Taiwanese students with 25,000 full scholarships annually to study semiconductor, AI, and related disciplines in Taiwan, on the condition of working for Taiwanese companies or staying in Taiwan for a specified period.

Reference: CNA (Central News Agency, Pan Zi-yu, Liu Qian-ying)｜udn (United Daily News, Chen Li-fen, Jian Yong-xiang, Lin Hai)