Taiwan announces new offshore wind auction

Taiwan’s Ministry of Economic Affairs (MOEA) opened the latest round of its offshore wind development programme, announcing a new auction offering up to 3.6 gigawatt (GW) of capacity. Applications will open today, 1 April and remain open until the end of September, with the government expected to announce successful bidders before the end of the year.

The projects allocated capacity in this round are scheduled to reach grid connection between 2030 and 2031.

Peter Jang, an expert in renewable energy at Pinsent Masons, said: “Taiwan’s offshore wind market was quiet for some time and this new auction is a sign that momentum is returning, with it set to attract strong interest from international and domestic developers.”

“For developers, financiers and corporate power purchasers, the next six months are critical for positioning, consortium formation and early commercial structuring ahead of bid submissions,” he said.

“The 3.6GW auction reinforces Taiwan’s position as one of the most mature offshore wind markets in Asia outside mainland China, and signals continued commitment to its pipeline despite cost pressures and supply chain constraints affecting global offshore wind development.”

The MOEA has yet to publish detailed tender conditions, but the timeline gives potential bidders a six month window to structure consortia, secure commitments from suppliers and shape their commercial strategies ahead of a submission. The scoring metric for the auction assigns equal weight to a developer’s performance record and project execution capability at 35% each, while financial capacity accounts for 30%.

Yong Neng Chan, an expert in offshore wind projects at Pinsent Masons, said: “With 70% of the Ministry’s scoring metric based on performance record and execution capability, the auction favours developers who have proven construction and commissioning experience.”

“While corporate power purchase agreements remain the primary pricing mechanism, a minimum guaranteed purchase price has also been introduced,” he said.

“This move supports project financing and reduces development risk.”

New incentives, which Jang said were “designed to promote early completion” of projects, have been also introduced.They include an extension of up to five years on electricity sales after the standard 20-year period for projects that achieve early grid connection or deliver certain specified benefits.

“A new mechanism means developers can increase their allocated capacity by up to 50%, which the Ministry says will improve the efficient use of maritime space,” Jang said.