What's Happening?
Taiwan is revising its approach to offshore wind tenders to improve project viability, as announced by the Ministry of Economic Affairs (MOEA). The new strategy, set for the upcoming Round 3.3 auction,
shifts focus from price-led and localization-centric rules to prioritizing execution and delivery capabilities of developers. This change comes after a turbulent year in 2025 for the offshore wind sector, where many projects globally failed to reach final investment decisions. The proposed rules will now emphasize developer track record and financial capacity, accounting for a significant portion of the evaluation score. Additionally, Environmental, Social, and Governance (ESG) requirements will be integrated into the early planning stages to minimize project delays. The target capacity for this round is 3.6 GW, with grid connections expected between 2030-2031.
Why It's Important?
This policy shift is crucial for Taiwan's renewable energy strategy, aiming to achieve 60% renewable energy by 2050. By focusing on developer capabilities and ESG criteria, Taiwan seeks to attract reliable and financially robust developers, potentially leading to more sustainable and timely project completions. This approach could serve as a model for other countries facing similar challenges in the renewable energy sector. The integration of ESG factors early in the process is particularly significant, as it may reduce costs and delays associated with post-award assessments. This move could enhance Taiwan's position in the global renewable energy market, encouraging joint-development partnerships and attracting international investment.
What's Next?
The MOEA plans to finalize the new rules by the first quarter of the year, with a selection mechanism to follow. This timeline suggests that developers will soon need to adapt to the new criteria, potentially leading to strategic partnerships to meet the financial and technical requirements. The focus on ESG criteria may also prompt developers to incorporate sustainable practices earlier in their project planning. As Taiwan progresses towards its renewable energy goals, the outcomes of this tender round could influence future policy adjustments and set a precedent for other nations in the renewable energy sector.
