TAIPEI (Taiwan News) — Taiwan is reviewing its offshore wind development strategy after rising construction costs and financial strain disrupted several projects, Nikkei Asia reported Thursday.
The latest setback came after local developer Shinfox Energy was delisted from the Taiwan Stock Exchange following heavy losses tied to an offshore wind project off Changhua County. Although the company has pledged to complete the project, only one of the planned 31 turbines has been installed.
Taiwan has promoted offshore wind since 2017 through feed-in tariffs, financing support, and local content requirements to build a domestic supply chain. The country ranked third globally in newly installed offshore wind capacity last year and surpassed 500 installed turbines, with total generating capacity reaching 4.8 GW.
However, projects awarded under competitive bidding have come under increasing pressure as inflation drives up the cost of materials, equipment, and construction. France’s EDF Power Solutions has also sought to terminate one of its Taiwan offshore wind development contracts after struggling to secure financing and investors.
Economic Affairs Minister Kung Ming-hsin (龔明鑫) said the government is revising its bidding process to place emphasis on developers’ financial strength and execution, per Nikkei Asia.
Authorities have also relaxed local procurement requirements to lower costs. They are also considering expanded financing support, including higher investment limits for insurers and broader loan guarantees.
