Taiwan cancels two offshore wind projects

Taiwan

ENB Pub Note: I have included the energy mix for Taiwan, and some offshore wind may be viable due to the terrain, given that the country is energy-import-dependent. However, offshore wind would be an open target for attacks from neighboring countries looking to harm their electrical generation capabilities.

As of 2024, Taiwan’s electricity generation mix is heavily reliant on fossil fuels, with the following breakdown based on available data:
  • Fossil Fuels: 83.2% of total electricity generation
    • Natural Gas: 42.4%
    • Coal: 39.3%
    • Oil and Other Fossil Fuels: ~1.5%
  • Nuclear: 4.2%
  • Renewables: 11.6%
    • Solar: ~5%
    • Wind: ~4%
    • Hydropower and Other Renewables: ~2.6%
  • Pumped-Storage Hydropower: 1.1%
This mix reflects Taiwan’s dependence on imported fossil fuels (nearly 98% of its energy needs), with natural gas and coal dominating due to their role in baseload power generation. Renewables, particularly solar and wind, have grown in recent years, but their share remains limited. Nuclear power, once significant (up to 20% historically), has declined and is set to be phased out by 2025, with the Maanshan Nuclear Power Plant being the last operational facility. Taiwan’s government aims to shift the mix to 20% renewables, 50% natural gas, and 30% coal by 2025, alongside efforts to reduce greenhouse gas emissions and enhance energy security.

Taiwan’s government has cancelled the development rights for two offshore wind projects from the most recent Phase 3.2 auction.

All five developers that were awarded capacity in the offshore wind round submitted their contracts to the country’s Ministry of Economic Affairs earlier this month. The five tender winners were originally announced in August 2024, with a total of 2.7GW in offshore wind capacity.

They include Synera Renewable Energy’s 800MW Formosa 6, Shinfox’s 700MW Youde, Copenhagen Infrastructure Partners’ 600MW Fengmiao 2, Corio and TotalEnergies’ 360MW Formosa 3, and Enervest’s 240MW Deshuai projects.

At the time, the Taiwanese authorities stated that the developers who fail to meet requirements will have their wind farm qualification and capacity revoked. The site space and capacity will be included in future tenders.

The two eliminated projects were Enervest’s Deshuai and Formosa 3, developed by Corio and TotalEnergies. The two projects amount to 600MW of capacity.

The country’s Ministry of Economic Affairs stated that all five operators submitted their documents and completed the contract signing within the deadline. However, the two operators failed to pass the review.

This follows the revocation of the 300MW Haixia 1 from the Phase 3.1 tender, which was cancelled last month. In total, Taiwan revoked 900MW of offshore wind capacity across two separate tenders.

Authorities have not yet decided if the 900MW of revoked capacity would be incorporated into the upcoming Phase 3.3 tender.

Source: Splash247.com

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Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.