Taiwan Offshore Wind Policy and Regulation

Transcription

1 Taiwan Offshore Wind Policy and Regulation Prepared by: Emilie Reeve 2 nd May 2018, Glasgow 0

2 Taiwan offshore wind development target timeline Government set timeframe for offshore wind growth Current Capacity Offshore wind targets Mid-Term (2020) Long-Term (2025) 8 MW 520 MW 5,500 MW Demonstration Incentive Program (DIP) Zonal Application Planning (ZAP) Zonal Development (ZD) Up to 2020: Aim to demonstrate offshore wind capabilities in Taiwan. Subsidy for 50% of the turbine installation costs. NT$250 million (c.us$ 8 million) towards CAPEX costs for demonstration wind farms. Swancor s Formosa I: MW Taipower Chang Hua South: MW Both DIPs have grid access reserved therefore no need to participate in the selection process : Aim to build offshore wind industry and development in Taiwan. 0.5 GW for projects with an expected installed capacity by GW for projects with an expected installed capacity by Projects are required to undergo a selection process with government awarding capacity. Fixed feed in tariff (FiT) onwards: Aim to support development and become a selfsustaining industry. 2 GW installed capacity available to projects that were not selected in the previous round but will be operational by Projects to undergo an auction process. No FiT available (Auction based) Timeline Applies to 2020 target only Applies to 2025 target Applies to both 2020 and 2025 targets Demo plan announced (Jul 2012) First turbines installed (Aug 2016) Signed government contract for permission to develop Projects expected to have ~50% installed by 2020, final completion by Signed PPA For project expected to have ~50% installed by Signed government contract for permission to develop Projects expected to complete installation by Construction year Construction permit required one year after obtaining government permission to develop Operation year At least 50% installation completion one year after construction year. All underwater construction completed Following year Commissioning of OWF project required one year after operation year Phase 3 Potential 3 GW DIP Construction year Operation year Following year ZAP ZD

3 Taiwan offshore wind development target timeline Government set timeframe for offshore wind growth Current Capacity Offshore wind targets Mid-Term (2020) Long-Term (2025) 8 MW 520 MW 5,500 MW Demonstration Incentive Program (DIP) Zonal Application Planning (ZAP) Zonal Development (ZP) Up to 2020: Aim to demonstrate offshore wind capabilities in Taiwan. Subsidy for 50% of the turbine installation costs. NT$250 million (c.us$ 8 million) towards CAPEX costs for demonstration wind farms. New sites awarded 30/04/ GW for 2020 completion Swancor s Formosa I: MW Taipower Chang Hua South: MW 3GW for 2025 completion Both DIPs have grid access reserved therefore no need to participate in the selection process : Aim to build offshore wind industry and development in Taiwan. 0.5 GW for projects with an expected installed capacity by GW for projects with an expected installed capacity by Projects are required to undergo a selection process with government awarding capacity. Fixed feed in tariff (FiT) onwards: Aim to support development and become a selfsustaining industry. 2 GW installed capacity available to projects that were not selected in the previous round but will be operational by Projects to undergo an auction process. No FiT available (Auction based) Timeline Applies to 2020 target only Applies to 2025 target Applies to both 2020 and 2025 targets Demo plan announced (Jul 2012) First turbines installed (Aug 2016) Signed government contract for permission to develop Projects expected to have ~50% installed by 2020, final completion by Signed PPA For project expected to have ~50% installed by Signed government contract for permission to develop Projects expected to complete installation by Construction year Construction permit required one year after obtaining government permission to develop Operation year At least 50% installation completion one year after construction year. All underwater construction completed Following year Commissioning of OWF project required one year after operation year Phase 3 Potential 3 GW DIP Construction year Operation year Following year ZAP ZD

4 Sites awarded 30/04/2018 Zone number Capacity (MW) Owner(s) Completion target 2020 Out of zone InfraVest; WPD 5& Macquarie; Swancor Completion target InfraVest; WPD Orsted Out of Zone InfraVest; WPD Orsted CIP; TGC CIP; TGC CSC; CIP; Diamond Generation B 48.0 CIP; TGC Orsted Taipower Northland; Yushan Total capacity by 2020 (exc. Demo) 738 MW Total capacity Total capacity awarded 3,098 MW 3,836 MW 3

5 Future opportunities Auction and zonal development Auction process overview Projects not awarded capacity in the selection process may enter the auction process for 2 GW installed capacity by Eligible projects are those which scored 60 or above in the selection process, but are not allocated their entire capacity. Sealed bid applications are expected to be submitted, with the auction expected to take place in June Bureau of Energy will allocat all remaining capacity (of the total 5.5 GW) after the capacity allocated in the selection process has been deducted. There is currently no clarity on the auction mechanism or how capacity will be allocated to winners of the auction process. Final agreed FIT will be the lowest price between granted price during the auction process and announced FIT rate in the year of signing the PPA. This poses a price risk to developers. Zonal Development (ZD) Focussed on: - Build out of ZAP wind farms. - Develop a self-sustaining, growing and commercial offshore wind industry and supply chain in Taiwan. Additional capacity is expected to be confirmed in 2019: - It is estimated that there may be an additional 3 GW available capacity for projects expected to be operational between However, no confirmation has been provided and this assessment may change. To date, no indication has been given as to whether zones of potential will be identified for Phase 3. 4

6 Future challenges From policy to supply chain Policy» Some policies are still yet to be announced/considered» Future development plans» The China factor (whether to accept Chinese investment, vessels, or components)» Lessons learnt and streamlined approach on processes e.g. consenting Local infrastructure» Insufficient local infrastructure at present» Construction harbours and O&M ports» Grid capacity» Offshore substations Marine constraints» Various competing marine uses» Fisheries» Marine traffic» Environmental concerns (white dolphin, birds etc.) Supply chain» Local supply chain doesn t meet requirements» Fabrication yards» Qualified technicians for construction, O&M» Vessels» Suitable processes e.g. operations manuals, HSE etc. 5

7 More information RCG article on Taiwan market following recent announcements can be found at Gareth Lewis Managing Director, New Markets London & Taipei Mobile ӏ Michael Chang Director, Taipei Emilie Reeve Associate Director, London Mobile ӏ 6

8 RCG is a specialized expert services firm, focused solely on the global renewable energy industry. We deliver integrated market research, management consulting and technical advisory for both mainstream and emerging energy technologies. Our professionals come from a wide range of industry and consulting backgrounds, providing us with unique perspective of our client s business, and a fresh approach to navigating the complex challenges they face. We serve our clients across Europe, North America and Asia Pacific. London, Ltd. Gilmoora House Mortimer St. Fitzrovia London W1W 8HS New York, LLC. 433 Broadway 6th Floor New York NY Amsterdam, B.V. Gustav Mahlerplein MA Amsterdam The Netherlands For further information and latest insights visit: Taipei City Taipei Hsin Ji Business Centre 18F., No.460, Sec. 4 Xinyi Rd. Xinyi Dist. Taipei City Taiwan Copyright, All rights reserved. 7