Taiwan Faces High Costs and Policy Hurdles as Offshore Wind Moves into Deeper Seas – EQ
In Short : Taiwan’s offshore wind sector is shifting from shallow waters to deeper sites of 60–90 meters, demanding advanced technology and greater state backing. While the nation targets 10.9 GW by 2030 and 60% renewable energy by 2050, rising costs and policy uncertainty threaten progress. Developers stress subsidies, stable frameworks, and floating turbine innovation for long-term viability.
In Detail : Taiwan’s offshore wind industry is entering a new phase as shallow coastal waters, once the most cost-effective sites for projects, are nearing full utilization. Developers are now looking to deeper waters, between 60 and 90 meters, where construction is more complex and expensive. This transition signals both opportunity and challenge for Taiwan’s clean energy ambitions.
The government has set ambitious renewable energy goals, aiming to achieve 10.9 GW of offshore wind capacity by 2030 and raise the renewable share to 60% of total power generation by 2050. However, the move into deeper waters could make these targets harder to reach without significant policy and financial support.
Developers are urging the government to provide subsidies and introduce more predictable regulatory frameworks. The higher cost of deeper-water installations, coupled with longer construction timelines, makes financial viability uncertain. Subsidy programs, similar to those seen in Europe, are being highlighted as critical for ensuring project success.
Taiwan had previously attracted global players by offering competitive auctions and strong policy backing. Early rounds saw aggressive bidding, including zero-strike price commitments. But in deeper waters, costs could push bids to T\$5–6 per kilowatt-hour, almost twice the price of coal power. This shift raises questions about affordability for end users.
Another concern is policy stability. The government recently scrapped strict local-content requirements, which once compelled developers to source equipment domestically. While this may reduce some burdens, the sudden shift has created uncertainty, leaving companies unsure about long-term rules and investment strategies in the offshore wind sector.
The delayed auction for 3 GW of new offshore capacity adds to investor unease. Developers are waiting for clarity on bidding rules and support mechanisms, while project timelines risk being pushed back. For Taiwan to maintain momentum, a transparent and reliable auction process is essential.
Floating wind turbine technology is emerging as a possible solution for deeper waters. Though still expensive, these systems could unlock vast new offshore wind potential. Experts believe Taiwan should invest in demonstration projects and innovation hubs to accelerate the adoption of floating platforms, which would strengthen its role in Asia’s offshore wind landscape.
Industry analysts caution that Taiwan may not meet its 18.4 GW offshore wind target by 2035. Instead, current projections suggest around 10 GW could be achievable by then. Without stronger intervention, the gap between ambition and reality could undermine Taiwan’s long-term renewable energy roadmap.
Despite these hurdles, Taiwan’s commitment to offshore wind remains strong. The transition to deeper waters represents both a technological frontier and a policy test. With the right mix of subsidies, clear regulations, and investment in floating turbine technology, Taiwan can continue to play a pioneering role in offshore renewable energy in the Asia-Pacific region.
