All rights reserved.

No part of this confidential report may be reproduced

in any form or by any means without written permission from ITRI.
Policy and Promotion of
Offshore Wind Power in Taiwan
Thousand Wind Turbines Project
Ssu-yuan Hu / Office Manager
Thousand Wind Turbines Promotion Office
operated by Industrial Technology Research Institute
supervised by Bureau of Energy, MOEA
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2014 ITRI
Overview
Wind Resource in Taiwan
Promotion Target & Strategy
Demonstration Incentive Program
Focus of Cooperation
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2014 ITRI
Taiwan Offshore Wind Potential
Shallow Water (5-20 m)
Area: 1,779.2 km
2
Potential: 9 GW
Feasible: 1.2 GW
Deep Water (20-50 m)
Area: 6,547 km
2
Potential: 48 GW
Feasible: 5 GW
Deeper Water (> 50 m)
Potential: 90 GW
Feasible: 9 GW
Pacific
Ocean
Ref. Wind Resource Assessment Handbook, ITRI, 2011
Contour simulated by NCAR WRF 3.0 model
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2014 ITRI
Current Status of Wind Development
Onshore
(by the end of Feb. 2014)
State-owned: 161 WTs / 287 MW
Private: 157 WTs / 343 MW
Total: 318 WTs / 630 MW
(16.3 % of all RE)
2013 Production: 1,574 MWh
(14.7 % of all RE)
Offshore
No offshore wind turbine
has been installed yet.

4.5 MW (3x)

3.96 MW (6x)

6 MW (3x)

15.1 MW (8x)

30 MW (20x)

12 MW (6x)

34 MW (17x)

8 MW (4x)

62 MW (31x)

23 MW (10x)

46 MW (23x)

28 MW (14x)

5.4 MW (6x)

4.8 MW (8x)

4 MW (2x)
/
43.7 MW (19x)

4.6 MW (2x)

11.5 MW (5x)

1.75 MW (1x)
/
14.7 MW (7x)

34 MW (16x)

16.1 MW (7x)

42 MW (21x)
/
75.9 MW (33x)
/
96.6 MW (42x)

2.64 MW (4x)
State-owned
Private
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2014 ITRI
Target for Wind Energy
Ref. Bureau of Energy, Ministry of Economic Affairs, TAIWAN
Thousand Wind Turbines Project
Short-termTarget: 4 demonstration offshore wind turbines by 2015.
Mid-termTarget: Offshore 320 MW, total 1,520 MW by 2020.
Long-termTarget: Offshore 3,000 MW, total 4,200 MW by 2030.
0
200
400
600
800
1,000
1,200
0
600
1,200
1,800
2,400
3,000
3,600
4,200
C
a
p
a
c
i
t
y

(
M
W
)
Year 2013 2015 2020 2025 2030
MW WTs MW MW MW MW WTs
Onshore 614 311 814 1,200 1,200 1,200 450
Offshore 0 0 15 320 1,520 3,000 600
Total 614 311 829 1,520 2,720 4,200 1,050
I
n
s
t
a
l
l
e
d

C
a
p
a
c
i
t
y

(
M
W
)
T
u
r
b
i
n
e
s
1,200
1,000
800
600
400
200
0
4,200
3,600
3,000
2,400
1,800
1,200
600
0
1,050
311
Installed Capacity
Turbines
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2014 ITRI
Promoting Offshore
Feed-in Tariff (FIT)
Onshore: NT$2.6338 / kWh during 2014
Offshore: NT$5.6076 / kWh during 2014
Offshore Demonstration Incentive Program (DIP)

Officially announced on 3
rd
July, 2012
4 Demonstration Turbines by 2015, 3 Demonstration Wind Farms by 2020
Government provides subsidy for both equipment & developing processes
Zonal Development
Industrial Zone for offshore wind farms (e.g. Round 3 of UK)
Commercial scale for cost down
Year 2015 2020 2030
Onshore 814 1,200 1,200
Offshore 15 320 3,000
Total 829 1,520 4,200
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2014 ITRI
Offshore Demonstration Incentive Program
3 Demonstration Wind Farms
Winners (Fuhai, Formosa & TPC) officially announced on 9
th
January 2013
Subsidize 50 % cost of the Demonstration Turbines (FIT advances/interest-free loan)
Subsidize NT$250m for preparatory (wind mast, EIA, etc.) expense
Year 0
(2012)
Year 1
(2013)
Year 2
(2014)
Year 3
(2015)
Year 4
(2016)
Year 5
(2017)
Year 6
(2018)
Year 7
(2019)
Year 8
(2020)
Year 9
(2021)
Year 10
(2022)
Proposal
deadline
(Oct. 2012)
Demonstration
Turbines
commissioned
(Dec. 2015)
Demonstration
Wind Farms
commissioned
(Dec. 2020)
Plan
initiation
(Jul. 2012)
Proposal
review
complete
(Jan. 2013)
Establishment
Permit
(Dec. 2014)
Construction
Permit
(Dec. 2018)
Formosa
Fuhai
TPC
5 m depth
12 nm
territory
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2014 ITRI
Specifications & Requirement of DIP
Met Mast
Water depth: 10 m or more
Height: 70 m or more
Demonstration Turbines

Capacity: at least 3 MW each

Commissioned by 2015
Demonstration Wind Farm

Water depth: 5 m or more

Capacity: 100-200 MW each
Commissioned by 2020
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2014 ITRI
Awarded Demonstration Projects
Fuhai () @Changhua
Capacity: 108 MW (30 turbines)
Distance fromShore: 11 km
Water Depth: 25-40 m
Formosa () @Miaoli
Capacity: 130 MW (36 turbines)
Distance fromShore: 1-5 km
Water Depth: 5-30 m
TPC () @Changhua
Capacity: apprx. 108 MW (22-36 turbines)
Distance fromShore: 6-8 km
Water Depth: 15-25 m
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2014 ITRI
Investment by Developer
356
501
1205
3113
5466
0
1000
2000
3000
4000
5000
6000
2013 2015 2020 2025 2030
MW
0
1000
2000
3000
4000
5000
6000

MW
MW

Annual Investment
2013-2015: 7.3b/yr
2016-2020: 14.1b/yr
2021-2030: 42.6b/yr
Offshore (MW)
Onshore (MW)
Accumulated Investment
2030 2025 2020 2015 2013
NT$546.6b NT$311.3b NT$120.5b NT$50.1b NT$35.6b
N
T
$

i
n

b
i
l
l
i
o
n
Offshore Wind Farm Investment: NT$159m/MW
Offshore 3,000 MW by 2030 NT$480 billion investment
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2014 ITRI
Investment by Service Provider
Source: DECC
Manufacture
Fleet investment
NT$15-22.5b
(100-150m/ship)
R&D investment
NT$12b
(80m/GW)
Turbines (component/system/subsystem)
Electric System (cable/substation)
Foundation/Sub-structure
Marine Construction & Installation
O&M for Wind Turbines
Fleet Supply
Construction
Source: DECC
Foundation
12.4%
Turbine
25%
O&M
37.4%
15.8%
Construction
Misc 0.5%
Planning 2.5%
Electric System 6.4%
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Design against Environment
Turbine design resistant to typhoons
Foundation design resistant to earthquakes
Environmental Impact Assessment
Migrating birds & ocean mammals
Local fishery, navigation and harbor development
Project Management
Risk assessment and mitigation
Vessel coordination and construction scheduling
Risk Identifications
Pictures from: Vergnet, YCPS, Centrica
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Successful Experiences of Wind Farm Development in Europe
Strategy: demonstration vs commercial
EIA solutions: navigation, fishery, environmental activists
Onshore Infrastructure: design of onshore base for offshore wind farm industry
Finance & Insurance: project finance and risk management
Taiwan Offshore Demonstration Wind Farm Project
Developer: general consulting, project management and financial advice
Equipment: typhoon-proof design technology
Service: marine construction and O&M
Offshore Test Wind Farm
Offshore test site for new turbine technology (e.g. Hunterston or EOWDC)
International Interactions of Offshore Wind
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2014 ITRI
All rights reserved. No part of this confidential report may be reproduced
in any form or by any means without written permission from ITRI.
Thousand Wind Turbines Promotion Office
http://www.twtpo.org.tw