Offshore wind
01 April 2020
Up to 2.5 GW offshore wind assets under development
Total capacity in operation (Formosa 1)
Once constructed, the Formosa portfolio will produce enough low-carbon electricity to power the equivalent of more than 2 million Taiwanese households
78% of contracts signed in Formosa 1 and Formosa 2 were with local Taiwanese entities or branch entities
Opportunity
However, in 2017, the Taiwanese Government signalled a major shift in its energy policy by committing to increase the volume of renewables in its electricity supply from 5% to 20% by 2025. Simultaneously, coal and nuclear power are being phased out, with targets to reduce coal consumption to 30%.
The transition to a renewable energy led system is being driven by the expansion of offshore wind power and the market's ambition to deliver 5.7 GW of offshore wind by 2025 and an additional 10 GW by 2035.
Together, the Formosa 1, Formosa 2 and Formosa 3 wind farms could deliver up to 2.5 GW of this ambitious target, powering the equivalent of over 2 million Taiwanese homes with clean, green power each year.
total green energy output by 2015
of offshore wind power targeted by 2025
Anthony Lamb
Head of GIG, Taiwan
Actions
GIG brought extensive offshore wind expertise, built in Europe, into the Taiwanese market through Formosa 1. Strategies, including multi-contracting Engineering, Procurement, Construction, Installation (EPCI) agreements, which are common forms of contracting in Europe, were adopted in Taiwan. The EPCI contract on Formosa 1 brought together a number of market-leading contractors including Fortune Electric, Jan De Nul, Siemens Gamesa and Taiwan International Ports Corporation.
The Taiwanese market also presented new and unique challenges to overcome. GIG led the environmental survey and data analysis works for Formosa 1’s construction phase.
In addition to assessing potential impacts on fishing activities and marine life, the project had to consider issues less common in the mature markets of western Europe, such as typhoons, tsunamis and limited grid infrastructure.
GIG's experience and innovative mindset played a key role in overcoming these challenges, delivering a ground-breaking project whose success is paving the way for future offshore wind developments in Taiwan.
GIG is now using the expertise developed on Formosa 1 to develop Formosa 2 and 3 alongside our partners. Formosa 1 has been in operation since December 2019 and Formosa 2 and 3 are expected to be operational before 2030.
Impact
F1 is the first and only operational offshore wind farm in Taiwan and is one of three landmark demonstration incentive projects approved by the Government to promote offshore wind development.
Located outside Miaoli County, it is owned and developed by Green Investment Group, Ørsted, JERA and Swancor Renewable.
F1 has 128 MW in operation and powers the equivalent of up to 128,000 Taiwanese households per year.
APAC Offshore Wind Deal of the Year, 2018
IJGlobal
Asia Pacific Renewables Deal of the Year, 2018
PFI Awards
Renewable Energy Deal of the Year, 2019
The Asset Triple A Infrastructure Awards
The pile as shown will form part of the foundation structure, which includes a jacket and 4 piles for each turbine. Each pile is approximately 65m long, has a 2.4m diameter and weighs 240 tonnes.
F2 is being jointly developed by Green Investment Group, JERA and Swancor Renewables as one of two ‘fast track’ programmes with the approval of the Taiwan Ministry of Economic Affairs. It is the first Taiwanese offshore wind project with local life insurance financing.
F2 is entitled to fixed Feed-in Tariff over a 20-year period under the Power Purchase Agreement with Taipower.
F2 utilises 47 market-leading 8 MW turbines to produce 376 MW, equivalent of powering up to 380,000 Taiwanese homes.
Best Syndicated Green Loan, 2019
The Asset Triple A Sustainable Capital Markets Regional Awards
Asia Green Project of the Year, 2020
The Asset Triple A Infrastructure Awards
Taiwan Green Project of the Year, 2020
The Asset Triple A Infrastructure Awards
F3 is an up to 2 GW offshore wind project comprised of three offshore wind farm sites located in Changhua county on the central-western coast of Taiwan.
Jointly developed by Green Investment Group, JERA and EnBW, it is the largest offshore wind project under development in Taiwan. F3 was granted Environmental Impact Assessment approval in 2018 and will apply for capacity in the next round of grid allocations.
When fully operational, it is estimated that F3 will generate enough green energy to power the equivalent of between 1.5 to 2 million Taiwanese households.
