Taiwan’s floating wind plan relies on timely action

The launch of the floating offshore wind demonstration program will strengthen Taiwan’s pioneering position in the APAC energy transformation. Carlos Martín Rivals, CEO of BlueFloat Energy, called for urgent action to implement floating offshore wind projects in Taiwan. He emphasized the importance of announcing a feed-in tariff (FIT) by Q3 2024 to reduce the risk for development activities.

Martín Rivals emphasized that banking is a key factor in the consolidation of the floating wind market. Meeting the stringent requirements of lenders, export credit agencies, technical advisors and insurers will naturally filter out viable floater concepts and suppliers. “The criteria of developers and banking will naturally filter the floater universe,” he said, emphasizing the need for technologies that can meet these stringent standards.

He highlighted several critical factors for floating wind projects. First, offering cost-effective economics through well-structured FITs is key to encouraging developers to invest in the first floating wind projects. FITs will reduce the risk of the regulatory framework and establish a supply chain in line with the latest international best practices.

Martín Rivals also stressed the importance of port readiness, noting that port upgrades require significant support from government funds. Leveraging existing floating experience can improve local port infrastructure, with different requirements for demonstration and commercial projects.

Time is of the essence for Taiwan’s floating wind success. Announcing plans by Q3 2024, securing a weather window in 2025, and achieving a commercial operation date (COD) by 2030 are key milestones to support Taiwan’s net zero emissions goal. Timely action is critical to avoid missing key design windows.

Drawing lessons from international markets, Martín Rivals stressed the importance of pre-commercial projects. These projects are essential to accelerate cost reductions in subsequent commercial phases. Successful implementations in Portugal, France and the UK have shown the effectiveness of combining grants, subsidies and feed-in tariffs to stimulate the industry.

Referring to the critical role of ports, Martín Rivals noted that international markets often struggle with port readiness. He emphasized the need for government funding to upgrade port infrastructure, noting that the requirements for pre-commercial projects may differ from commercial ones. “It is important that we use the experience from existing floating projects, because they are very different from fixed-bottom wind projects,” he said.

Looking ahead, Martín Rivals recommended immediate action to ensure the project’s timely development, emphasizing the importance of no delays due to port infrastructure. He suggested implementing alternative mitigation measures to keep operations on track. Defining what the commercial phase of floating wind will look like is also crucial. Announcing the FIT by Q3 2024 will allow for bids to be submitted by Q1 2025, providing developers with the opportunity to use the 2025 weather window for field studies and achieve COD by 2030.

Finally, Martín Rivals emphasized that offshore wind, especially floating wind, can generate a significant number of jobs. This will be due to the huge amounts of cheap renewable energy attracting new industries such as data centers and shipbuilding plants.