BlueFloat CEO says Taiwan must 'strike right balance' over floating wind local content

Developer references need to offer local support and retain international investor confidence as it unveils planned site for demo project

BlueFloat Energy CEO Carlos Martin.
BlueFloat Energy CEO Carlos Martin.Photo: BlueFloat Energy

BlueFloat CEO Carlos Martin urged Taiwan to "strike the right balance" on local content, as the developer probes the island’s supply chain capabilities and reveals the location of its planned first floating wind project there.

Taiwan’s strict offshore wind domestic content rules have come under renewed focus recently after green power giant Orsted was squeezed out of an auction by rivals who pledged to use more locally made equipment.

Global market pressures combined with Taiwan’s local content rules have sent the cost of offshore wind power there soaring.

Costs are still a critical factor in the local sector that is seeing rounds already allocated in government auctions still left without offtake contracts as major corporate energy users are unwilling to pay developers’ sky-high asking prices.

BlueFloat CEO Martin said that Taiwan “has been successful in building a strong offshore wind industry from scratch for bottom-fixed projects.

“We trust that the Taiwanese government will strike the right balance of supporting the local companies, while seeking economically efficient outcomes and providing investor confidence to international developers.”

“It is important to put in place enabling policies for building a competitive floating wind industry in Taiwan, which could supply new industries at reasonable power prices, thus triggering economic growth and creating jobs in the country.”

Taiwan's ongoing, multiphase round 3 procurement for 15GW by 2035 awards projects based on the amount of pledged domestically manufactured components, with a minimum 60%.

This has prompted warnings that the capacity awarded in the Round 3.2 process, revealed this week to be 2.7GW, might never be built. The EU last month lodged a World Trade Organisation complaint against the Taiwanese government over the rules.

BlueFloat is currently developing its 1GW Winds of September floating project off Taiwan, named after the famous seasonal gales blowing off the Taiwan Strait.

The developer announced today that it has signed a deal with Metal Industries Research & Development Centre (MIRDC) to analyse the island’s supply chain for floating offshore wind mooring and anchoring systems.

The collaboration “focuses on assessing the capabilities of the 1st and 2nd tiers of Taiwanese suppliers in key packages of floating foundations particularly,” said MIRDC chair Lin Jen-Yi.

“This cooperation with BlueFloat Energy marks an important first step for local enterprises in preparing themselves for supplying floating wind projects.”

BlueFloat today revealed the location of the first phase of Winds of September, which will be 23km offshore from Hsinchu City in northern Taiwan, southwest of capital Taipei.

This follows a “thorough energy yield” assessment of the area along with environmental and geophysical surveys, said BlueFloat.

The first phase will feature up to 12 floating platforms with 180MW capacity, deployed in waters ranging from 65-95 metres – just beyond the current range of fixed bottom technology.

Bluefloat is now gearing up for the government’s floating wind demonstration round expected later this year.

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Published 7 August 2024, 14:45Updated 7 August 2024, 14:45
Floating windBlueFloat EnergyCarlos MartinTaiwanAsia-Pacific