All rights reserved. No part of this confidential report may be reproducedin any form or by any means without written permission from ITRI.

Policy and Promotion ofOffshore Wind Power in TaiwanPolicy and Promotion ofOffshore Wind Power in Taiwan

Thousand Wind Turbines ProjectThousand Wind Turbines Project

Ssu-yuan Hu / Office ManagerThousand Wind Turbines Promotion Office

operated by Industrial Technology Research Institutesupervised by Bureau of Energy, MOEA

Ssu-yuan Hu / Office ManagerThousand Wind Turbines Promotion Office

operated by Industrial Technology Research Institutesupervised by Bureau of Energy, MOEA

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OverviewOverview

Wind Resource in Taiwan

Promotion Target & Strategy

Demonstration Incentive Program

Technical Aspects

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Taiwan Offshore Wind PotentialTaiwan Offshore Wind Potential

Shallow Water (5-20 m)• Area: 1,779.2 km2

• Potential: 9 GW• Feasible: 1.2 GW

Deep Water (20-50 m)• Area: 6,547 km2

• Potential: 48 GW• Feasible: 5 GW

Deeper Water (> 50 m)• Potential: 90 GW• Feasible: 9 GW

Taiwan Stra

it

PacificOcean

Ref. “Wind Resource Assessment Handbook,” ITRI, 2011

Contour simulated by NCAR WRF 3.0 model

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Promotion Target for Wind EnergyPromotion Target for Wind Energy

1,050600450

WTs

810360450

WTs

570120450

WTs

3544

350WTs

3140

314WTs MWMWMWMWMW

Year 2012 2015 2020 2025 2030

Onshore 621 866 1,200 1,200 1,200Offshore 0 15 600 1,800 3,000

Total 621 881 1,800 3,000 4,200

Ref. Bureau of Energy, Ministry of Economic Affairs, TAIWAN

Thousand Wind Turbines Project• Short-term Target: 4 demonstration offshore wind turbines by 2015.

• Mid-term Target: Offshore 600 MW, total 1,800 MW by 2020.

• Long-term Target: Offshore 3,000 MW, total 4,200 MW by 2030.

Inst

alle

d Ca

paci

ty (M

W)

Turbines

1,200

1,000

800

600

400

200

0

4,200

3,600

3,000

2,400

1,800

1,200

600

0

1,050810

570354314

Installed CapacityTurbines

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Promotion StrategiesPromotion Strategies

Year 2015 2020 2030Onshore 866 1,200 1,200Offshore 15 600 3,000

Total 881 1,800 4,200

1,050600450

WTs

810360450

WTs

570120450

WTs

3544

350WTs

3020

302WTs MWMWMWMWMW

Year 2012 2015 2020 2025 2030

Onshore 596 866 1,200 1,200 1,200Offshore 0 15 600 1,800 3,000

Total 596 881 1,800 3,000 4,200

Feed-in Tariff (FIT)• Onshore: TWD2.6258 (€6.73c) / kWh during 2013

• Offshore: TWD5.5626 (€14.26c) / kWh during 2013

Offshore Demonstration Incentive Program (DIP)• Officially announced on 3rd 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

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Offshore Demonstration Incentive ProgramOffshore Demonstration Incentive Program

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)

3 Demonstration Wind Farms• Winners (Fuhai, Haiyang) officially announced on 9th January 2013

• Subsidize 50 % cost of the Demonstration Turbines (FIT advances/interest-free loan)

• Subsidize TWD250M for preparatory (wind mast, EIA, etc.) expense

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12 nmterritory 5 m depth

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Specifications & Requirement of DIPSpecifications & Requirement of DIP

Met Mast• Water depth: 10 m or more

• Height: 70 m or more

Demonstration Turbines• Capacity: 3 MW or more

• Commissioned by 2015

Demonstration Wind Farm• Water depth: 5 m or more

• Total capacity: 100-200 MW

• Commissioned by 2020

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Design Analysis• 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

Technology GapsTechnology Gaps

Pictures by: Vergnet, YCPS, Centrica

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European Experiences of Wind Farm Development• Strategy: demonstration vs commercial

• EIA solutions: navigation, fishery, environmental activists

• Onshore Infrastructure: design of onshore base for offshore wind farm industry

• Future: plans for floating turbines in deeper sea

Taiwan Offshore Demonstration Wind Farm Project• Developer: general consulting, project management and risk management

• 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)

Interaction between TW & EUInteraction between TW & EU

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2013 ITRIAll 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 Officehttp://www.twtpo.org.tw