Getting power purchase agreements signed before the end of 2019 was a wise business move.
The government in Taiwan has lowered the feed-in tariff (FIT) for offshore wind projects compared to last year's level, several media report.
According to Taiwan's Ministry of Economic Affairs, project owners will be offered TWD 5,094.6 per MWh against TWD 5,515 per MWh for a 20-year contract, roughly corresponding to EUR 151 and EUR 163.5.
It will also be possible to enter a more divided contract, in which companies receive TWD 5,801.5 per MWh for the first ten years and then TWD 3,822.7 for the last ten years.
According to the ministry, the reason behind the reduction is that "it reflects the technological progress and gives consideration to international development tendencies."
Taiwan also reduced FITs in early 2019 form TWD 5,519 per MWh to TWD 5,849.
In 2019, players including Copenhagen Infrastructure Partners and China Steel Corp entered PPAs for a total of 900 MW relating to three projects, Chong Neng at 300 MW, Changfang 552 MW and the 48 MW Xidao. The former is being developed by these two companies.
Ørsted also entered a deal for Changhua 1 and 2a, totaling 900 MW, while Northland Power and Yushan Energy signed a deal for the 300 Hai Long facility.
English Edit: Daniel Frank Christensen