M W

Policy and Promotion of
Offshore Wind Power in Taiwan
Thousand Wind Turbines Project
Dr. Ssu-yuan Hu / Office Manager
Thousand Wind Turbines Promotion Office
operated by
Industrial Technology Research Institute
supervised by Bureau of Energy, MOEA
All rights reserved. No part of this confidential report may be reproduced
in any form or by any means without written permission from ITRI.
Overview
Wind Resource in Taiwan
Promotion Targets & Strategies
Marine Industrial Planning
Focus of Cooperation
© copyright
2015 ITRI
1
Taiwan 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
Pacific
Ocean
Simulated by NCAR WRF 3.0 model
© copyright
Ref. “Wind Resource Assessment Handbook,” ITRI, 2011
2015 ITRI
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Current Status of Wind Development
金沙
4 MW (2x)
 Onshore (by the end of Aug 2015)
• State-owned:
169 WTs / 294 MW
• Private:
160 WTs / 350 MW
• Total:
329 WTs / 644 MW
(15.5 % of all RE)
觀園
大潭
30 MW (20x) 15.1 MW (8x)
石門
3.96 MW (6x)
新竹香山
12 MW (6x)
林口
6 MW (3x)
台中港
36 MW (18x)
觀威
43.7 MW (19x)
台中電廠
6 MW (3x)
桃威
4.6 MW (2x)
彰工
62 MW (31x)
豐威
11.5 MW (5x)
王功
23 MW (10x)
春風
1.75 MW (1x)
雲麥
46 MW (23x)
崎威
6.9 MW (3x)
中屯
4.8 MW (8x)
竹南 (苗栗)
7.8 MW (4x)
龍威
34 MW (16x)
• 2014 Production: ≈ 1,500 GWh
(15.2 % of all RE)
 Offshore
蘆竹
7.2 MW (8x)
大鵬 (苗栗)
42 MW (21x)
通威
23 MW (10x)
湖西
5.4 MW (6x)
中威
75.9 MW (33x)
四湖
28 MW (14x)
鹿威
96.6 MW (42x)
恆春
4.5 MW (3x)
麥寮
2.64 MW (4x)
• No offshore wind turbine
has been installed yet.
State-owned
Private
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Ref. Bureau of Energy, Ministry of Economic Affairs, TAIWAN
2015 ITRI
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Targets for Wind Power
 Thousand Wind Turbines Project 千架海陸風力機計畫
• Short-term Target: 4 demonstration offshore wind turbines by 2016
• Mid-term Target:
Offshore 520 MW, total 1,720 MW by 2020
• Long-term Target:
Offshore 4,000 MW, total 5,200 MW by 2030
1,250
4,500
Installed Capacity
Turbines
1,400
1,200
1,000
3,600
800
2,700
1,800
600
311
400
900
200
0
Year
Onshore
Offshore
Total
Turbines
Installed Capacity (MW)
5,400
0
2013
MW
WTs
614
311
0
0
614
311
2015
MW
737
0
737
2020
MW
1,200
520
1,720
2025
MW
1,200
2,000
3,200
2030
MW
WTs
1,200
450
4,000
800
5,200 1,250
© copyright
Ref. Bureau of Energy, Ministry of Economic Affairs, TAIWAN
2015 ITRI
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Strategies for Offshore Wind
 Feed-in Tariff (FIT, 躉購電價): PPA guaranteed for 20 years
• Option 1: NT$5.7405 (€15.9₵) /kWh for 20 years
• Option 2: NT$7.1085 (€19.7₵) /kWh [Year 1-10] & NT$3.4586 (€9.6₵) /kWh [Year 11-20]
 Offshore Demonstration Incentive Program (DIP, 示範獎勵辦法)
• 4 Demonstration Turbines by 2016, 3 Demonstration Wind Farms by 2020
• Government provides subsidy for both equipment & developing processes
 Offshore Zone Application for Planning (ZAP, 場址申請作業要點)
• 36 Zones of Potential revealed for preparation in advance of Zonal Development
• Applicants must acquire EIA consent by 2017 and Preparation Permit by 2019
 Offshore Zonal Development (區塊開發)
• To be announced by 2017 while SEA is currently in progress
• Commercial scale for cost reduction (similar to Round 3 of UK)
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2015 ITRI
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Offshore Demonstration Incentive Program
 3 Demonstration Wind Farms
• Winners (Fuhai, Formosa & TPC) officially announced on 9th January 2013
• To subsidize 50 % cost of the Demonstration Turbines (FIT advances/interest-free loan)
• To subsidize NT$250M (€6.9M) for preparatory (wind mast, EIA, etc.) expense
• To confirm feasibility in terms of administration, technology and finance
Demonstration Turbines
commissioned
(originally Dec. 2015, and
has been adjusted to Dec. 2016)
Demonstration
Wind Farms
commissioned
(Dec. 2020)
Formosa
Fuhai
TPC
Plan
initiation
(Jul. 2012)
Proposal
review
complete
(Dec. 2012)
Establishment
Permit
(Dec. 2014)
Construction
Permit
(Dec. 2018)
Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10
(2012) (2013) (2014) (2015) (2016) (2017) (2018) (2019) (2020) (2021) (2022)
12 nm
territory
5 m depth
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2015 ITRI
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Specifications & Requirement of DIP
 Met Mast 海氣象觀測塔
• Water depth: 10 m or more
• Height: 70 m or more
 Demonstration Turbines
示範機組
 Demonstration Wind Farm
示範風場
• Water depth: 5 m or more
• Capacity: 100-200 MW each
• Commissioned by 2020
• Capacity: at least 3 MW each
• Commissioned by 2016
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2015 ITRI
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Awarded Demonstration Projects
Fuhai (福海) @Changhua
• Capacity: 120 MW (30 turbines)
• Distance from Shore: 8-12 km
• Water Depth: 20-45 m
Formosa (海洋) @Miaoli
• Capacity: 128 MW (32 turbines)
• Distance from Shore: 2-6 km
• Water Depth: 15-35 m
TPC (台電) @Changhua
• Capacity: approx. 108 MW (22-36 turbines)
• Distance from Shore: 5-8 km
• Water Depth: 15-25 m
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2015 ITRI
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Potential Zones → ZAP → Zonal Development
 Siting for Zones of Potential (ZoP)
• Within 50 m isobath of west coast
• Excluding protected, restricted, planned or developed area
• 36 ZoP: total 3,084.5 km2 (approx. 25 GW)
 Directions of ZAP (announced in July 2015)
• Applicants should plan for the whole zone.
• Total capacity of each case: > 100 MW
• Capacity density: > 5 MW/km2
 Zonal Development
• SEA & inter-department
negotiation will be
conducted based
on 36 ZoP.
DIP Sites
© copyright
Ref. Bureau of Energy, Ministry of Economic Affairs, TAIWAN
2015 ITRI
9
Major Challenges
 Marine Spatial Planning
•
•
•
•
Navigation: routes planning & safety concerns
Fishery: fishing & aquaculture
ECO: migrating birds & marine mammals
Inter-department Negotiation: conflicts or ambiguities of existing regulations
 Infrastructure
• Ports & Quays: to be negotiated with Taiwan International Ports Corporation, Ltd.
• Industrial Park: layout & public facilities to be negotiated with potential users
 Self-sustaining Industry
• O&M: lack of local supply chain and offshore wind experience
• Marine Construction: lack of practical experience in deep water
• Construction Vessels: lack of jackup vessels with deep-water capabilities
 Capital
• Finance: local banks are unfamiliar with project finance of offshore wind
• Insurance: local insurers are unfamiliar with risk management of offshore wind
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2015 ITRI
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Investment by Developers
 Offshore 4,000 MW by 2030 → NT$750B (€21B) investment
 Policy → Developers → Service Providers → Manufacturers
2013 NT$37.0B
2015 NT$44.4B
2020 NT$160.2B 2025 NT$410.6B 2030 NT$750.0B
新台幣十億元
MW
6,000
5,000
Annual Investment
800
700
2013-2015: NT$ 3.7 Billion/yr
2016-2020: NT$23.2 Billion/yr
2021-2030: NT$58.9 Billion/yr
600
500
410.6
400
3,000
2,000
Offshore (MW)
海域風力
MW
陸域風力
MW
Onshore (MW)
累計投資額
Accumulated十億元
Investment
300
200
160.2
1,000
37.0
NT$ in billion
4,000
750.0
100
44.4
0
0
2013
2015
2020
2025
2030
© copyright
2015 ITRI
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Supply Chain of Wind in Taiwan
Service
Manufacture
Raw Material
Components/Sub-system
System
Planning
Operation
TPC, Infravest,
TGC, Formosa,
Fuhai, TCCY
Steel
Electrical Sys.
Tower
Onshore
CSC
TECO, TATUNG,
Fortune,
SHIHLIN, Chung
Hsin, Allis
CSC, Lihkang
TECO
TPC, Infravest,
TGC, Sinotech,
Iy-Hsing, CECI
Offshore
Construction
New Wind
Power
(TECO/CSC)
Chung Hsin,
Fortune, LUXE,
Star Energy,
Woen Jinn,
Hwa Chi,
AIDC, CSC
Fiber
Formosa
Plastics,
TaiwanGlass,
CHUNG YEH,
Drewloong
Epoxy
Swancor,
Eternal
Materials
Blade
HorizonYacht,
China FRP
Gearbox
Control
FHI
TECO, AIDC,
Advantech
Cast/Forge
YJF Casting,
Yeong Guan, Yih
Guang, Cheng
Sheng, Cheng
Feng, NAN
LUNG, …`
Developer
Balance of Plant (BoP)
Foundation
Cable
Maintenance
Matured
CSC, CSBC,
Hung Hua,
Woen Jinn,
Chau-Hsen,
Hwa Chi
TAYA
Solvent,
KUANG-LEE,
Vestech, CSC
Capable
Insufficient
© copyright
2015 ITRI
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Marine Industrial Planning
Demonstration Turbines
Quays Vessels
Zonal
DIP
2012
2013
2014
2015
2016
2017
2018
2019
Demonstration Wind Farms
2020
…
…
2030
Private 248 MW
4 Private Turbines
State-owned 108 MW
Zones of Potential
Revealed
Vessel Design by ICP
ZAP
Zonal Development - 4 GW
SEA
Fleet #1 by 2018
Coordination of
Existing Vessels
Adaptation of
Existing Quays
Fleet #2 by 2021
3-4 Heavy Load Quays
1-2 Heavy Load Quays
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2015 ITRI
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International Interactions of Offshore Wind
 Successful Experiences of Wind Farm Development
• Strategy: demonstration project vs commercial scale
• EIA Solutions: navigation, fishery, environmental activists
• Onshore Infrastructure: design of onshore base for offshore wind farm industry
• Marine Construction: vessels, equipment, HSQE regulations and licensing system
• Finance & Insurance: project finance, export credit and risk management
 Taiwan: the Best Entrance into Asian Market of Offshore Wind
• Resource: best offshore wind resource in the world
• Developers’ Need: general consulting, project management and financial advice
• Service Providers’ Need: marine construction and O&M
• Manufacturers’ Need: typhoon-proof design technology
© copyright
2015 ITRI
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Thousand Wind Turbines Promotion Office
http://www.twtpo.org.tw
© copyright
All rights reserved. No part of this confidential report
may be reproduced
2015 ITRI
in any form or by any means without written permission from ITRI.15