Key facts
- Taiwan's renewable energy target of 20% by 2025 has been delayed to November 2026.
- The government aims to reach 5.3GW of installed offshore wind capacity by the end of 2026.
- Developers in recent bidding rounds offered near-zero feed-in tariffs, making corporate power purchase agreements crucial.
- Rising inflation and construction costs have caused some companies to exit Taiwan's offshore wind market.
- Authorities are reviewing bidding processes to maintain investment in the sector.
Taiwan's ambitious offshore wind energy program is facing significant headwinds due to rising inflation and construction costs, prompting authorities to reconsider their approach to attract continued investment.
The government's initial goal of achieving a 20% share of renewable energy by 2025 has been delayed to November 2026, with an interim target of 30% by 2030. The Ministry of Economic Affairs aims to increase installed offshore wind capacity to 5.3GW by the end of 2026 and approximately 13GW by 2030. As of April 2026, about 4.6GW had been installed.
New rules for the third phase of offshore wind projects, planned from 2026 to 2035, were published in August 2021. However, intense competition led bidders in rounds 3.1 and 3.2 to offer near-zero feed-in tariffs, making corporate power purchase agreements (CPPA) essential for project viability. The tender mechanism for round 3.3, allocating 3.6GW for grid connection in 2030-2031, was refined in March 2026.
These challenges, coupled with global factors like war and inflation, have caused several offshore wind developers, including RWE, BlueFloat, Iberdrola, Northland Power, and EnBW, to pause or exit the Taiwanese market. Authorities are now reviewing the bidding processes and market mechanisms to ensure the sector remains attractive for investment.