The proposed reduction in 2019 Feed-in-Tariffs (FiTs) for offshore wind in Taiwan could potentially have a negative impact on Ørsted's localisation plans and the final investment decision for the company's first offshore projects in the country, a spokesperson for Ørsted told Offshore WIND.
As reported earlier, Taiwan’s Ministry of Economic Affairs proposed a 12.71% reduction in FiTs for offshore wind projects that sign their Power Purchase Agreements (PPAs) in 2019 as compared to the 2018 rate.
“We are on track when it comes to the milestones we need to enter the PPA in 2018,'' Ørsted's spokesperson said.
''However, if we for any reason slipped into 2019 - and if the drafted 12.7% cut in FIT for offshore wind in 2019 became indeed reality - then it would have a negative impact on Ørsted's localisation plans and also on our final investment decision for the first Taiwanese offshore projects, planned for March next year.”
Developers that secured rights to build offshore wind farms in Taiwan have to sign their PPAs with Taipower by the end of 2019.
The ministry will hold public hearings on the proposed 2019 FiTs by the end of the year before making the final decision. The new FiTs are expected to be issued by February 2019.
Ørsted secured rights to develop a total of 1,820MW of offshore wind capacity in Taiwan in auctions held in April and June. These projects offshore Changhua County are expected to be built from 2021 onward.