Taiwan Moves to Terminate Contract for 700 MW Offshore Wind Project

Taiwan’s Energy Administration is processing the termination of the administrative contract for the 700 MW Youde offshore wind project, developed by Shinfox Energy.

According to Taiwan’s Central News Agency (CNA), the Energy Administration confirmed on 24 August that the developer had not completed payment of the outstanding performance bond.

The Youde project company had paid 50 per cent of the required performance bond when the administrative contract was signed, with the remaining 50 per cent due one year after signing. According to the Energy Administration, it requested payment of the outstanding amount from the developer on 18 May and 12 June 2026.

The agency subsequently gave the developer a final deadline in August. The remaining performance bond had still not been paid when that deadline expired, after which the Energy Administration began the contract termination process, within which the developer has also submitted its response, CNA reports.

Youde was selected in Taiwan’s Offshore Wind Block Development Phase 3.2 selection process in August 2024 as one of five projects awarded capacity, the four others being the 800 MW Formosa 6 (Synera Renewable Energy), the 600 MW Fengmiao 2 (Copenhagen Infrastructure Partners), the 360 MW Formosa 3/Haiding 1 (Corio Generation and TotalEnergies), and the 240 MW Deshuai (Enervest).

In May last year, the Ministry of Economic Affairs (MOEA) announced that all five developers submitted their contract applications, but the Ministry subsequently cancelled the development rights for Corio and TotalEnergies’ Formosa 3 and Enervest’s Deshuai for failing to meet requirements.

Taiwan has subsequently incorporated provisions for vacated or terminated project sites into its offshore wind policy framework.

Following an offshore wind meeting on 2 July, Taiwan’s Energy Administration said that sites whose contracts were terminated would be included in the scope of expansion capacity, with the government finalising changes to the Phase 3 selection mechanism and administrative contracts.

The Ministry of Economic Affairs published the Phase 3 administrative contract framework on 23 July. The framework establishes separate administrative contracts for allocated and expansion projects and sets out the rights, obligations and liability arrangements applying to developers.  

“In addition to the original allocation of 3.6 GW, this round of selection will also include sites with terminated contracts in the expansion capacity scope. Through a transparent and open mechanism, developers with proven track records and contract fulfilment capabilities will be selected, and related work will proceed according to the established schedule, moving towards the goal of completing the selection by 2026, steadily promoting industry development, and gradually moving towards the 2050 net-zero transition target”, MOEA said on 23 July.

Foxwell Energy, an affiliate of Shinfox, is building the 300 MW Taipower Offshore Wind Project Phase II (TPC Changhua Phase II), after winning the tender from Taipower for the development of the wind farm in June 2020.

In June this year, Shinfox Energy was delisted from the Taiwan Stock Exchange after its net worth turned negative amid substantial financial losses. According to Taiwanese media, the losses include those incurred by its offshore wind engineering subsidiary Foxwell Energy.

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