What caused Fuh Wei Energy's financial problems?

Global inflation and interest rate hikes due to the Russia-Ukraine war caused wind farm construction costs to skyrocket beyond expectations.

Will the Taipower Phase 2 project be cancelled?

No. The Minister of Economic Affairs stated that 90% of the project is complete and it will be finished.

What is Shin Wei Energy's future strategy?

For projects like the Youde Wind Farm, it plans to be a minority stakeholder (around 30%) rather than the lead developer.

Shin Wei Energy Asks Taipower to Take Over Wind Farm Construction; Minister Says It Will Be Completed

Published Jun 12, 2026 4:40 PM ・ Updated Jun 13, 2026 11:56 PM ・ 4 min read ・ Source: CNA (Central News Agency)

Fuh Wei Energy, a contractor for Taipower's offshore wind farm Phase 2 project, faces financial distress. Its parent company, Shin Wei Energy, hopes Taipower will take over the remaining construction. Minister of Economic Affairs J.W. Kung stated that regardless of the plan, the project will be completed, as 90% of the work is already done.

(Central News Agency, Reporter Xie Yixuan, Taipei, June 12) Fuh Wei Energy, which contracted Taipower's "Offshore Wind Power Phase 2 Project - Wind Farm Equipment Procurement and Installation," has fallen into severe financial difficulty due to cost overruns caused by inflation and interest rate hikes resulting from the Russia-Ukraine war. This has led to significant losses, causing its parent company, Shin Wei Energy, to have negative net worth and face delisting on June 23.

Shin Wei Energy Chairman Guo Tai-qiang previously stated in a media interview that he hopes for a mutual agreement to terminate the contract, with Taipower taking over the installation work from the turbine manufacturer to ensure the Phase 2 project is completed and operational. Fuh Wei would assist in transferring the turbine ownership and arranging for turbine installation vessels.

Minister of Economic Affairs J.W. Kung stated today after a meeting of the Economic and Industrial Development Advisory Committee that Taipower is still in discussions with Fuh Wei. Kung emphasized that regardless of the plan, the Taipower Phase 2 project will ultimately be completed, as 90% of the construction is finished and the turbines are already manufactured. The Ministry of Economic Affairs respects the final agreement between Taipower and Fuh Wei.

Regarding the future of the Youde Wind Farm, Guo Tai-qiang mentioned in a previous interview that they have been in talks with several companies, including Chunghwa Telecom, Taipower, Walsin Lihwa, and Century Iron and Steel. Some have expressed interest but are still evaluating. Shin Wei's stance is not to be the lead investor, aiming to hold around a 30% stake, and prefers other companies to take the lead.

Minister Kung stated that the winning bidder's wishes must be respected, but the winning bidder has not yet contacted the Ministry of Economic Affairs. Once the company contacts the ministry and presents its ideas, the ministry will discuss how to respond and will make a further announcement. (Editor: Pan Yijing) 1150612

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Source: CNA (Central News Agency)
Category: Taiwan

Shin Wei Energy Asks Taipower to Take Over Wind Farm Construction; Minister Says It Will Be Completed

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