Taipower: Offshore Wind Farm Phase 2 Penalty Amount to be Confirmed After Project Rescheduling

(Central News Agency, Taipei, July 8) Fuwei Energy, a subsidiary of Swancor Holding, which undertook Taipower's Phase 2 offshore wind power generation project, has incurred losses. Legislators are concerned about the project's progress. Taipower stated that wind turbine installation will continue after negotiations are completed; the penalty amount for breach of contract will be calculated only after the subsequent project is rescheduled and the actual overdue period is confirmed.

Fuwei Energy, a subsidiary of Swancor Holding, which undertook Taipower's Phase 2 offshore wind power generation project, has incurred losses, leading to its parent company Swancor's net worth turning negative and delisting. The public is concerned whether this will affect the progress of related projects. Taipower stated on June 16 that the key onshore and offshore core engineering works for Phase 2 of offshore wind power have been completed, with an overall progress of 90%. Among the 31 wind turbines, one has been installed, and the installation of the remaining 30 wind turbines is the final step.

The Economic Committee of the Legislative Yuan today invited the Ministry of Economic Affairs to report on "Guidance Strategies for Assisting Overseas Taiwanese Businesses in Responding to Geopolitical Changes and Regional Economic Integration" and "National Power Resource Supply and Demand Report," and to answer questions.

During questioning, KMT Legislator Yang Yu-hsiung expressed concern about the installation progress of the remaining 30 wind turbines for Taipower's Phase 2 offshore wind power project. In response, Taipower Chairman Tseng Wen-sheng pointed out that because the contract between Fuwei Energy and the wind turbine manufacturer has been terminated, Taipower is renegotiating with the wind turbine manufacturer according to the contract with Fuwei Energy. "There is no contract now, so there will be no installation," he said, indicating that no new wind turbines are currently being installed.

Yang Yu-hsiung further asked if the wind turbine installation could be completed this year. Tseng Wen-sheng replied that wind turbine installation will begin after negotiations are completed, stating, "Installation will begin this year." Minister of Economic Affairs Kung Ming-hsin added that negotiations must proceed in accordance with the law, and the current process is based on the contract. Since the original contract has been terminated, renegotiation is necessary.

In addition, Yang Yu-hsiung also inquired whether penalties have been imposed on the contractor due to the project delays. Tseng Wen-sheng stated that Taipower has notified Fuwei Energy that overdue penalties will be handled according to the contract, and the engineering fees and performance bonds are currently held by Taipower. However, Tseng Wen-sheng mentioned that the penalty amount cannot be determined yet and will require subsequent project rescheduling and confirmation of the actual overdue period to calculate the breach of contract amount.

KMT Legislator Lu Yu-ling expressed concern about the stagnation of the engineering project for Swancor's Youde wind farm and whether it can be connected to the grid by 2029, as some offshore wind power developers are interested in acquiring it. Kung Ming-hsin stated that he has not received relevant information and cannot comment on the matter, emphasizing that the government will continue to promote offshore wind power policies. (Editor: Yang Lan-hsuan) 1150708

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