Offshore Wind Phase 3 Block Development Sets Floor Price at NT$2.29, Expands Capacity with 3.6GW Plus Reallocated Cancelled Sites

The Ministry of Economic Affairs has officially finalized the administrative contract model for Phase 3 of offshore wind power block development, setting a floor price of NT$2.29 per kWh. This procurement round not only allocates the originally planned 3.6GW but also incorporates previously canceled project sites into the expanded capacity, significantly boosting domestic development potential. To strengthen ESG planning and energy resilience obligations, if developers fail to submit implementation plans within six months of securing financing or grid interconnection, they will be liable for a penalty equal to 20% of the difference between committed and actual procurement or investment amounts—enhancing accountability while balancing developer risks.

The Ministry announced the Phase 3 block development administrative contract model today (23rd). To further expand domestic development capacity, selected developers will sequentially receive additional wind farm sites, each governed by a separate administrative contract. This ensures clear delineation of rights and responsibilities for each site, aiding developers in clarifying project accountability and better meeting large-scale financing needs. Both original and expanded sites qualify for extended power purchase duration incentives. However, since expanded capacity is granted based on existing performance capability, the Ministry maintains the original performance bond’s liability coverage for expanded site obligations, capped at the bond amount corresponding to the expanded capacity.

Regarding ESG planning and energy resilience obligations, the current contract fully clarifies audit mechanisms and breach liabilities. Developers must submit implementation plans within six months of securing financing or achieving grid interconnection and provide regular progress reports. The Ministry will conduct final audits upon grid interconnection and again five years thereafter. If developers fail to meet local industrial and economic benefit requirements, the Ministry may claim a penalty equal to 20% of the difference between committed and actual procurement or investment amounts. In cases of severe non-compliance—such as repeated delays without improvement—an additional 10% penalty on the investment shortfall may be imposed, ensuring fairness in the selection mechanism.

For the performance bond refund mechanism, a phased refund approach is adopted to align with the energy resilience audit timeline. After grid interconnection, the Ministry will retain 20% of the performance bond equivalent to the energy resilience commitment amount, releasing it fully only after the final audit is completed. Drawing from past practical experience with potential sites and block development, a one-year flexible grid connection extension is now introduced. Developers may apply for a one-year delay in final grid connection if they complete all turbine underwater foundations or achieve grid connection for at least 50% of total capacity.

To enable developers to more accurately assess and calculate development risks, the administrative contract includes a guaranteed floor price of NT$2.29 per kWh. The Ministry emphasizes that offshore wind power remains a core component of Taiwan’s energy transition. Beyond the planned 3.6GW allocation, the inclusion of previously canceled sites in the expanded capacity aims to select truly capable and experienced developers through a transparent and open mechanism, steadily advancing toward the 2050 net-zero transition vision according to schedule.