Taiwan Renewable Energy Market
Taiwan plans to generate 20% of its energy from renewable energy by 2025, up from 5% in 2020. Overall policy calls for significantly less coal, more LNG, increased renewables and a “nuclear-free homeland”. U.S. export prospects exist in offshore wind and solar energy.
Between 2021 and 2025, Taiwan will add 5.7GW of already allocated offshore wind power to the grid. An additional 10GW of offshore wind will be added to the grid between 2026-2035, project specifications will be released in 2021. For solar energy, Taiwan will add 14.2 GW by 2025. Current unfinished wind and solar projects value approximately $82.9 billion, among the highest tallies in the Asia region. Source: Ministry of Economic Affairs (MOEA) data, and GM Taiwan estimates.
| Type of Energy | 2026-2035 Target Capacity (GW) |
Construction *Cost per GW ($ Billion) |
Estimated value ($ Billion) |
|---|---|---|---|
| Off-shore Wind | 10 | 6.3 | 63 |
Source: *Average Construction Costs, Industry Estimates
| Type of Energy | 2025 Target Capacity (GW) |
Construction Cost per GW ($ Billion) | Unfinished Capacity (GW) | Estimated value ($ Billion) |
|---|---|---|---|---|
| Solar Energy | 20 | 1.4 | 14.2 | 19.9 |
Source: *Average Construction Costs, Industry Estimates
Apart from a few high-profile demonstration projects, the development of wind and solar energy will largely be led by independent power producers (IPP). Taiwan Power Company (TPC), a state-owned enterprise, owns power transmission lines in Taiwan, and will be the sole recipient for the power produced by IPPs.
WIND ENERGY
The main components of an offshore wind turbine power plant are a wind turbine, a floating platform on which the turbine is based, the substation, and underwater cables. European firms, such as Siemens and MHI Vestas, have already won several major projects for wind turbines. For the platform base, Taiwan and Korean companies have been awarded contracts. U.S. firm GE Power and Taiwan companies have supplied substation equipment. Korean and Japanese companies have won undersea cable contracts.
Market Potential and key components (2026-2035):
- Wind turbines — $38.9 billion
- Floating Platforms (deep water / 40+ meters) — $10.4 billion
- Sub-stations (e.g. transformers, switch gears, and structures) — $5 billion
- Underwater Cables (to connect wind turbines to the grid on land; estimated length of cables is 4,000 kilometers) — $4 billion
Source: Independent Consultant and GM Taiwan
Note: Local content requirements may be as high as 60% but may not be strictly enforced.
SOLAR ENERGY
Taiwan announced plans in 2019 to install 20GW of Solar Energy by 2025. Only 5.8GW was installed as of Q12021. Solar power / Photovoltaic systems (PV) in Taiwan is divided into two groups: rooftop and ground-mounted systems. Of the 20GW planned, 8GW will be rooftop PV systems and 12GW will be ground-mounted ones.
An example of a successful business model for solar in Taiwan is Vena Energy, a renewable energy IPP owned by US-based Global Infrastructure Partners. Vena owns and operates five solar projects in Taiwan with a total capacity of 97.8 MW, and another 312.4 MW of solar plants under construction to be completed by the end of 2022.
The local supply chain for solar power equipment is mature and complete, and materials for most projects will be fully sourced in Taiwan. For construction, EPC, and equipment opportunities, U.S. industry and investors should partner with local industry to win contracts, as local industry is highly competitive.
For additional information contact the U.S. Commercial Service in Taiwan, Kenneth.Chen@trade.gov.