Source: UDN

July 17, 2018

 

Offshore wind power generation costs have recently elicited disputes; "a seminar on offshore wind power generation and its reasonable costs" was held yesterday, with industry representatives, officials, and scholars meeting in one room for discussions. According to Lin Chuan-neng, director of the Energy Sources Bureau under  the Economics Ministry, offshore wind power generation is a high-tech, capital-intensive industry; the wholesale rate for this year is NT$5.8 per kWh, which in fact, is very close to the bidding results of recent years in the UK, and not especially high.

 

In the bidding system for offshore wind power generation, Northland Power Inc. won the tender with a super low price of NT$2.2 per kWh, shocking some competitors. Sean McDermott, general manager of Taiwan Northland Power, yesterday explained for the first time in person, saying that Northland submitted such a low bidding price because after the selected operators laid down the basic facilities in the selection process, the operators in the competitive bidding system could share the resources, not having to pay the same cost. Sean McDermott said that the designated areas for offshore wind power generation, Hai Long 2 A offshore wind farm secured the capacity of 300 MW through the selection system, while Hai Long 2 B secured 232 MW capacity through the competitive bidding system. Although the two designated areas belonged to different systems and different costs, they could still be regarded as "one ad hoc project." In the same way, Hai Long No. 3, which was under the competitive bidding system, could also share in procurement, manpower marshalling, ship mobilization and other sharing costs.

 

Lai Wen-hsiang, chairman of Century Wind Power Equipment, says that outside circles have criticized that offshore wind power generation all benefit foreign firms, but as early as 2013, the government developed three demonstration areas for wind power generation, with Taipower, Swancor, and Fuhai Wind Farm Corp. being qualified. The government gave excellent terms in credit extension and subsidies; however, "Taiwanese drag their feet” with some designated areas having collapsed.