Taiwan's first and second offshore wind turbines were erected in 2016 and officially began commercial operation in 2017, costing a staggering NT$4 billion. Swancor Energy described this project as a "big gamble." Today, Formosa 1, the offshore wind farm, is nearing completion. With 22 turbines (including the two completed in the previous phase), the project cost NT$24 billion, a significant drop in construction costs, a testament to the difficult initial steps. The Ministry of Economic Affairs is promoting offshore wind power with a three-phase strategy: "demonstration first, potential second, and then block-level development." Using the demonstration wind farms as a vanguard, they aim to understand potential development obstacles and serve as stepping stones for later development. Of the three demonstration wind farms, only the offshore wind farm has begun construction and is nearing completion. The offshore wind farm is being developed in two phases. The first phase involved two 4MW turbines, totaling 8MW. Installation was completed in October 2016, and the project began commercial operation in April 2017. These two NT$4 billion turbines, known as "Gui Sang Sang," were installed. The second phase began construction in May of this year, with a total of 20 6MW wind turbines. Installation is expected to be completed by mid-October. The total cost of the entire wind farm (including Phases I and II) is NT$24 billion, significantly reducing costs. However, Swancor New Energy General Manager Lin Yongyao cautioned that this should not be directly interpreted as "20 billion yuan for 20 turbines" for the second phase. In addition to economies of scale, the geological survey and substations covering the entire 10 square kilometers of the wind farm were also conducted during Phase I, contributing to the higher costs. Another key feature of Phase II is the increase in turbine capacity from 4MW to 6MW, maintaining the same total installed capacity but reducing the number of turbines. Based on installed capacity, the 8MW capacity of Phase I translates to a cost of NT$500 million per MW. Based on the NT$24 billion cost for the entire wind farm, the average cost per MW is NT$187.5 million. Unlike Phase I, which was solely undertaken by Swancor New Energy, Phase II is jointly invested by Ørsted Energy (35%), JERA (32.5%), Macquarie Capital (25%), and Swancor (7.5%). Lin Yongyao admitted that these companies were invited to participate in a European trip in 2016. Before that, after searching through all the Taiwanese companies, "no one believed that offshore wind power could be built in Taiwan." Looking back, Lin Yongyao lamented that building two turbines first was the right decision. Many of the relevant laws and infrastructure were completely unclear at the outset. Lin gave the example of a wind turbine nacelle weighing 430 metric tons and a tower weighing 500 metric tons, far exceeding the capacity of typical docks. Prior to construction, over NT$60 million was spent on renovating Taichung Harbor. For example, piling takes only two hours, with a diameter of 6-8 meters and a length of 70 meters. However, positioning and adjusting the piles can take one or two days, with some taking as long as five or six days. Offshore wind power projects burn money every minute. Lin Yongyao explained that at peak construction times, over 35 vessels of various sizes were operating simultaneously, and the daily cost of the project exceeded NT$17 million. The first completed unit at the offshore wind farm began trial operation and generated electricity on September 5th. To date, all 20 underwater foundations have been completed, leaving only two turbines to be declared complete. The wind farm is estimated to generate 480 million kilowatt-hours of electricity annually, enough to power approximately 128,000 households. Vice Minister of Economic Affairs Tseng Wen-sheng visited the offshore wind farm under construction on the 5th, accompanied by Lin Yong-yao for a presentation. All installation is expected to be completed by October 12th, with grid connection in mid-November. The goal is to obtain an electricity license by the end of this year and begin full commercial operation. With the completion of the offshore wind farm, Taiwan has entered the wind farm construction phase. Construction will then begin next year on the Taipower Phase I demonstration project, the adjacent Haineng Wind Farm, and the WPD Dade Yuneng Wind Farm. Source: Environmental Information Center (2019/10/08)
