Boost to sputtering Taiwan wind as Vestas firms deal for biggest turbines

Danish turbine OEM Vestas confirmed Copenhagen Infrastructure Partners (CIP)’s order for 33 of its flagship V236-15MW turbines for the Taiwan-based 495MW Fengmiao 1 project, the first in the island’s zero-subsidy Round 3 to advance to financial close.

The confirmation is a milestone for Taiwan’s struggling offshore wind industry that has largely failed to advance some 5GW of project capacity awarded in its zero-subsidy Round 3.

"This project marks the start of construction for Taiwan’s first Round 3 offshore wind project and reinforces our commitment to delivering innovative clean energy solutions and supporting Taiwan’s ambitious renewable energy goals,” said Purvin Patel, president of Vestas Asia Pacific.

This is the third Taiwan-based, CIP-owned project that features Vestas’ turbines, and the first for the 15MW model that's the largest in its range.

“This milestone reflects our ambition to lead with innovation and set new benchmarks in performance, reliability, and sustainability,” said Mark Wainwright, Fengmiao I project CEO.

Construction of Fengmiao I is scheduled to be completed by the end of 2027.

CIP announced financial close on the project earlier this month, a significant moment for Taiwan’s offshore sector that has struggled despite lofty goals.

The island off the coast of China’s Fujian province boasts some 3GW of operating capacity and another 2GW in construction towards its 5GW by 2025 goal.

This capacity was either supported through national subsidies or allowed to source components on the global market, enabling for cost-effective buildout.

Its zero-subsidy Round 3 for 10GW – downgraded from the original 15GW – has struggled to gain traction due to costly localisation requirements.

Taiwan had required that some two-thirds of components be manufactured on the island, despite the lack of scale and manufacturing capacity.

The requirements caused costs to spiral to an estimated $190/MWh, among the steepest in the world, deterring corporate offtakers that were expected to form the customer base.

Slow progress

Ten projects totalling 5GW awards have been awarded in two tenders – Rounds 3.1 and 3.2 – but Fengmiao 1 is the first and so far, only one to reach financial close and enter construction.

Last July Vestas confirmed that it would not upgrade its Taiwanese blade plant for its 15MW turbine, reflecting market uncertainty on the island.

Last summer the European Union (EU) filed a complaint against Taiwan in the World Trade Organisation, claiming its local content requirements amounted to unfair trade barriers.

The two sides reached an agreement in November to introduce greater flexibility into offshore wind procurement, and Taiwan agreed to suspend localisation requirements in future phases of its Round 3, according to the EU.