In a significant milestone for Taiwan's renewable energy sector, the Zhong Neng Offshore Wind Farm has completed the installation of all 31 wind turbines, marking a new chapter in the country's green energy transition. The 300 MW project, a joint venture between China Steel Corporation (CSC) and Copenhagen Infrastructure Partners (CIP), is set to begin full operations by the end of 2024, ahead of its initial schedule.
Shyi-Chin Wang, Chairman of Zhong Neng and CSC, praised the collaboration with CIP, highlighting how the project overcame numerous challenges, including the global pandemic, to finish early.
China Steel, a leading force behind the project, is now reassessing its role in future wind developments. According to Wang, the company plans to shift from leading offshore wind projects to taking a minority stake in future developments. This strategic move will allow CSC to concentrate on its core steel business while still securing green power for its operations, which is critical for its 2050 net-zero emissions goals.
The Zhong Neng project also brings attention to the ongoing debate over local content requirements in Taiwan's offshore wind sector. With the European Union challenging Taiwan's localization policies at the World Trade Organization, industry leaders are calling for more flexibility. Wang advocated for a "survival of the fittest" approach to the local supply chain, suggesting that selective importation of components could help reduce costs and enhance competitiveness.
CIP, a key partner in Zhong Neng's development, has solidified its position in Taiwan's offshore wind sector. Marina Hsu, Regional Managing Director of CIP, defended the localization efforts, stating that Zhong Neng boasts the highest local content rate among Taiwan's offshore wind projects.
Following the successful completion of the Changfang-Xidao projects, Zhong Neng is CIP's second completed offshore wind farm in Taiwan. As the country aims to generate 20% of its electricity from renewable sources by 2025, the Zhong Neng Offshore Wind Farm's completion represents a crucial step forward. The project is expected to generate over 1.1 billion kWh annually, powering approximately 300,000 Taiwanese households and reducing carbon emissions by about 550,000 tons per year.
CIP is now focusing on financing the first phase of the Fengmiao project, a 500 MW offshore wind farm that will be Taiwan's first to secure corporate power purchase agreements with major industries, including semiconductors and telecommunications. This project underscores Taiwan's growing importance as a hub for renewable energy in Asia.
While celebrating this achievement, the industry faces new questions about balancing the development of a domestic supply chain with maintaining cost competitiveness in the global market. As companies like CSC recalibrate their strategies, Taiwan's offshore wind sector is entering a new phase, with stakeholders seeking a sustainable path forward in the island's energy transition.
