Bureau of Energy, Ministry of Economic Affairs, held a hearing about offshore wind feed-in tariff on Wednesday. In response to the cut of offshore wind power feed-in tariff, developers expressed their opinions.
Offshore wind power developers stated that without the support of the feed-in Tariff, they are unable to reach the subsequent lower bidding price. In addition, canceling the low to high differential pricing model will limit the technological innovation of wind power Technology.
Local supply chain revealed that wind power developers are currently discussing the possibility of terminating the contracts.
Ørsted, a power company based in Denmark, pointed out that wind power industry is matured in Europe so the cost can be lowered. Developers have several years of experience in the development of wind farms and they can reach economies of scale. The supply chain is sophisticated as well.
In terms of situation in Taiwan, the wind farm is still in the early stage of development. Ørsted emphasizes that without the of 5.8/kWh, it is hard to reach the follow-up bidding .5 /kWh.
MHI Vesta, Northland Power Inc and YuShan Energy also express their opinions about cancelling differential pricing model. The above companies said the movement will limit the development of offshore wind technology and make technological innovation redundant. They highly doubt the new feed-in tariff system.
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