Renewable Energy in Taiwan

From a position of having a relatively low profile in the regional and international renewable energy community, Taiwan has fast become a focus of developers, investors and others as it seeks to pursue an ambitious agenda of rebalancing its energy mix away from largely imported fossil fuels and towards home grown wind, solar, hydro and other renewable energy sources.

The key driver of this is the government’s decision to phase out nuclear power (which currently accounts for approximately 10% of Taiwan’s installed generation capacity) as well as to reduce its reliance on imported coal.

Taiwan’s geographical characteristics and relatively friendly investment environment make it a particularly attractive target for inbound investment from foreign investors.

In particular, the recent award of 5.5GW of grid capacity to new offshore wind projects is expected to result in a high level of activity for this market in the coming years. The successful financing in June 2018 of the 128MW Formosa 1 project, Taiwan’s first utility-scale offshore wind farm, demonstrates the appetite of the local and international bank market to provide long term project finance for offshore wind projects in Taiwan.