With its 600MW Changfang and Xidao as well as 300MW Zheng Neng offshore wind farms producing electricity and more than 6.3GW in the pipeline, Copenhagen Infrastructure Partners (CIP) is heavily invested in Taiwan’s renewable energy transformation. As Taiwan looks to achieve its ambitious net-zero emissions target by 2050, the global sustainable infrastructure investments leader advocates for changes in the offshore wind sector that will enable a viable increase in renewable energy capacity. 

“Taiwan has established itself as a leader in offshore wind development in Asia,” says Marina Hsu, managing director of CISC Taiwan, the service company owned by CIP-managed funds. “But with the rest of the world making strides in this area, we call on Taiwan to enhance its offshore wind policy to remain appealing to international investors. This could involve implementing policy modifications that reduce costs for new projects, creating a more efficient green trading market, and maintaining the competitiveness of the local industry.” 

One such measure is expediting the process of obtaining permits. Since offshore wind power is heavily financed by loans, it’s imperative for developers to start generating revenue for projects as soon as they start running. But before this can be done, permits and approvals from the government, such as the Electricity Business License (EBL), must be obtained.  

“In Taiwan, obtaining the EBL can take between six and twelve months, while in Europe it takes an average of three months,” says Hsu. “During the process, the wind farm is generating power, but we can’t get paid until we receive the EBL. Taiwan can learn from examples from Europe, which has a highly developed offshore wind market, and relax regulations to make it a more open and transparent place to invest.”  

To accommodate the growing volume of renewable energy projects, Taiwan also needs more development areas for offshore wind projects. Hsu notes that considerable progress was made when the government amended the Renewable Energy Development Act to allow developments outside the 12-nautical mile zone. However, grid improvements can be expensive and land-consuming, and Hsu says Taiwan could consider innovative measures to lower the cost of grid enhancement.  

One such measure is building artificial energy islands that transfer offshore wind or solar-generated electricity to other forms of energy, such as green hydrogen and green ammonia. Based on a platform for electricity generation from surrounding offshore wind farms, energy islands reduce the burden on the grid. CIP is a pioneer in this area and plans to build two energy islands dedicated to large-scale production of green hydrogen from offshore wind in the North Sea by 2030. 

“Next-generation technology like Power-to-X, which is using renewable electricity to create green hydrogen, green ammonia, and green methanol, would be a major step in enabling leading Taiwanese companies to achieve their green transition goals,” says Hsu.  

As Scope 1 emissions constitute up to 80% of total emissions from industry and transportation, Taiwan’s industry leaders and shipping giants require green fuels to comply with emission standards set by international bodies as well as stay competitive in the global supply chain. CIP has raised around NT$24 billion for its Energy Transition Fund, aiming to invest in next-generation renewable energy infrastructure, including industrial-scale Power-to-X projects.  

“To accommodate the need for green fuel, Taiwan needs to implement policy frameworks similar to the ‘1,000 wind turbine initiative’ launched by the Ministry of Economic Affairs, as well as relevant safety regulations and standards in place,” says Hsu. 

Besides offshore wind Power, CIP also recognizes the need for Taiwan to incorporate other renewable energy sources, including geothermal and solar power. To that end, the company is actively looking for investment opportunities in Taiwan.  

“We remain heavily committed to the Taiwan market and new technology that supports its net-zero initiatives,” says Hsu. “Working with government, the local industry, and other international developers, we believe we can accelerate Taiwan’s energy transition and help it create a sustainable power mix.”