With enormous corporate demand for renewable energy and regulation changes under President Tsai Ing-wen’s (蔡英文) administration, industry insiders say the market for corporate power purchase agreements (CPPAs) in Taiwan is primed for growth.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) in August announced it would buy all the electricity generated by Orsted Taiwan Ltd’s (沃旭能源) 920 megawatt (MW) wind farm off the coast of Changhua County for 20 years. That would be the largest CPPA in the world.
“There is a growing appetite for renewable CPPAs in Taiwan, driven by the liberalization of Taiwan’s renewable market and the government’s ambitious renewable energy agenda,” said Tiffany Huang (黃台芬), a partner with the international law firm Baker & McKenzie and head of its construction and power project practice groups in Taiwan.
Huang has advised on many major offshore wind projects, including the US$3 billion Changfang (彰芳) and Xidao (西島) offshore wind farm projects by Copenhagen Infrastructure Partners.
“We [Taiwan] have the largest offshore wind market outside of Europe, and this is because of government policy,” Huang said.
After Tsai took power in 2016, she made the development of renewable energy a key policy initiative, and her administration aims to make Taiwan a nuclear-free country by 2025, with 20 percent of its power supply derived from renewable sources, mainly solar and offshore wind.
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