Taiwan Plans 8% Cut in Offshore Wind Tariff

Taiwan is proposing to lower the feed-in tariff for offshore wind projects signing power purchase agreements (PPA) in 2021 by 8.5% compared with 2020 rates, according to a draft from the Ministry of Economic Affairs.

“The draft is now in the regulatory process and should be announced officially very soon,” an industry source said.

The proposed rate for projects signing 20-year PPAs in 2021 is NT$4656.8 (€135.6) a megawatt-hour (MWh), down from NT$5094.6/MWh in 2020.

Projects also have a “ladder” option of NT$5306.4/MWh for the first 10 years and NT$3520.6/MWh for the second 10 years, down from NT$5801.5/MWh and NT$3822.7/MWh in 2020.

The government lowered 2020 rates by around 8% compared with 2019.