The progression of the Taiwanese offshore wind market seems to slow down as large developers pull out of Taiwanese projects.
The Taiwanese offshore wind market is going through a rough patch where projects under construction have met challenges, a spike in inflation has increased costs, and it is increasingly difficult to secure loans for projects. Developers are now choosing to not continue developing projects.
Ørsted in September 2022 said it would not submit bids for the last auction round in Taiwan which it felt were not financially viable. Although still officially unconfirmed, it now it looks like JERA has also chosen to exit the Taiwanese offshore wind market. JERA is looking to diversify its risks, seeking mature markets to develop offshore wind. Although both companies have developed projects in the country, that developers like JERA and Ørsted are pulling out it is evident that project execution has been difficult in Taiwan. The global market is expanding fast as more countries are announcing ambitions to develop offshore wind, potentially leading developers to change their strategical approach and diversify the location of their operations.