The Danish firm Orsted has announced that it has suspended its part in Taiwan’s offshore wind power development. It said that it was re-evaluating its investment in the country.
Wang Hsin-chieh, Orsted’s Head of Corporate Communication for Taiwan, said that the company was not withdrawing from the Taiwan market, but that it was concerned about what it saw as an unstable investment environment, referring to changes in the feed-in tariff (FIT) rate.
Since 2016, Orsted has invested over $65 million in Taiwan, where it plans to build wind farms with 900 MW of total capacity in Changhua County, requiring a total investment of $5.34 billion. Wang said: “The company needs the support of a stable policy to ensure that the investment is carried out smoothly and that the relevant supply chain can take root in Taiwan.”
Wang said that Orsted has informed its supply chain that it has suspended the execution of ongoing contracts to install wind-power facilities off the western coast of Taiwan. The company said that it will renew price negotiations with the relevant businesses for those contracts that have not yet been carried out. Wang said that the decision was made as Orsted assesses whether or not to continue its investment into Taiwan.
The suspended contracts include construction of onshore substations with Taiwan Cogeneration Corporation, and underwater structures with China Steel Corporation and Century Iron and Steel Industrial Company.
Orsted is studying the feasibility of whether or not to withdraw its investment, based on whether or not the FIT is maintained at NT$5.8 per kWh, which it was offered before the Taiwan Ministry of Economic Affairs (MOEA) announced that the rate would be cut by 12 per cent to NT$5.1 for 2019.