Criteria for Uncontrollable Circumstances in Industrial Relevance Plan (Localization Requirement) Now Publicly Available Online

The Ministry of Economic Affairs (MOEA) has addressed concerns regarding industrial policy issues related to the development of Taiwan's offshore wind power sector. The ministry emphasized that the matter is currently under consultation with the European Union. In compliance with international free trade rules, the Industrial Development Administration (IDA) will continue to support the upgrading of Taiwanese industries to enhance their global competitiveness. Key policy considerations include adherence to World Trade Organization (WTO) international trade rules, the urgent need for green energy to meet domestic industries' export demands, compliance with existing regulations and contracts, and the sound development of local industries.

According to the MOEA, Taiwan's economy is export-driven, and international brands have increasingly stringent requirements for green energy (such as RE100 commitments), both in terms of timing and volume. To achieve the policy goal of having 40% of Taiwan's exported products powered by green energy by 2030, the supply of green energy must be strengthened, making the timely grid connection of offshore wind farms particularly crucial. Regarding the industrial policy direction for the third phase of offshore wind development, the MOEA, based on consultations between Taiwan and the EU and the assumption of the timely completion of domestic wind farms, offers the following clarifications on the rules for different stages:
1. R3.1 Stage (Phase 3.1): This stage does not fall under the scope of the Taiwan-EU consultations. The developers for R3.1 have already signed administrative contracts with the MOEA, which will be implemented in accordance with the law. The industrial policy remains unchanged, and it should continue to be executed as stipulated in the administrative contracts. In cases of force majeure or circumstances beyond the control of the developers, they may claim their rights through existing mechanisms.
2. R3.2 Stage (Phase 3.2): The public tender process for this stage has been completed, and the selection rules and industrial policy remain unchanged. However, if circumstances arise beyond the control of the developers, they may apply for changes to the industrial policy plan. The MOEA will handle such requests based on a "general principle with case-by-case review" approach. To ensure timely grid connection, more precise criteria for determining uncontrollable circumstances will be established, accelerating the review process for changes to the industrial policy plan.
3. R3.3 Future Stage (Phase 3.3): The industrial policy for this stage will take a more open approach. Through domestic capacity-building efforts, the aim is to enhance the capabilities of the local supply chain, ensuring that Taiwanese industries achieve international competitiveness in terms of capacity, quality, and pricing.

Key points regarding the "general principle with case-by-case review" for R3.2 are summarized as follows:
1. Examples of circumstances beyond the control of developers:
　 (1) Domestic products still fail to meet quality standards despite improvement efforts.
　 (2) Domestic products cannot meet the delivery schedule required for timely grid connection as announced in the tender results.
　 (3) Unreasonable delivery conditions for domestic products, including procurement prices.
2. Requirements and procedures for reviewing applications for changes to the industrial policy plan:
　 (1) The Energy Administration (EA), together with the IDA, will first confirm whether timely grid connection is achievable. For manufacturing-related changes, the EA will refer the case to the IDA to determine whether the circumstances are beyond the control of the developers and whether the proposed changes are reasonable. For engineering services, the EA will conduct the review.
　 (2) If necessary, developers and other relevant stakeholders will be invited to attend industry communication platform meetings to facilitate dialogue and clarify issues.
　 (3) Developers applying for changes must prepare specific documentation, including the original specifications of the project (such as specifications, delivery timelines, etc.) and concrete evidence supporting the requested changes. If the application is based on unreasonable delivery conditions for domestic products, relevant supporting documentation must be provided as per the above guidelines.

The MOEA noted that a detailed explanation of the criteria for determining uncontrollable circumstances has been published on the EA and IDA websites. The purpose of the industrial policy is to ensure national energy security and industrial resilience. In addition to ensuring the timely grid connection of offshore wind farms, the policy aims to support the long-term stable operation of wind farms, provide stable green energy for businesses, and enhance the competitiveness of Taiwan's exports. The MOEA will continue to work with developers and suppliers toward these goals.