The 3.1 auction of developers is expected to complete the signing of administrative contracts by the end of June
The 3.1 auction of developers is expected to complete the signing of administrative contracts by the end of June
The 3.1 auction of developers is expected to complete the signing of administrative contracts by the end of June. It has been confirmed that the Da Tian wind farm will not sign the contract. Despite some uncertainties, the majority of the wind farms have gradually clarified their stance, leading to the finalization of the block development plan.
The Ministry of Economic Affairs (MOEA) originally planned to complete the signing of administrative contracts in mid-May. However, developers stated that they needed more time to negotiate with the supply chain and sign important contracts, such as power purchase agreements (PPAs), finalize the CPPA (Contract for the Purchase and Sale of Green Power) with the demand side, and complete the letter of intent for bank consortium financing, among other crucial processes. Therefore, the MOEA agreed to postpone it until the end of June. The developers' attitude towards signing the administrative contracts has been wavering, prompting the MOEA to issue a warning that failure to sign the administrative contracts would be seen as a negative situation for the wind farm development and would affect their bidding score for the next phase (Phase 3-2).
Currently, Phase 3-1 consists of seven wind farms from six developers, with a total capacity of 3 GW. Due to a smaller quota, the Da Tian wind farm could not generate profits and its capacity will be left for the next phase to handle. However, developers are still constantly complaining about the issues they are currently facing. These include unresolved matters such as the location of onshore substations and coordination with local governments, Taipower grid connection fees and additional capacity, rising development costs, and suppressed green energy selling prices. These factors make it quite challenging to secure the necessary funding. Developers are concerned that future development work will become even more difficult, especially with the upcoming auction process for Phase 3-2.
