TOWIA Supports Reasonable Electricity Price Adjustment for Taiwan Offshore Wind Enters Zero Subsidy

The Taiwan Offshore Wind Industry Association (TOWIA) responded to the recent announcement of Taipower's policy to raise residential and industrial electricity prices, stating that Taiwan's electricity prices have long failed to reflect actual costs. With international fuel prices rising recently, Taipower's finances have been heavily impacted. TOWIA supports reasonable electricity price adjustments, advocating for electricity users to moderately share the internal costs such as generation, transmission, and distribution as external costs like environmental impacts, aiding in the overall decarbonization process of industries and society.

In response to rumors suggesting that Taipower's electricity costs have surged due to its investment in green energy, TOWIA (Taiwan Offshore Wind Industry Association) earnestly highlights that the impact of offshore wind on Taiwan's electricity prices remains minimal. Upon completion of the first and second phases, wind farms subsidized through feed-in tariffs will collectively contribute less than 5% to the nation's total electricity generation. Moreover, Taiwan's offshore wind power sector has transitioned to a stage of zero government subsidies. Notably, potential sites identified for the second phase include wind farms with established power purchase agreements with private enterprises, wherein the pricing of green power is determined by commercial arrangements between buyers and sellers.

After all potential offshore wind farm sites in Taiwan are fully completed and connected to the grid by 2025, it is estimated that over NT$30 billion will be paid as Taipower strengthens the grid, facilitating the necessary infrastructure for Taiwan's energy transition. Additionally, the commercial model of offshore wind farms will shift towards green market trading without government subsidies. Moreover, efforts will continue to develop domestic basic grid infrastructure, local supply chains, talent cultivation, and tax incentives. TOWIA believes that the multifaceted contributions of offshore wind power to promoting Taiwan's energy transition, economic development, industrial innovation, and environmental protection should be acknowledged.

Data from the Risk Society and Policy Research Center of National Taiwan University's "2023 Net Zero Transition Public Opinion Survey" shows that over 80% of the population is willing to pay higher electricity prices to reduce future climate disaster losses. TOWIA supports domestic electricity prices reflecting current fuel and related costs, with electricity users sharing environmental impacts and carbon emissions costs, enhancing overall electricity efficiency and reducing carbon footprints, accelerating progress towards the net-zero transition goal.