Taiya Renewable Energy: Empowering Taiwan's Offshore Frontiers

As the only offshore wind energy developer in Taiwan solely funded by local capital, Taiya Renewable Energy Corporation (hereafter referred to as "TRE" ) is committed to establishing a strong foothold in Taiwan. The company continues to drive the offshore wind energy business, gradually building on its experience and competitiveness. All of this serves as a foundation for future expansion into the Asia-Pacific market.

Richard Liu, Board of Director of Asia Renewable Energy

By Xin-En Wu, Mei-Hsu Shih

　　As the only offshore wind energy developer in Taiwan solely funded by local capital, Taiya Renewable Energy (hereafter referred to as "TRE") is committed to establishing a strong foothold in Taiwan. The company continues to drive the offshore wind energy business, gradually building on its experience and competitiveness. All of this serves as a foundation for future expansion into the Asia-Pacific market.

　　TRE has outlined three major objectives: First, to sign administration contracts for the initial phase of zonal development projects, and to engage in subsequent construction and collaborations with suppliers. Second, to participate in the 3.2 tender, currently under environmental assessment and review. Third, to enter the bidding process for a floating wind farm demonstration project.

Deep Roots in Taiwan: A Locally Invested and Connected Enterprise

　　"From the very beginning, Taiya focused on projects in Taiwan. After all, Taiwan is our home ground. Only when we are competitive here can we venture internationally. Therefore, establishing our capabilities in Taiwan is our primary objective," explains Richard Liu, Board of Director of Asia Renewable Energy, the mother company of TRE.

　　So, what sets TRE apart from other developers? Liu elaborates, "Foreign developers mainly approach this from an investment perspective, assessing projects based on their rate of return. If better opportunities present themselves abroad, they might divert their investments elsewhere. In contrast, Taiya's main market is in Taiwan—as our name 'Taiya' suggests, we focus on Taiwan and the Asia-Pacific region."

　　"Taiya strictly adheres to Taiwanese laws and is a collaboration funded entirely by the people of Taiwan. This makes us unique as the only local developer in Taiwan!" emphasizes Liu.

　　Being a local developer gives TRE unique advantages. The company has a deep understanding of the government's energy policies and planning, and can adapt swiftly to changes. Furthermore, due to the national policies emphasizing localization and domestic production, TRE enjoys a certain edge in communicating and cooperating closely with Taiwanese supply chain manufacturers.

Capital Market Entry and Public Confidence

　　Additionally, TRE is slated to become the first developer in Taiwan to enter the capital markets. The general public has always harbored some skepticism towards the offshore wind energy industry, particularly concerning its financial stability and funding aspects. To instill confidence in offshore wind development, Liu believes that participation from domestic banks and the accumulation of long-term stable funds are essential.

　　"In terms of funding, many foreign companies primarily rely on overseas banks. However, recent spikes in dollar interest rates have exerted some pressure on foreign capital. For us, being a local developer in Taiwan, we have extensive dealings with domestic banks. Naturally, our focus will be on involving more local banks in the development of the offshore wind energy industry," he states.

　　Another critical aspect is leveraging the capital markets to amass long-term, stable funding for future projects. Liu adds, "As a local enterprise in Taiwan, it is our duty to stimulate the capital markets, which includes both the stock and bond markets. For example, Orsted has issued green bonds in Taiwan; TRE also plans to enter the bond market."

Significant Discrepancy in Green Energy Supply and Demand

｜Corporate Power Purchase Agreements Show Rising Trends

　　In response to global trends toward net-zero carbon emissions, the demand for green energy is surging. Corporate Power Purchase Agreements (CPPAs) are increasingly becoming the focus of many industries. Regarding concerns about high CPPA prices in Taiwan, Liu urges against overreaction. "The current price of green energy in Taiwan falls between 4 and 4.5 TWD, which is relatively low compared to other countries. This includes the green energy produced by offshore wind farms."

　　Liu candidly admits that due to a significant supply-demand gap, CPPA prices in Taiwan are likely to rise in the future. "According to government estimates, long-term electricity prices are expected to grow at an annual rate of about 2.5% until 2050. The primary sources of green energy in Taiwan are solar power and wind energy. For a project to generate electricity on a large scale, offshore wind energy remains the main option. Besides the continued growth in electricity consumption, many international corporations are increasingly requiring their downstream suppliers to achieve net-zero carbon emissions by 2030 or 2050. Add to this the carbon border tax implemented by the European Union this October, becoming official in 2026, and it’s evident that the industry faces pressing needs."

In terms of funding, many foreign companies primarily rely on overseas banks. However, recent spikes in dollar interest rates have exerted some pressure on foreign capital. For us, being a local developer in Taiwan, we have extensive dealings with domestic banks. Naturally, our focus will be on involving more local banks in the development of the offshore wind energy industry.

 

Financing Solutions and Collaboration

　　Liu further points out that, for most enterprises, electricity consumption accounts for the majority of their carbon emissions, specifically under Scope 2. "If we can address the Scope 2 emissions through green energy, we can accelerate the achievement of net-zero carbon goals," he explains.

　　The demand for green energy from enterprises is robust, but domestic supply still falls short. Given the limited supply but large demand, Liu anticipates that the price of green energy will continue to trend upwards, which he considers a reasonable market trajectory.

　　Additionally, despite strong market demand for green energy, many companies lack the necessary financial guarantees required for wind farm projects. How can this challenge be mitigated? Liu offers a solution, suggesting a two-pronged approach. Firstly, it involves government assistance in establishing a guarantee mechanism, and the government is currently actively facilitating the formation of this guarantee mechanism. It is expected to assist various green energy consumers in Taiwan, including those in the electronics and petrochemical sectors, in signing CPPAs with offshore wind projects within the current year.

　　"Additionally, from a banking perspective, flexibility could be key," elaborates Liu. "Domestically, the majority of enterprises are SMEs, which are also the primary recipients of bank loans. Considering the current landscape, large multinational corporations seldom rely on bank financing in Taiwan." He suggests, "Could we collaboratively explore a mechanism—perhaps pooling resources—to facilitate financing? The underlying rationale aims for a tripartite win: fulfilling corporate green energy requirements, ensuring profitability for banks, and securing necessary capital for wind farm developers."

Boosted by Net-Zero Targets, Taiwan's Offshore Wind Sector Shows Promise

　　Sustainable industrial growth is not just an industry aspiration; it's a national imperative. However, public misconceptions due to a lack of comprehensive information can lead to misconceptions about the industry. At the same time, some wind farm developers have exited the Taiwanese market, “ Even though we can still observe that many new entrants have arrived. Those leaving may have better opportunities elsewhere due to higher electricity prices and lower construction costs. Other considerations include responsibilities, so some stay in their own countries," says Liu.

　　The exigency of climate change has made reducing carbon emissions a global mission. Countries and corporations worldwide are setting ambitious net-zero goals to safeguard both ecological and human health.

　　"Numerous countries have set 2050 as their net-zero target year. President Ing-Wen Tsai has also committed Taiwan to this global initiative. The National Development Council has outlined a clear roadmap, with electrical energy—particularly wind energy—as a focal point. The Energy Bureau has plans for 15GW of offshore wind energy production by 2035, scaling up to 40-45GW by 2050," Liu elaborates.

　　He believes that such policy clarity is instrumental for strategic planning and resource allocation within the industry. "Our firm, TRE, is keenly interested in participating in this sector, encouraged by the government's clear policy direction. We anticipate a growing number of suppliers investing in this chain."

　　"Clear government policies and industry support mechanisms significantly benefit emerging sectors," notes Liu. "This has reduced the time-to-market for many projects and we're beginning to see positive financial outcomes. This bodes well for Taiwan's offshore wind energy sector, fulfilling the dual objectives of green energy supply and job creation."

　　"In the offshore wind energy market, despite some exits, there has been a net influx of participants. Our evaluation indicates that the investment returns in this sector exceed those in other industries, making the outlook promising," states Liu.