8 Years of Offshore Wind Development in Taiwan: Localization Policy's Meaning Hinges on International Competitiveness

People seem to forget, and it appears that amidst discussions surrounding Taiwan's localization policy, there is a notable oversight regarding its fundamental objective: bolstering the nation's supply chain capabilities to compete on the global stage. However, the present state of the localization policy reflects a scenario dominated by either a single supplier (monopoly) or a limited number of suppliers (oligopoly) within each localized industrial sector (or item).

In mid-April, I seized the opportunity to visit Singapore for a Southeast Asian cross-regional forum and exhibition focused on energy and carbon reduction technologies. The forum drew participants from Malaysia, Singapore, the Philippines, India, Thailand, and Vietnam, representing industries spanning petroleum and natural gas, coal, hydrogen, energy storage, and electric vehicle applications. It is an honor to engage with foreign experts and leaders as a Taiwanese media member on Taiwan's energy transition and the development of offshore wind during the event.

It's somewhat proud that Taiwan's image abroad isn't just about semiconductors anymore. When energy comes up, the first thing that springs to mind now is offshore wind. This shift in perception was unimaginable just a few years ago. Taiwan took a bold leap with this decision, from administrative legislation to industrial supply, but considering the current global trends, it's the right path to take.

The tumultuous progress of Taiwan's offshore wind industry has reached the Zonal Development stage (commonly known as Phase 3) amid a buzz of activity. As an observer and reporter of this industry, I have interviewed and conversed with nearly a hundred stakeholders in the domestic and international renewable energy sector. This includes developers, supply chains, officials, diplomats, researchers, scholars, seasoned media professionals, and consultants who have long been immersed in the energy sector.

Taiwan's struggles developing renewable energy and offshore wind power industries are vividly evident under numerous pioneers. Even though many of these individuals have moved on from their original roles or shifted within the industry, they deserve our utmost respect. From demonstration projects and potential sites to zonal development, I believe many pioneers have shared their insights and learning experiences regarding Taiwan's industrial development in their respective areas of expertise. Upon reviewing these discourses, it's evident that critical industry discussions revolve around the controversy of "localization," touching upon aspects such as strategy, technology, finance, engineering, talent, and the socio-economic and ecological environment.

I penned a thesis on the issue of "localization obstacles (referred to Industrial Relevance Plan in Taiwan)" regarding offshore wind development and supply chain in the past, aiming to dive into Taiwan's predicament and how to tackle it. Back then, the industry was still feeling its way around the concept of local content and its potential ramifications. At that time, the foundation was laid on the premise of pioneering and innovative renewable energy industry in Taiwan. Reflecting on the industry's trajectory over these years, I believe the discourse among pioneers who have been involved for several years has shifted from mere development to the industry's "Existence & Sustainability." The enthusiasm once held by these familiar faces from the industry, as well as colleagues from institutions and officials, is gradually waning. Why has Taiwan's offshore wind industry experienced such a stark decline in less than 8 years? What has transpired in the realm of "sustainability" for Taiwan's offshore wind industry?