From Fixed to Floating: Why Taiwan Must Act Now to Capture the Deepwater Wind Opportunity

(Photo: Kincardine floating offshore wind project 50 MW)

Taiwan is at a defining juncture in its energy transition. The nation's electricity supply system is ready and gearing up for a new, forward-looking strategy. The phasing out of nuclear energy, while not creating immediate new demand, is fundamentally shifting the focus of how Taiwan will secure its energy future. This moment is not about simply replacing old capacity; it's about a generational opportunity to fortify Taiwan's energy security, attract investment and maintain its global leadership in the clean energy race.

In this evolving landscape, floating offshore wind (FOW) is not merely a supplementary option; it is Taiwan's next strategic frontier. As a global growth story, floating wind is gaining unprecedented momentum - and Taiwan has the chance to be a leader, not a follower. By seizing this moment, policymakers can consolidate Taiwan's hard-won leadership in the offshore wind industry and unlock a new era of economic and environmental prosperity.

Future of energy-mix with floating wind

For Taiwan's energy supply system to continue its diversification, it will arguably will lean on two key sources for energy security and industrial competitiveness: imported natural gas (for baseload power) and locally available renewables - dominated by offshore wind - to safeguard energy security, investment attraction and industrial competitiveness.

Floating wind is the key to unlocking Taiwan's deep-water potential. With over 10GW feasible out of 90 GW of total potential, FOW is a viable and necessary pathway to deliver on the nation's time-bound target of 18.4 GW of offshore wind capacity by 2035, as set forth in the third meeting of the Presidential Office's National Climate Change Committee (總統府國家氣候變遷對策委員會第 3 次會議, 2025.01.23). It is also an indispensable tool for achieving the nation's net-zero target by 2050.

The urgency for action is undeniable. Taiwan's nearshore offshore wind sites(where fixed-bottom turbines can be installed), are rapidly nearing saturation. Many of these sites are already constrained or contested by other maritime users, including fishing communities and shipping lanes. Floating wind provides an optimal solution to this challenge by opening access to deeper, uncontested waters. This expansion of available space eases conflicts and provides greater opportunities for co-existence. When properly designed and sited, floating windfarms have the future potential to create artificial reef effects, enhancing marine biodiversity and fostering more positive, long-term relationships with coastal communities.

The public endorsement of floating wind by Minister Kung Ming-hsin (龔明鑫), of the Ministry of Economic Affairs (MoEA) earlier last month was a significant step. It signaled a clear vision. However, for that vision to be realized, policy must follow. The immediate need is for the government to announce clear, bankable incentives, along with a transparent pre-commercial project selection guideline and a future roadmap. This will send an immediate and powerful signal to investors and developers that Taiwan is not just considering FOW - it is exceptionally serious about scaling it.

Building before scaling: the importance of steppingstone projects

Floating and fixed-bottom offshore wind share many core similarities. They both utilize similar turbine technologies, offshore cabling, and substations; as well as relying comparable planning, installation and maintenance processes. The fundamental difference lies in their foundations: fixed-bottom structures are anchored directly to the seabed, while floating turbines are placed on moored platforms, making them uniquely suited for deeper waters.

This is where Taiwan can leverage its existing industrial strengths. The nation's established marine engineering and steel fabrication industries are natural anchors for a robust FOW supply chain. Furthermore, floating wind can draw valuable lessons and supply chain knowledge from the oil and gas industry, which has decades of experience working in deepwater environments. The technological parallels are numerous, from modular design and installation considerations to the use of moorings, anchors and chains that require regular operation and maintenance. Taiwan can shorten the learning curve, localize critical skills, and adapt proven practices to accelerate its floating wind development.

The success of demonstration and pre-commercial projects around the world has already proven that FOW is buildable and bankable. In the UK, a series of successful demonstration projects has pioneered FOW through its dual-track auction system, which separates fixed-bottom and floating projects. This dedicated approach allows FOW to be deployed on its own terms, fostering innovation and building investor confidence. The Green Volt project, a 560MW floating windfarm that secured a Contract for Difference (CfD) in the 2024 AR6 auction, is a testament to this momentum. With the AR07 round now live, the UK continues to demonstrate that a separate track for floating wind is the key to unlocking cost reductions.

South Korea is also moving fast. In 2024, Equinor's 750MW Firefly project became the first floating windfarm to secure capacity through a dedicated auction. France has already awarded two 250MW of floating tenders in its sixth auction (AO6). Sweden is lining up deep Baltic sites. These countries are not debating if floating will happen, they are competing to lead.

Taiwan could follow this proven model. In a highly commendable first step, the Ministry of Economic Affairs has preliminarily announced plans to administer 2-3 pre-commercial projects by 2030. These steppingstone projects are essential to test foundations, moorings, port logistics, supply chains and permitting processes in real-world conditions. They are not mere "pilot" projects; they are the crucial launchpads for a future gigawatt-scale rollout. It's now time to put this plan into action.

"Feedback from supply chain partners and financial institutions has been encouragingly positive, confirming that a project size of 6-12 units, or approximately 180MW, strikes the right balance. This scale is large enough to make development expenses worthwhile, yet manageable enough to mitigate risks and ensure successful execution", explains Sophorn Chea, Flotation Energy's Taiwan project manager. These projects will secure firm commitments from the supply chain, facilitate workforce training and drive necessary infrastructure investments. Crucially, they will provide lenders and insurers with the proof they need to underwrite larger, full-scale projects by the early 2030s, he added.

The cost reduction pathway

Capital expenditure (CapEx) can be cited as a constraint on the accelerating deployment of pre-commercial and full commercial-scale projects, however there is much data to show that the Levelized Cost of Electricity (LCoE) for FOW is already following a cost reduction curve as delivered by bottom-fixed offshore wind over recent years.

While affordability electricity supply often is the important policy decision, early investment is precisely what drives down the costs. A decade ago, bottom-fixed offshore wind in the UK cost £150–170/MWh. Today, thanks to early scaling and stable policy, prices have fallen to approx. £70/MWh. The UK's 2024 AR6 auction awarded the first commercial scale FLOW project (Green Volt) a Contract for Different (CfD, 2012 strike price) at £139.9/MWh - nearly half the price of earlier pilot projects. With scale, innovation and reduced capital costs, prices should continue to fall.

Furthermore, as FOW adoption grows internationally, proof points for lenders and financial markets become more numerous. Project bankability is of course complex; however, floating platforms and associated systems have been deployed for decades in the oil and gas sector, and many billion-dollar fixed-bottom projects have reached financial close with significant advancements with technology such as new turbine models, predictive analytics and remote monitoring activities.

Studies conducted by ORE Catapult indicate the biggest drivers of cost reduction will be: economics of scale, technical innovation (mooring, cabling, dynamic cables models) and risk mitigation in capital costs. While these require concerted government-industry collaboration, the evidence is that once projects move, cost curves begin to bend downward significantly. This is why floating offshore wind holds such promise in Asian energy markets.

Already, Korea's 750MW Bandibuli (Firefly) project is moving forward, and in June 2025 Japan passed legislation to unlock floating deployment across its 1.7 million-square-mile EEZ (Exclusive Economic Zone). Asia-Pacific is clearly on the move. Taiwan cannot afford to lag.

Figure: A waterfall chart to display FOW cost reduction through the lens of cost drivers. (Source: ORE Catapult 2024)

Floating wind values creation

Floating offshore wind (FLOW) is more than producing green electricity, it is about creating social value, securing political legitimacy and anchoring long-term economic opportunities.

One of FOW's advantages lies in its reduced seabed disturbance. Unlike fixed-bottom turbines, floating structures allow more flexible layouts and vessel access. This opens pathways for co-existence with Taiwan's fishing communities through joint planning, adaptive seasonal restrictions, compensation schemes, or collaborative monitoring. International experience shows that when fisheries' concerns are addressed transparently, resistance diminishes, and trust grows.

The economic dividend is equally significant. FOW projects demand new shipyard activities, advanced cable and mooring production, heavy-lift logistics, turbine maintenance and upgraded port facilities. Taiwan's established marine engineering and steel fabrication industries are natural anchors for this supply chain. Beyond domestic benefits, export potential is real: Taiwanese firms could become key suppliers to the fast-growing floating wind markets across Asia Pacific.

Leadership is timing - and Taiwan's time is now

Taiwan's strategy with bottom-fixed wind was to follow global trends, adopting proven models and lowering costs before deployment. While that approach worked for fixed projects, floating wind is now being developed at a more rapid pace; following the same process could risk locking Taiwan into delays and missed opportunity, as the demand for green electricity continues to soar steadily. If Taiwan fails to act now, it could face higher costs and missed opportunities later.

Time is of the essence and with current global permitting and investment lead-times being measured in years, Taiwan must act now to secure its place as floating offshore wind first mover.

For Taiwan, success in FOW policy would build on its reputation as a regional pioneer, ensuring it continues to evolve and lead. FOW is not a side project but the next frontier, with success defined by having 2–3 pre-commercial projects in the water by 2030/31, a functioning local supply chain and a clear pathway to gigawatt-scale deployment by the 2030s. Achieving these milestones would deliver a more resilient energy mix, position itself to capture multi-billion-dollar annual export revenues by 2040, given that global floating offshore wind is forecast to exceed USD 130 billion in market value by the mid-2030s with Asia-Pacific expected to account for a major share^[1][2][3].

Floating wind is no longer about "if" but "when"; and for Taiwan to capture its full potential, the answer must be "now." The same bold leadership that delivered Taiwan's first offshore wind success is needed again, this time to unlock domestic growth, attract investment and cement Taiwan's position as a regional leader in the next frontier of clean energy.

[1] Precedence Research (2024). Floating Offshore Wind Market Size, Share, Growth 2024–2035. Report projects global market value surpassing USD 130 billion by 2035.
[2] Global Wind Energy Council (GWEC, 2024). Global Offshore Wind Report 2024. Identifies Asia-Pacific as the fastest-growing floating offshore wind market, led by Korea, Japan, Taiwan, and emerging opportunities in Australia and the Philippines.
[3] ORE Catapult (2023). Floating Offshore Wind: Cost Reduction Pathways. Highlights supply chain localization and exports as key drivers of long-term value creation.