Guaranteed Purchase Price and Flexible Grid Connection Mechanism Launched Simultaneously
The Bureau of Energy under the Ministry of Economic Affairs announced the administrative contract template for the third phase of offshore wind power block development on July 23. Key provisions include a guaranteed purchase price of NT$2.29 per kilowatt-hour and a one-year flexible grid connection mechanism. The Bureau stated that the contract revisions aim to balance developers' investment risks with the government’s energy policy goals, ensuring the smooth progression of the third-phase selection process, with a target to complete the allocation of 3.6 GW by 2026.
The third-phase selection will incorporate previously terminated wind farm sites as expanded capacity, maintaining a total allocation of 3.6 GW. Successful bidders must sign separate administrative contracts for the original and expanded wind farms, each bearing independent compliance responsibilities. However, the performance bond for the original wind farm may serve as collateral for the expanded site, with an upper limit equivalent to the performance bond amount corresponding to the expanded capacity. The Bureau emphasized that this design simplifies developers' financing processes while ensuring the independence and transparency of wind farm management.
Strengthened ESG and Energy Resilience Requirements with Strict Penalty Mechanisms
The new contract explicitly requires developers to fulfill commitments related to ESG (Environmental, Social, and Governance) and energy resilience. Developers must submit specific implementation plans within six months of securing financing or completing grid connection, along with regular progress reports. The Bureau will conduct two-phase audits—upon grid connection and five years post-connection—to ensure all commitments are met on schedule.