Taipower moves toward partnership model in offshore wind development

台電在離岸風力發電開發中轉向合作模式

TAIPEI (Taiwan News) — Taiwan Power Co. is seeking to expand access to green energy while shifting its development strategy, CTEE reported Monday.

The state-owned utility no longer plans to develop offshore wind farms through sole ownership and turnkey contracting, in which a single contractor delivers a fully operational project, according to industry sources. Instead, Taipower is evaluating a model based on equity participation alongside private-sector partners.

Taipower has been expanding its renewable energy footprint, including offshore wind. However, such projects are highly complex, particularly because they rely on project financing structures.

As a state-owned enterprise, Taipower must comply with the Government Procurement Act, limiting its flexibility in responding to changing market conditions. These constraints have been underscored by a dispute in its Phase 2 offshore wind project.

The five-year contract was awarded to Foxwell Power Co. under a turnkey arrangement covering engineering, procurement, construction, and a five-year operations and maintenance agreement. Since construction began, project costs have increased significantly, leaving the contractor facing substantial losses.

Although the project is now 96% complete, disputes have emerged over discrepancies between actual costs and contract terms. The disagreement, involving more than NT$10 billion (US$314.5 million), is currently under mediation.

In response, Taipower is moving toward a co-investment model with private developers to share risks. The approach is also intended to improve its ability to respond to market volatility and unforeseen challenges while continuing to expand renewable energy capacity.

The company has already taken steps in this direction. It holds a 25% stake in the Formosa 4 offshore wind project, led by Synera Renewable Energy Group, while CPC Corp. holds 15%, giving the two state-owned firms a combined 40% stake.

Market sources said Taipower is also assessing a potential investment in Formosa 6, another Synera-led development. The utility is reportedly considering a stake of at least 25%, though it said the final investment size will depend on its financial position and overall operational outlook.