MOEA Holds Zonal Development Selection Briefing, Aims to Complete Allocation by Year-End
The Ministry of Economic Affairs (MOEA) held another briefing today (February 26) on the draft selection mechanism for the Phase 3 Zonal Development of Offshore Wind Power, presenting the revised framework to stakeholders. The draft outlines the review focus and scoring principles for various performance capability criteria.
Under the revised proposal, the incentive mechanism will consolidate three elements, including early completion and grid connection, local industrial and economic benefits, and energy resilience. Projects are eligible to receive up to five years of extended power sales period as an incentive. In addition, the purchase price for surplus green electricity will be set at NTD 2.29 per kWh, based on Taipower's average avoided cost.
The current round also introduces a capacity expansion mechanism, allowing selected wind farms to expand their allocated capacity by up to 50% of the originally awarded capacity, depending on their evaluation ranking.
The MOEA stated that the revised draft incorporates feedback received during the previous briefing. The objective is to further clarify the content of the draft selection mechanism so that developers can better evaluate the framework and prepare for the selection process. Stakeholders are invited to submit written comments to the Ministry by March 5, and the MOEA aims to formally announce the mechanism in the first quarter of 2026.
For the Round 3 of Zonal Development selection, developers will be evaluated based on their performance capabilities. The scoring criteria include developer track record (35 points), financial capability (30 points), and project execution capability (35 points). Within the project execution capability category, the assessment covers project implementation readiness (15 points), ESG planning (15 points), including local industrial and economic benefits, environmental sustainability, and corporate social responsibility, and energy resilience (5 points). The Energy Administration (EA) under the MOEA emphasized that developers must provide comprehensive explanations and planning regarding their track record, financial capability, and project execution capability, stressing that participation in the selection process goes beyond a purely paper-based evaluation.
The EA stated that, in addition to assessing developers' domestic and international track records, the evaluation criteria will also cover developers' past contract performance records. Scoring will consider the progress made in obtaining key approvals and documentation, such as the preparatory permit for the electricity enterprise establishment and underwater cultural heritage survey documents for the wind farm project.
Moreover, local industrial and economic benefits (10 points) and energy resilience (5 points) will be evaluated based on the wind farm capacity and the corresponding investment amounts. Taking a 500 MW wind farm as an example, a project may receive 5 points under the local industrial and economic benefits category if the committed amount reaches NTD 20 billion, and the full 10 points if it reaches NTD 30 billion. For the energy resilience category, 2 points may be awarded if the committed amount reaches NTD 1.6 billion, and the full 5 points if it reaches NTD 2.5 billion.
Additional criteria include environmental sustainability (3 points) and corporate social responsibility (2 points), which will be evaluated based on principles such as the adoption of recyclable blades, compliance with fisheries liaison guidelines, and the planning of social responsibility measures by developers and their supply chains. In essence, the mechanism emphasizes quality over quantity and aims to encourage capable teams with strong execution capabilities.
The EA further noted that, under the newly introduced incentive mechanism in this round, the items of early completion and grid connection, local industrial and economic benefits, and energy resilience will be combined for calculation. Wind farm projects may receive up to five years of extended power sales period as an incentive.
Another newly introduced capacity expansion mechanism will grant selected wind farms eligibility to expand their capacity based on their evaluation ranking. The expanded capacity may reach up to 50% of the originally allocated capacity, and such expansion must be completed and connected to the grid by the end of 2031.
Lastly, the EA stated that the total capacity of 3.6 GW allocated in this round will, in principle, be distributed based on existing available sea areas. The MOEA also expressed appreciation for the constructive suggestions provided by stakeholders regarding offshore wind development policies and the selection mechanism. Taking these inputs into account, the MOEA has refined and optimized the proposed mechanism.
The selection mechanism is expected to be formally announced in the first quarter of 2026, with the goal of completing the capacity allocation process by the end of 2026. Through stable and predictable policy planning, the government aims to create a favorable environment for green power development, attract continued international investment in Taiwan, and ensure the timely achievement of renewable energy policy targets.
Spokesperson for Energy Administration, Ministry of Economic Affairs: Deputy Director General, Chung-Hsien Chen
Phone Number: 02-2775-7770, 0919-998-339
Email:
[email protected]Business Contact: Director, Ju-Ming Cheng
Contact Phone Number: 02-2775-7778, 0952-279-720
Email Address:
[email protected]