Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 262
262
Taiwan
for the Phase III-1 Projects. In addition, the
AC for the Phase III-1 Projects incorporates
quite detailed provisions governing the
penalties for the project company’s failure
to perform its localization obligations (more
elaborated on in section 7.1 below).
Moreover, the MOEA is entitled to terminate
or rescind the AC in case the performance
bond has been deducted to zero.
4.3 Examples of actual and future tariffs
The FiT applicable to the Phase II Selection
Projects in the recent years is as follow:
FiT (NTD per kWh)
FiT Base
2023
2022
2021
2020
2019
Fixed FiT for 20 years
4.5085
4.5024
4.6568
5.0946
5.5160
For the first 10 years
5.1438
5.1356
5.3064
5.8015
6.2795
For the last 10 years
3.4026
3.4001
3.5206
3.8227
4.1422
Two-phase FiT For
the last 10 years
OWF developers have the option for a fixed
20-year electricity tariff or a step-down rate
with a higher tariff for the first 10 years and a
lower tariff for the second 10 years.
In addition, for FiT applicable to the Phase
II Selection Projects, the MOEA set down
tiered production caps on the FiT of the
applicable year which are summarised as
follows:
(a) 100% of FiT for production below 4,200
annual full-load hours;
(b) 75% of the fixed FiT for production from
4,200 to 4,500 annual full-load hours;
and
(c) 50% of the fixed FiT for production above 4,500 annual full-load hours.
The FiT variation in recent years shows
that the FiT for OWF projects continues to
decrease. To our understanding, such downward trend is due to reasons such as the
advance of technologies and the influence
of a lower bidding price. Also, another reason was reported to be the public’s concern
that the FiT was set too high that the developers receive undue profits.
With respect to price bidding in Phase III of
the Program, pursuant to the Zonal Allocation Directions, the bidding price for the
Phase III-1 Projects is capped at NT$2.49/
kWh for the projects to be connected to
the grid in 2026 to 2027. The other sub-phases are capped at the weighted average of
the bidding prices and the capacities of the
winning projects of the previous sub-phase.
The bidding price floor is NT$0/kWh4 .
4 According to a news report, seven out of ten of the developers who secured capacity in the auction for the Phase III-1 Projects submitted zero-subsidy
bids, with the other three bidding projects close to zero. Please refer to the following website. https://www.rivieramm.com/news-content-hub/news-content-hub/a-policy-makers-dream-taiwans-government-get-zero-subsidy-bids-and-more-local-content-74286
