The Overview of Taiwan Wind Power Industry Yule K. Wang Assistant Vice President ECO Energy Business Group TECO Electric & Machinery Co., Ltd. 1 Outline Sustainable Energy Use - Wind Power in Taiwan - Challenge in Taiwan Wind Power Industry and Localization - Policy Scheme - Localization and Challenge Conclusion © TECO Electric & Machinery Co., Ltd. All rights reserved. 2 Sustainable Energy Use - Wind Power in Taiwan - Challenge in Taiwan © TECO Electric & Machinery Co., Ltd. All rights reserved. 3 Wind Energy Resources The average of wind speed on Taiwan Strait: 5.2m/s Potential Capacity 1,600 MW (onshore wind farm) 3,200 MW (offshore wind farm) The depth of water in Taiwan Strait: <50m. © TECO Electric & Machinery Co., Ltd. All rights reserved. 4 Taiwan wind source and current status Taiwan has the best offshore wind resources in the world! © TECO Electric & Machinery Co., Ltd. All rights reserved. 5 Onshore Wind Resources Best Wind Area: “The Northwestern Coast” Full-load hours: “2600-3200 hr/year” Second-Best Wind Area: “The Southwestern Coast” Full-load hours: “2400-3000 hr/year” 4th Wind Area: “The South Coast” 3rd Wind Area: “The South Coast” Full-load hours: “ >2500 hr/year ” Full-load hours: “1800-2400 hr/year” © TECO Electric & Machinery Co., Ltd. All rights reserved. 6 Onshore Wind Resources Penghu Island Yearly average wind speed: 7.5~8m/s Capacity factory: 45%, (higher than 90% in high wind season) Submarine cable is the key for expansion 7 © TECO Electric & Machinery Co., Ltd. All rights reserved. 7 The Truth behind the “Green Effect” The Imported wind turbines break down from time to time because of the local environment --> high O&M cost , low availability Typhoon… Fall down… High Temperate & Humidity… Salt Injury… © TECO Electric & Machinery Co., Ltd. All rights reserved. Twist… 8 Sustainable Energy Use - Wind Power in Taiwan - Challenge in Taiwan © TECO Electric & Machinery Co., Ltd. All rights reserved. 9 About Taiwan Area: 36,193 km2 Population: 23,313,517 Population Density: 644 people/km2 GDP(PPP): $ 977 billion GDP(PPP)per capita: $41,581 © TECO Electric & Machinery Co., Ltd. All rights reserved. 10 The Challenge in Taiwan Per Capita Energy Consumption LOE Dependence on Imported Energy 100% 6000 4388 5000 4763 4928 80% 3505 4000 97.8% 97.7% 97.5% 97.5% 97.6% 1993 1998 2003 2008 2013 60% 2833 3000 40% 2000 20% 1000 0% 0 1993 1998 2003 2008 2013 With increasing demand of energy and high dependence on imported energy, we are finding ways for sustainable energy use. © TECO Electric & Machinery Co., Ltd. All rights reserved. 11 The Challenge in Taiwan CO2 Emissions per capita of Taiwan was No.1 in Asia. 2011 -- No.12 in Asia according to IEA Statistics © TECO Electric & Machinery Co., Ltd. All rights reserved. 12 Percentage of WIND is still LOW 4.26% Installed Power Capacity Pumped Hydro Power Oil-Fired 1.26% 35.74% 5.33% 7.83% 1.29% 0.23% Renewable Energy Nuclear Power LNG-Fired Coal-Fired 0.80% 7.65% 10.53% 32.92% Bureau of Energy, Ministry of Economic Affairs (July, 2014) We have various power plants. Fossil fuels 76.31%, Nuclear 10.53%, Pumped Hydro Power 5.33% and Renewable energy 7.83%. Renewable energy accounts for 7.83% which composes of 5 resources. Solar PV and wind power accounts for 0.8%(392MW) and 1.26%(614MW). The ratio of power generating from wind <1% © TECO Electric & Machinery Co., Ltd. All rights reserved. 13 Wind Power Industry and Localization - Policy Scheme - Localization and Challenge © TECO Electric & Machinery Co., Ltd. All rights reserved. 14 Strategic Goals and Policy Scheme (1/6) ”Thousand Wind Turbines Office” Goal: (gradually replace nuclear power with green energy) Onshore Accum. MW (units) Offshore Accum. MW (units) MW (units) 2011 2015 2020 2025 2030 563 (288) 866 (350) 1200 (450) 1200 (450) 1200 (450) 0 >12 (4 demo) 320 (64) 1800 (360) 3000 (600) 563 (288) 881 (354) 1520 (514) 3000 (810) 4200 (1050) © TECO Electric & Machinery Co., Ltd. All rights reserved. 15 Strategic Goals and Policy Scheme (2/6) “National Science Technology Program-Energy” Sub-Subject: Master Program on Offshore Wind Power © TECO Electric & Machinery Co., Ltd. All rights reserved. 16 Strategic Goals and Policy Scheme (3/6) “Feed-in-Tariff “ Started from 2010 and increase gradually. F-I-T now: Onshore Wind NT$ 2.6338 (≒ US$ 0.0878) Offshore Wind NT$ 5.6076 (≒ US$ 0.1869) F-I-T of Wind Power in Taiwan NT$ 5.5626 5.5626 5.5626 5.6076 2.3834 2.6138 2.5971 2.6258 2.6338 2010 2011 2012 2013 2014 6 5 4.1982 4 3 2 Onshore Wind © TECO Electric & Machinery Co., Ltd. All rights reserved. Offshore Wind 17 Strategic Goals and Policy Scheme (4/6) “Offshore Wind Power Systems Demonstration Program and Subsidy Scheme“ Started from 2012. Offshore“2+1 projects” (2 private + 1 state-owned) Bureau of Energy, MOEA Taipower (TPC, 台電) project (state-owned) • • • • 2 offshore turbines by 2020 TC1A requirement Priority to local supplier EPC contract 2x Private projects • TGC • Swancor Each project: • 2 demo turbines by 2015 (Govt. fund 50%) • Complete whole wind farm by 2020 (>100MW) © TECO Electric & Machinery Co., Ltd. All rights reserved. 18 Strategic Goals and Policy Scheme (5/6) Zonal Development: 23 zones will be announced by BOE • • Water depth 5-30m Phase 1 : 108MW IPP Swancor 1.5GW • • Water depth 20-40m Phase 1 : 108MW IPP TGC 1.1GW • • Water depth 15m Phase 1 : 110MW ( south region) TPC(Changhua) 5.2GW TPC (Penghu) 600MW Other region 1.2-1.5GW © TECO Electric & Machinery Co., Ltd. All rights reserved. 19 Strategic Goals and Policy Scheme (6/6) State-owned Offshore Wind Test Site at Taichung © TECO Electric & Machinery Co., Ltd. All rights reserved. 20 Wind Power Industry and Localization - Policy Scheme - Localization and Challenge © TECO Electric & Machinery Co., Ltd. All rights reserved. 21 Why Localization ? We learn from onshore wind energy development…… To the power company • Unable to meet the local environmental demand • Longer lead time of repair piece, and higher maintenance fee • Decrease the annual electricity production • Decrease the annual power sales revenue To people/component suppliers in Taiwan • Difficult to get involved in wind energy industry To the whole society • No chance for traditional industry to make the transition • No direction in the academic research • Reduce the green-collar employment opportunity • Increase the carbon footprint of energy supply © TECO Electric & Machinery Co., Ltd. All rights reserved. 22 Wind Energy Industry Structure Developer Manufacturer Engineering Service Tower Head Tower Transformer Foundation Cable © TECO Electric & Machinery Co., Ltd. All rights reserved. 23 Wind Industry Capacity in Taiwan Raw material Steel: CSC(2MW) Resin: Swancor Glass Fiber: TAIWAN Glass Key Component Sub-System Casting: Yeong Guan Group, Yuan Jum Fong Fastener: Boltum, Chun Yu(2MW) Forging: Nan Lung (1.5MW), Sun Eng Steel Cable: Walsin Tower: CSMC(2MW), Century iron&steel Generator: TECO(2MW) Gearbox: FHI Transformer: Fortune Electric(1.5MW), Yaw System: GONGJI GRP cover: Horizonyacht © TECO Electric & Machinery Co., Ltd. All rights reserved. Wind Turbine System SI: TECO(2MW / onshore) Monitoring System: ADVANTECH, MOXA 24 Wind Industry Capacity in Taiwan Manufacturer Wind Turbine System Manufacturer © TECO Electric & Machinery Co., Ltd. All rights reserved. 25 Wind Industry Capacity in Taiwan TECO: Focus on the turbine system • • • • • • Marine Construction Wind resource investigation Subsea cable Foundation design Subsea exploration We expected it always. © TECO Electric & Machinery Co., Ltd. All rights reserved. 26 Wind Industry Capacity in Taiwan Service There are shortages of vessels and experiences. © TECO Electric & Machinery Co., Ltd. All rights reserved. 27 Wind Industry Capacity in Taiwan Engineering Difficulty of Project Financing & Insurance © TECO Electric & Machinery Co., Ltd. All rights reserved. 28 Conclusion © TECO Electric & Machinery Co., Ltd. All rights reserved. 29 Conclusion Taiwan is still a baby in offshore wind and we need urgent experience sharing, especially in marine engineering, project financing and insurance. © TECO Electric & Machinery Co., Ltd. All rights reserved. 30