The Overview of Taiwan Wind Power Industry

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The Overview of Taiwan Wind Power Industry

Yule K. WangAssistant Vice PresidentECO Energy Business GroupTECO Electric & Machinery Co., Ltd.

© TECO Electric & Machinery Co., Ltd. All rights reserved. 2

Outline

Sustainable Energy Use - Wind Power in Taiwan

- Challenge in Taiwan

Wind Power Industry and Localization- Policy Scheme

- Localization and Challenge

Conclusion


Sustainable Energy Use - Wind Power in Taiwan - Challenge in Taiwan


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.


Taiwan has the best offshore wind resources in the world! Taiwan wind source and current status


Onshore Wind ResourcesBest Wind Area: “The Northwestern Coast”

Full-load hours: “2600-3200 hr/year”

Second-Best Wind Area: “The Southwestern Coast”


4th Wind Area: “The South Coast”


3rd Wind Area: “The South Coast”

Full-load hours: “ >2500 hr/year ”


Onshore Wind Resources

7

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


The Truth behind the “Green Effect”

Typhoon…

The Imported wind turbines break down from time to time because of the local environment --> high O&M cost , low availability

Salt Injury…

High Temperate & Humidity…

Fall down…

Twist…


Sustainable Energy Use - Wind Power in Taiwan- Challenge in Taiwan


About Taiwan

Area: 36,193 km2

Population: 23,313,517Population Density: 644 people/km2

GDP(PPP): $ 977 billionGDP(PPP)per capita: $41,581


The Challenge in Taiwan

0

1000

2000

3000

4000

5000

6000

1993 1998 2003 2008 2013

2833 3505

4388 4763

4928

LOEPer Capita Energy Consumption

97.8% 97.7% 97.5% 97.5% 97.6%

0%

20%

40%

60%

80%

100%

1993 1998 2003 2008 2013

Dependence on Imported Energy

With increasing demand of energy and high dependence on imported energy, we are finding ways for sustainable energy use.


The Challenge in Taiwan

CO2 Emissions per capita of Taiwan was No.1 in Asia.

2011 -- No.12 in Asia according to IEA Statistics


0.23%

0.80%1.26%

1.29%

4.26%

5.33%7.65%

7.83%

10.53%

32.92%

35.74%

Installed Power Capacity

PumpedHydro PowerOil-Fired

RenewableEnergyNuclearPowerLNG-Fired

Coal-Fired

Percentage of WIND is still LOW

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).

Bureau of Energy, Ministry of Economic Affairs (July, 2014)

The ratio of power generating from wind <1%


Wind Power Industry and Localization

- Policy Scheme- Localization and Challenge


Strategic Goals and Policy Scheme (1/6) ”Thousand Wind Turbines Office”Goal: (gradually replace nuclear power with green energy)

2011 2015 2020 2025 2030Onshore

Accum. MW(units)

563(288)

866(350)

1200(450)

1200(450)

1200(450)

Offshore Accum. MW

(units)0 >12

(4 demo)320(64)

1800(360)

3000(600)

MW(units)

563(288)

881(354)

1520(514)

3000(810)

4200(1050)


Strategic Goals and Policy Scheme (2/6) “National Science Technology Program-Energy”

Sub-Subject: Master Program on Offshore Wind Power


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)

2.3834 2.6138 2.5971 2.6258 2.6338

4.1982

5.5626 5.5626 5.5626 5.6076

2

3

4

5

6

2010 2011 2012 2013 2014

NT$

F-I-T of Wind Power in Taiwan

Onshore Wind Offshore Wind


Strategic Goals and Policy Scheme (4/6) “Offshore Wind Power Systems Demonstration Program and Subsidy

Scheme“ Started from 2012.

Bureau of Energy, MOEA

Taipower (TPC, 台電) project (state-owned)

2x Private projects• TGC• Swancor

Each project: • 2 demo turbines by 2015

(Govt. fund 50%)• Complete whole wind farm

by 2020 (>100MW)

• 2 offshore turbines by 2020• TC1A requirement• Priority to local supplier• EPC contract

Offshore“2+1 projects” (2 private + 1 state-owned)


Other region1.2-1.5GW

IPP Swancor1.5GW

TPC(Changhua)5.2GW

TPC (Penghu)600MW

IPP TGC1.1GW

• Water depth 5-30m• Phase 1 : 108MW

• Water depth 20-40m• Phase 1 : 108MW

• Water depth 15m• Phase 1 : 110MW

( south region)

Strategic Goals and Policy Scheme (5/6) Zonal Development: 23 zones will be announced by

BOE


State-owned Offshore Wind Test Site at Taichung

Strategic Goals and Policy Scheme (6/6)


Wind Power Industry and Localization

- Policy Scheme- Localization and Challenge


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


Wind Energy Industry Structure

Developer Manufacturer Engineering Service

Tower

Transformer

Foundation

Cable

Tower Head


Wind Industry Capacity in TaiwanRaw material Key

Component Sub-System Wind Turbine System

Steel: CSC(2MW)Resin: SwancorGlass Fiber: TAIWAN Glass

Casting: Yeong Guan Group, Yuan Jum FongFastener:Boltum, Chun Yu(2MW)Forging: Nan Lung (1.5MW), Sun Eng Steel Cable: Walsin

Tower: CSMC(2MW), Century iron&steelGenerator: TECO(2MW)Gearbox: FHITransformer: Fortune Electric(1.5MW), Yaw System: GONGJIGRP cover: Horizonyacht

SI: TECO(2MW / onshore)Monitoring System: ADVANTECH, MOXA


Wind Industry Capacity in Taiwan

Manufacturer Wind Turbine System Manufacturer


Wind Industry Capacity in TaiwanTECO: Focus on the turbine system

• Marine• Construction • Wind resource investigation• Subsea cable• Foundation design• Subsea exploration

We expected it always.



Service There are shortages of vessels and experiences.



Engineering Difficulty of Project Financing & Insurance


Conclusion


Conclusion

Taiwan is still a baby in offshore wind and we

need urgent experience sharing, especially in

marine engineering, project financing and

insurance.

The Overview of Taiwan Wind Power Industry

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