Legislative: |
1.On January 18, 2018, the Ministry of Economic Affairs issued Order No. 10704600230, promulgating the full text comprising 31 points, effective immediately. 2.On May 15, 2025, the Ministry of Economic Affairs issued Order No. 11405005560, amending Points 2, 5, 7, 9, 10, 16, 21, 23, and 26, as well as Annexes 1, 2, 2-1, 4, and 7 to Point 10, Annex 4 and Annex 12 to Point 21; the amendments took effect immediately. |
Content: |
Chapter 1. General Provisions
Article 1 Purpose and Authorization
The Ministry of Economic Affairs (hereinafter referred to as MOEA) promulgates these Directions
authorized by Articles 4 and 9 of the Renewable Energy Development Act, Article 5 of the
Regulations on the Installation of Renewable Energy Power Generation Equipment, and Article 24
of The Electricity Act.
The objective is to promote a steady and orderly development of offshore wind energy
corresponding with the construction of domestic fundamental infrastructure in order to realize the
offshore wind power targets effectively and drive domestic industry development.
Article 2 Governing Authority
Directions shall be executed by the Energy Administration (hereinafter referred to as EA), MOEA,
or the Industrial Development Administration (hereinafter referred to as IDA).
Article 3 Definition and Categories
For the purpose of these Directions:
a. Project: Means a single potential zone that an applicant, who is an electricity enterprise or a
preparatory office of electricity company limited by shares, applies to MOEA to enter into the
installed capacity allocation. Following the process of allocation, the project shall be classified
into various stages respectively and named as Qualified Project, Selection Project, Auction Project,
or Allocated project.
b. Qualified Project: Means a Project submitted by the applicant is not expired or invalid
pursuant to Article 9 or 12 of Directions of Application for Offshore Wind Site Selection and has
been reviewed and verified.
c. Selection Project: Means a Qualified Project that participates in the Selection Procedure for
"Commissioning in 2020" or "Commissioning in 2021 - 2025" within the installed capacity
allocation
d. Auction Project: Means a Qualified Project that has participated in the Selection Procedure is
scored a minimum of 60 points in Selection Procedure but is not allocated all the Project’s total
applied for installed capacity and subsequently enters the Auction Procedure.
e. Allocated Project: Means a Selected or Auction Project has been allocated installed capacity
in Selection or Auction Procedure.
f. Commissioning Year: Refers to the year in which a project is installed with grid connection
and meter and prepares to enter into pre-commissioning process.
Article 4 Selection and Auction Volume
MOEA shall execute the following procedures so as to allocate 5.5 GW of installed capacity
between 2020 and 2025:
a. Selection Procedure
Depending on the Commissioning Year of the Project, MOEA shall implement two procedures;
“Commissioning in 2020” and “Commissioning in 2021-2025”. Projects in each procedure will be
scored, and ranked. The highest ranked projects, within the capacity allotted to the
commissioning period, will be allocated installed capacity.
Unless otherwise provided, 500 MW of capacity shall be allocated in the procedure of
“Commissioning in 2020” and 3 GW in the procedure of “Commissioning in 2021-2025”.
b. Auction Procedure
MOEA shall rank the Auction Projects based on their Feed-in-Tariff (hereinafter referred to as FIT)
price, and, subsequently, their commissioning year indicated by the applicant from 2021-2025.
Highest ranked projects will be allocated capacity within remainder of the 5.5 GW capacity after
the capacity allocated in the Selection Procedure has been deducted.
Chapter 2. Selection Procedure
Article 5 Qualification of Selection Procedure
Projects will qualify for the Selection Procedure if they have been submitted by an applicant to EA
for registration and are not invalid or expired under “Directions of Application for Offshore Wind
Site Selection”.
Article 6 Project Scope on Grid Connection
Project capacity, commissioning year and connection points shall not exceed those approved or
announced in the letter issued by Taiwan Power Company (hereinafter referred to as TPC).
Article 7 Project Scope on Environmental Concept
Project scope and capacity shall not exceed the conclusion from the latest approval, conditional
approval or recommendation of approval governed by the Environmental Impact Assessment and
Review Committee of the Environmental Protection Administration of the Executive Yuan.
Article 8 Commissioning Year
The applicant may select one or more commissioning years and express the willingness to divide
capacity of project in the Selection Procedure for "Commissioning in 2021 - 2025".
Article 9 Commitment on Projects Planned for “Commissioning in 2021-2025”
(1) The applicant shall commit to the following terms in order to enter the procedure for
"Commissioning in 2021 - 2025":
a. If the project plans for “Commissioning in 2021” or “Commissioning in 2022”, the
applicant shall commit to providing a substantial supply chain plan with elaboration, proof, and the
letter issued by IDA before December 31, 2018.
b. If the project plans for “Commissioning in 2023”, “Commissioning in 2024” or
“Commissioning in 2025”, the applicant shall commit to providing a
substantial supply chain plan with elaboration, proof, and the letter issued by IDA before
December 31, 2019.
c. The applicant shall commit to adopting best available technology to avoid or mitigate
environmental impact.
d. The applicant shall commit to allocating 3% of the electricity development assistance
funds, pursuant to Article 65 of The Electricity Act, to the ecosystem integration and corporate
social responsibility project.
(2) The IDA shall publish its requirements for the supply chain plan and the substantial supply
chain plans in (1) shall be published on the IDA website.
Article 10 Preparation and Submission
(1) The applicant shall tender the submission with 30 copies of the following documents (refer to
Appendix 1) and the electronic files, in person or by post (based on the time of delivery on the
delivery proof), to EA before 5:00 pm on March 30, 2018:
a. An "Application Form for Offshore Wind Potential Zones Installed Capacity Allocation-
Commissioning in 2020" or an "Application Form for Offshore Wind Potential Zones Installed
Capacity Allocation “Commissioning in 2021 - 2025". (Refer to Appendix 2 and 2-1)
b. Maps illustrating the location, layout and the surrounding windfarms.
c. Environmental impact statements and the approval, conditional approval or the latest minutes
of panel meeting which recommends to approve the project issued by the Environmental Impact
Assessment and Review Committee of the Ministry of Environment of the Executive Yuan.
d. Letters issued by TPC with regard to the grid connection of renewable power generation
systems.
e. Registration issued by EA under Direction of Application for Offshore Wind Site Selection
f. Proposal of Offshore Wind Potential Zones Installed Capacity Allocation on Selection
Procedure. (Refer to Appendix 3)
g. Project Data Collection and Usage Agreement (Refer to Appendix 4)
h. Representative Authorization Letter (Refer to Appendix 5)
i. Statement of Offshore Wind Potential Zones Installed Capacity Allocation (Refer to Appendix
6)
j. An applicant who applies for the Selection Procedure for "Commissioning in 2020" shall
provide actual and substantial documents in order to prove the progress of project.
(such as the submarine cable circuit planned course survey permit, the sea area land use location
permit, specific zones of non-first-grade coastal conservation zones permit, underwater cultural
heritage survey, opinion reports, or agreement letters from the local government, fisheries and
other relevant parties, and other substantial proof related to wind farm development, required for
the electricity enterprise planning permit).
k. An applicant who applies for Selection Procedure for "Commissioning in 2021 - 2025" shall
propose an Offshore Wind Potential Zones Installed Capacity Allocation Commitment (refer to
Appendix 7) and the proof of founding of each sponsor of the applicant.
l. Other documents required by MOEA.
Article 11 Reviewing and Verifying
(1) The Selection Procedure includes qualification reviewing, verifying and scoring. The
procedure shall be divided into two procedures for “Commissioning in 2020” and
“Commissioning in 2021-2025” respectively according to the commissioning year indicated by
the applicant.
(2) MOEA shall notify the applicant to revise or supplement application or explain in person
within fixed time for any question raised by MOEA regarding to the application submitted by the
applicant.
(3) A project which fails to satisfy the qualification pursuant to Article 5 or submits after the
deadline provided in Article 10 shall not be accepted.
(4) Under following circumstances, MOEA shall notify the applicant to revise or supplement the
application within fixed time. If revising or supplementing are not within fixed time or are
incompliant with the requirements, the project shall not be accepted.
a. Incompliant with Article 6 to 9.
b. Incomplete, missing or questionable application.
c. False or concealed information
d. Other conditions which require further explanation or supplementation.
Article 12 Calling the Panel Meeting
(1) For the Selection Procedure, MOEA shall call 19 to 27 panelists including representatives of
authorities, institutions who are experts or scholars of offshore wind power engineering, finances,
or other related expertise. The external panelists in meeting shall not be less than one third of the
group.
(2) During a panel meeting, half of the panelists shall be in attendance and attend the meeting in
person.
(3) In any one of the following circumstances, a panelist shall recuse himself from the meeting:
(I) Whether the panelist him/herself, his/her spouse, his/her relative within three generations, or
other relative who lives together, is involved with the application.
(II) Within the last three years, the panelist him/herself or his/her spouse has had relationship of
employment, consulting or agency with the applicant or the representative of the applicant.
(III) Within the last three years, the panelist him/herself or his/her spouse has had a working
relationship with the applicant or the representative of the applicant as an employer/employee, a
consultant, a principle, a mandatory, or an agent.
(IV) Other than the preceding circumstances, the panelist him/herself or MOEA identifies the
unsuitability of being a panelist.
(4) In case of preceding circumstances or other unsuitable reasons, MOEA shall exclude the
unsuitable panelist if the panelist does not recuse him/herself.
Article 13 Scoring Criteria
(1) For the Selection Projects planned for "Commissioning in 2021-2025", scoring must be awarded
based on the following criteria during the panel meeting (selection items, detailed items, and key
points of scoring as described in Appendix VIII):
a. Technical capabilities (60%): Divided into construction (25%), engineering design (20%),
operation and maintenance planning (15%).
b. Financial capabilities (40%): Divided into financial soundness (30%), associations with
domestic financial institutions (10%).
(2) For the Selection Projects planned for "Commissioning in 2020”, in addition to the preceding
scoring criteria, the panelist shall examine project’s progress of the permits (whether prepared,
under review, or acquired) provided in Electricity Act, Electrical Registration Regulations and
relative regulations.
(3) A Selection Project shall be placed last in the ranking if it is scored a total of zero points by
panel meeting in any selection item.
Article 14 Ranking and Allocating Projects for “Commissioning in 2020”
(1) The Selection Projects planned for "Commissioning in 2020" shall be scored and ranked
without consideration of the difference between geographic regions. The project with the highest
total scores shall be ranked in first place, the next ranked the second, and so on. For Selection
Projects with identical rankings, the project with higher scores in its "technical capabilities" shall
have priority. If the scores for "technical capabilities" are also identical, MOEA will conduct a
random drawing.
(2) The volume of the Selected Procedure for "Commissioning in 2020" shall be 500 MW in
principle. MOEA shall allocate the capacity from the highest ranked project to the project whose
allocated capacity accumulated with preceding allocated projects reaches 500. MOEA may increase
the 500 MW cap by up to an additional 100 MW to accommodate the project which is the last
ranked project within 500 MW. Whereas the project is not located in Changhua area, it is not
subject to 100 MW limitation.
(3) The Selection Project which is not allocated the entire capacity due to the situation provided in
(2) may forfeit the capacity already allocated and participate in the Selection Procedure for
“Commissioning in 2021-2025”or the Auction Procedure.
(4) Projects which are not allocated capacity may participate in the Selection Procedure for
“Commissioning in 2021-2025” or the Auction Procedure.
Article 15 Ranking and Allocating Projects for “Commissioning in 2021-2025”
(1) The Selection Projects planned for "Commissioning in 2021-2025 " shall be scored and ranked
without consideration of the difference between geographic regions. The project with the highest
total scores shall be ranked in first place, the next ranked the second, and so on. For Selection
Projects with identical rankings, the project with higher scores in "technical capabilities" shall
have priority. If the scores for "technical capabilities" are also identical, the Selection Project
planned to commission earlier shall have priority. If the commissioning years are also identical,
MOEA will conduct a random drawing.
(2) The volume of Selection Procedure for "Commissioning in 2021-2025" shall be 3 GW in
principle. MOEA shall allocate the capacity from the highest ranked project to the project whose
allocated capacity accumulated with preceding allocated projects reaches 3 GW. MOEA may
increase the 3 GW cap by up to an additional 100 MW to accommodate the project which is the
last ranked project within 3 GW.
(3) The Selection Project which is not allocated the entire capacity due to the situation described
in (2) may forfeit the capacity already allocated and participate in the Auction Procedure.
(4) Projects which are not allocated capacity may participate in the Auction Procedure.
Article 16 Ceiling Capacity on Consortium
(1) In the Selection Procedure for “Commissioning in 2021-2025”, MOEA shall also rank the
consortium pursuant to the projects’rank.
(2) For the consortium ranked in first place, the ceiling capacity for all Selection Projects
submitted by the first- place consortium shall not exceed 40% of 3 GW. The second place shall
not exceed 30% of 3 GW, the third place not 20% of 3 GW. For the rest of the consortium their
selection projects shall not exceed 10% of 3 GW.
(3) In case ceiling capacity satisfies all the Selection Projects submitted by the ranked consortium,
the rest of ceiling capacity shall be allocated to others but the ceiling capacity is still subject to (2).
(4) In case ceiling capacity does not satisfy all the projects submitted by the ranked consortium,
MOEA shall deduct the allocated capacity from the consortium’s lowest ranked project but may
increase 100 MW to the deducted project in consideration of the integrity and effectiveness of the
windfarm.
(5) The Selection Project which is not allocated the entire capacity due to the situation described
in (4) may forfeit the allocated capacity and participate in the Auction Procedure.
(6) Qualified projects which are owned by the same preparatory office, or of which one of the
sponsor or representative is the same shall be viewed as one consortium.
(7) In case consortium described in the application does not match the record proposed for
registration under “Directions of Application for Offshore Wind Site Selection”, MOEA shall
verify and identify consortium pursuant to the record registerd before December 18, 2017.
Article 17 Allocation Limitation
(1) Allocation shall be implemented based on the ranking, followed by the earliest commissioning
year, grid connection points and the sequence indicated by the applicant.
(2) If there is no sufficient grid capacity in the earliest commissioning year indicated by an
applicant, MOEA shall allocate the capacity to next indicated commissioning year.
(3) Capacity allocation shall not be outside of the grid connection points, capacity, and the
commissioning year indicated by an applicant.
Article 18 Projects Devision
(1) In the Selection Procedure for “Commissioning in 2021-2025”, if annual announced grid
capacity is insufficient to allocate entire project and an applicant expresses the willingness to
divide the project capacity, MOEA shall divide the insufficient part of project to next available grid
connection points and year unless insufficient part is less than 100 MW capacity.
(2) Under preceding circumstances, if there is no more available grid capacity prior to 2025,
allocated applicant shall agree to forfeit insufficient part of project.
(3) Under circumstances provided in (1), if an applicant expresses the unwillingness to divide
project capacity, the entire capacity shall be moved to the next grid capacity available year unless
no more available grid capacity prior to 2025. If so, an applicant shall agree to forfeit entire
allocated project capacity.
(4) An applicant who forfeits the capacity pursuant to (2) or (3) may participate in the Auction
Procedure.
(5) Transmission Company may moderate the outcome of allocation and division on the grounds
of feasibility, steadiness of transmission and layout of cables.
Article 19 Anouncement and Notification
(1) MOEA shall announce the outcome of ranking, allocation, and the rest of grid capacity, as well
as notify each allocated applicant of the commissioning year, allocated capacity, and grid
connection point. Allocated applicants, subsequently, shall complete the signing of Administrative
Contract within fixed time indicated by MOEA. The Administrative Contract shall provide terms,
included but not limited to, the performance bond and penalties for breach of contract.
(2) MOEA shall notify the applicants who are not allocated in the Selection Procedure that they may
participate in the Auction procedure before the deadline for submission.
(3) Other than the condition provided in Article 14(3), Article 15(3), Article 16(5), or Article 18(4),
an allocated applicant who forfeit the allocated capacity shall not participate in the Auction
Procedure.
Chapter 3. The Auction Procedure
Article 20 Qualified Projects
(1) A Selection Project which is scored 60 or above but not allocated the entire capacity of the
project is qualified to participate in the Auction Procedure.
(2) Articles 5 to 8 apply to the Auction Procedure.
Article 21 Preparation and Submission of a Bid
(1) Applicants shall tender their submission by post (based on the time of delivery on the delivery
proof) or in person, to EA before 5:00pm on the deadline for submission indicated by MOEA with
sealed bidding form (See Appendix IX) into the inner bidding envelope (See Appendix X),
notification described in Article 19 and the following documents into outer bidding envelope (See
Appendix XI) with the affixed seals or signatures of the applicant and the representative on the
cover of the envelope.
a. Auction Application Form
b. Maps illustrating the location, layout and the surrounding windfarms.
c. Environmental impact statements and the approval, conditional approval or the latest panel
minutes that recommends to approve the project issued by the Environmental Impact Assessment
and Review Committee of the Environmental Protection Administration of the Executive Yuan.
d. Letters issued by TPC with regard to the grid connection of renewable power generation
systems.
e. Project Data Collection and Usage Agreement (Refer to Appendix 4) f. Representative
Authorization Letter (Refer to Appendix 5)
g. Statement of Offshore Wind Potential Zones Installed Capacity Allocation (Refer to Appendix
6)
h. Other documents required by MOEA
Article 22 Requirement on Bidding Form
(1) Applicants shall tender a FIT price (NTD/kWh) with the number to an accuracy of four
decimal places.
(2) Applicants must follow the specified format of the bidding form and complete each part with
accurate and truthful information. Forms shall be completed by using blue/black fountain pens,
ballpoint pens which cannot be edited/erased, or printers. If corrections must be made, please affix
the seals of the applicant and the representative next to the corrected ones.
(3) The names of the applicant and the representative shall be clearly stated on the bidding forms,
and the seals or signatures of the applicant and the representative are also required.
Article 23 Bid Exchange and Revocation
(1) If there are missing or incomplete documents provided in Article 21, MOEA shall notify the
applicant to revise and supplement the application within a fixed time. If not done so or document
is incompliant with the requirements, application shall not be accepted.
(2) Application shall not be accepted if an applicant does not meet the qualification provided in
Article 20 or deadline for submission described in Article 21.
(3) Once the bidding form provided in Article 21 has been delivered to EA, it shall not be
exchanged, revised, or supplemented.
(4) Applicant may revoke the bidding by post or deliver the withdrawal letter to EA in person before
5:00pm prior to bid opening. If not done so, the revocation is invalid.
Article 24 Reviewing and Verifying
(1) The bid or bidding form shall be invalid if:
a. FIT price is not filled out by the way requested or is unclear.
b. It is a repeat or shill bid.
c. It is not prepared with the specific format provided or unclear on the ground of damages.
d. It is not sealed or is torn which might influence bid opening.
e. It is unclear on the grounds of incorrect or false information.
f. It is unclear or without or incomplete seals or signature on the bid, bidding form, envelope or on
the modified ones.
g. There is more than one bidding forms sealed inside a bidding envelope.
h. Without indicating the applicant's name and address, or the name, address, and phone number
of the representative or sponsor on the cover of the outer bidding envelope.
i. Bidding form is added with conditions or expiration.
j. Other significant defects verified by MOEA.
(2) In case the applicant does not fill out, provide more than one, or offer the price higher than the
FIT rate announced in the bidding year, the FIT price indicated by an applicant shall be recognized
as the FIT price announced in the bidding year.
Article 25 Bid Opening and Ranking
(1) An applicant or the representative of the applicant with Authorization Letter (See Appendix
XIII) may attend the bid opening in person.
(2) Without taking the difference between geographic regions into consideration, the projects shall
be ranked by FIT price. The lowest bid shall be ranked in first place, the next lowest ranked the
second, and so on. If ranked identically, MOEA shall conduct a random drawing to determine the
ranking.
Article 26 Allocation and Granted FIT Price
(1) MOEA shall allocate the capacity to ranked projects within the rest of 5.5 GW capacity after
the capacity allocated in the Selection Procedure has been deducted.
(2) Signed FIT price shall be recognized as the lowest one between the granted price in the
Auction Procedure and the announced FIT rate announced in the year of signing the Power
Purchase Agreement with TPC.
(3) Allocated applicant may supply electricity via direct supply or wheeling to end users and shall
report to the EA within one month after the contract signing date. If an allocated applicant stops
supplying electricity via direct supply or wheeling and signs a new Power Purchase Agreement
contract, applicant shall comply with relevant energy regulations at that time and the contract
price shall apply to lowest price between the bidding price and the FIT rate announced in the year
of signing the Power Purchase Agreement with TPC.
(4) Other than the condition in terms of allocation capacity of 3 GW or verified by MOEA, Article
17 to Article 19 shall apply to the Auction procedure.
Chapter 4. Signing of the Administrative Contract
Article 27 Preparation and Submmission
(1) For applying for signing of Administrative Contract, allocated applicant shall provide
notification provided in Article 19 or 26, modified Proposal of Offshore Wind Potential Zones
Selection in accordance with the opinion from panelists ,and sufficient performance bond before
the deadline for submission indicated by MOEA.
(2) If allocated applicant does not revise the document within fixed time indicated by MOEA,
MOEA shall void or revoke the outcome of allocation and deny the submission for signing of the
Administrative Contract on the grounds that allocated applicant submits the application after
deadline for submission, incompliant documents, or without sufficient performance bond.
(3) Administrative Contract provided in (1) shall be announced by MOEA separately.
Article 28 Performance Bond
(1) Projects planned for "Commissioning in 2020” will owe a performance bond which shall be
calculated by multiplying the total capacity by NT$4 million per 1 MW (a performance bond of
NT$4 million/MW). The performance bond of projects for “Commissioning in 2021-2025” shall
be calculated by multiplying the total capacity by NT$2 million per 1 MW (a performance bond of
NT$2 million/MW).
(2) Allocated applicant may choose to pay their performance bond from one of the following
payment methods:
a. Cash
b. Promissory note or check issued by a financial institution
c. Certified check
d. Postal order
e. Central Government bonds(CGBs)
f. Certificate of deposit pledged to the procuring entity
g. Irrevocable stand-by letter of credit issued or confirmed by a bank h. Bank guarantee (included in
Appendix XIV)
(3) Allocated applicants who choose to deposit payment for the performance bond in cash shall
make a deposit before the signing of the Administrative Contract. In addition, a receipt shall be
obtained as proof of performance bond payment. The same applies to those who wish to submit
payments for the performance bond using other methods besides cash.
(4) One year after an applicant acquiring electrical license, or once after the contract was
terminated and MOEA verifies no further amount to be deducted, the rest of the performance bond
(without interest) or the bank guarantee shall be returned to the bank or an applicant.
(5) Other details, such as the account information for depositing performance bond payments,
shall be announced by MOEA separately.
Article 29 Project Milestones and Penalties
(1) After signing Administrative Contract, MOEA shall issue the Offshore Wind
Power System Installation Agreement to allocated applicant.
(2) Allocated applicant shall acquire establishment permit provided in
Electricity Act and Electrical Registration Regulations before December 31, 2019 and work
permit in the year committed by allocated applicant.
(3) If allocated applicant is liable to delay the acquirment of establishment permit up to 12 months,
the registration issued under “Directions of Application for Offshore Wind Site Selection” shall be
voided which shall not be subject to the requirement provided in Article 12 Section 1 (s) under
said Direction.
(4) MOEA shall void the work permits in which there is no progress in constructional work within
two years of obtaining their work permits.
(5) Allocated applicant fails to fulfill its commitments required in Article 9, the penalty for breach
of contract shall be processed according to Article 27 Section 3 of the Administrative Contract.
(6) An applicant who delays the process provided in (2) or (4) due to force majeure or reasons not
liable to the applicant, no later than 90 days before expiry of the time limit, may apply for
extension which shall be no longer than 6 months every time.
(7) Allocated project and the signed Administrative Contract shall be revoked or invalid if the
registration is invalid or expired provided in “Directions of Application for Offshore Wind Site
Selection”.
Chapter 5. Reserved Projects
Article 30 Qualification and Procedure
(1) If the registration is invalid provided in Article 27 (2), Article 29 (3), the signed Administrative
Contract is terminated, or other circumstances verified by MOEA, the allocated capacity of
project shall be released to next- ranked but not allocated project in Selection Procedure. The
same procedure applies to the Auction Procedure.
(2) Reserved application which receives capacity allocation as described above shall acquire the
establish permit within two years after capacity allocation. In addition,
reserved applicant shall commit to commissioning wind farm before the end of 2025 which is not
subject to Article 12 Section 1(2) in “Directions of Application for Offshore Wind Site Selection”.
(3) Articles provided in Chapter 2 to Chapter 4 are applicable to the performance bond, the
signing of the Administrative Contract, as well as other conditions.
Chapter 6. Supplemental Provisions
Article 31 Supplemental Provisions
Other matters not covered herein shall be processed according to relevant legislations. |