It’s possible that I shall make an ass of myself. But in that case one can always get out of it with a little dialectic. I have, of course, so worded my proposition as to be right either way (K.Marx, Letter to F.Engels on the Indian Mutiny)
Monday, February 10, 2025
Offshore Wind Lifts Taiwan's Wind Power Generation to Record Levels
Last week, Taiwan reported peak wind production levels with presence of a strong northeast monsoon off its coast. The state-owned utility company Taipower said that wind power generation started to rise on Thursday, surpassing 3.1 GW by early hours of Friday morning. This record output accounted to 10 percent of the total electricity generation in Taiwan.
The peak production is a positive outcome as Taiwan doubles-down on investments in the offshore wind sector. In January, the Ministry of Economic Affairs (MoEA) issued an updated plan for the renewable energy, targeting to install 8.2 GW of solar and offshore wind by the end of 2026. This will see renewable energy account for 20 percent of electricity generation by 2026.
In addition, Taipower reported on the steady growth in Taiwan’s wind power generation. The output has rose from around 3 billion kilowatt-hours in 2022 reaching nearly 10 billion kWh last year. These levels of wind power are helping Taiwan meet peak electricity demand during the evening hours while solar power provides a stable output during the day.
One of Taiwan’s largest offshore wind farms, the Yunlin project, entered operation last week. The Yunlin wind farm is now producing clean energy at its design capacity of 640 MW. It is located in the Taiwan Strait, between 5 and 11 miles off the west coast of Taiwan, and comprises 80 wind turbines connected to two onshore substations in Yunlin County. The development and operation of the wind farm is led by a consortium comprising Skyborn Renewables, TotalEnergies, EGCO Group and Sojitz Corp.
“We are pleased with the completion of the Yunlin offshore wind farm. This project realized with our partners will help Taiwan reach its 2025 target of 5.7 GW of offshore wind power,” said Olivier Jouny, Senior Vice President Renewables at TotalEnergies.
Mitsubishi Takes $340M Impairment on its Offshore Wind Portfolio
In its latest quarterly report, Japanese industrial conglomerate Mitsubishi revealed that it is taking a $340 million hit in connection with the reduced prospects of its domestic offshore wind portfolio, which it has placed under review.
Mitsubishi Corporation has announced plans to restructure its offshore wind portfolio in Japan, citing disruptions in the macroeconomic environment. It will be reviewing the future of three projects, including the 480 MW Noshiro Mitane Oga project off Akita Prefecture, 820 MW Yurihonjo City Offshore wind farm off Akita Prefecture and the 400 MW Choshi City project off the coast of Chiba Prefecture.
Mitsubishi was selected the operator of these projects in December 2021, when Japan completed its first fixed-bottom wind auction.
“In the wake of the pandemic and the Ukraine crisis, the business environment for offshore wind power has significantly changed and is continuing to change worldwide due to factors such as inflation, the depreciation of the yen, tight supply chains and rising interest rates. We will consider the appropriate next steps after thoroughly examining the results of our review,” said Mitsubishi.
Across major markets, investments in offshore wind continue to face economic pressure, especially in Europe and the U.S. In Japan, there is also a noticeably bearish market sentiment on the profitability of offshore wind projects. In the third wind auction concluded in December, at least 15 companies in the sector, including Mitsubishi Corp. and Cosmo Energy Holdings, did not participate, according to Nikkei. This is despite some of these companies having conducted environmental assessments in readiness for the auction.
Japan heavily relies on energy imports for its electricity needs and is targeting offshore wind as a stable supply that can be tapped locally. The country’s goal is to install 10 GW by 2030 and 45 GW by 2040.
Meanwhile, the Japanese government has signaled raising the local content goal for offshore wind farms to 70 percent from the current 60 percent. Reportedly, the expert panel reviewing the local content rules begins meeting this month and is expected to finalize its findings by summer. Some of the issues to be deliberated include the necessary degree of government support to the wind sector.
The tightening of the local content rules is meant to reduce reliance on foreign companies, especially in the manufacturing of wind farm core components. Currently, Japan relies on imports of these components from western companies such as Siemens Gamesa and Vestas. Japanese firms are mainly concentrated in offering services like the installation and operation of offshore wind farms.
Report: Offshore Wind Energy Surpassed Installed Capacity of 80 GW in 2024
Denmark launched the first offshore wind farm in 1991 and now the industry exceeded 80 GW for the first time
While many critics continue to question the viability of offshore wind energy, the UK trade group RenewableUK is out with a new market analysis highlighting the “extraordinary speed” of growth for the sector. The report details that installed capacity grew by 15 percent in the past 12 months as leading countries accelerated installations and new countries also adopted the increasingly accepted source of renewable energy.
The report calls out several key firsts including that global capacity surpassed 80.9 GW, the first time it has been at that level coming from a base of 70.2 GW just a year earlier. Additional countries are also making process with the first projects including the introductory offshore wind projects in Indonesia, Chile, and Malta which were confirmed in 2024.
Recently, Greece mapped out its first project while on the other side of the globe, Australia finalized additional zones and reported progress with its likely first projects to win regulatory approval. The United States officially commissioned its first commercial-scale offshore wind farm in 2024 while others are proceeding in the construction phase.
“Our latest EnergyPulse Insights report shows that the global offshore wind market is continuing to grow at an extraordinary speed year after year, as more countries look to seize the industrial, economic, and environmental opportunities which the technology offers,” comments RenewableUK’s Chief Executive Dan McGrail.
The report however also shows a continued concentration among a few countries while others work to accelerate the next phase of growth. Two countries, China (adding 6.9 GW) and the Netherlands (adding 1.7 GW) accounted for 63 percent of the total capacity added in the offshore segment in 2024. Further, for the first time, a single country, China (41 GW installed) now accounts for more than half the industry’s current capacity.
The first offshore wind farm, Vindeby installed in Denmark, was commissioned in 1991. The UK entered the sector in 2003 and by 2008 had become the leader, a position it maintained till 2021. China took the lead in 2021 and two years later in 2023 was over 31 GW. The UK remains second but far behind with 14.7 GW installed and Germany is third at 8.5 GW.
The growth is set to continue predicts RenewableUK reporting that the number of projects in the global offshore wind pipeline has increased from 1,461 to 1,555 over the last twelve months. It notes that the number of countries involved in the sector is up from 41 to 44 as new markets continue to emerge.
The project pipeline they believe looks strong when considering offshore wind farms at all stages of development. The report reviews fully operational, under construction, consented, in the planning system, and early development projects.
China has the largest defined pipeline with 247 GW across 437 projects, while the UK remains in second place with 96 GW across 123 projects. The U.S. has significant potential according to the report with its 79 GW of defined projects placing it ahead of Germany which has 68 GW and Sweden which was reported with 55 GW. Sweden, however, recently blocked many of the projects due to concerns raised by the military for defense and of course, Donald Trump has taken steps since his inauguration to stop the progress in the U.S. industry.
RenewableUK also used the report to highlight the opportunities in the UK. It is urging the UK government to maximize its investment in new offshore wind capacity. Wind energy became the UK’s largest source of electricity surpassing gas in 2024. In the upcoming Allocation round 7, 13 UK offshore wind projects with a total capacity of 7.3 GW are eligible. The government received 72 responses during the consultation round and is expected to launch the next auction in March.
Supporting the growth are also developments in new technology. Media reports indicate Siemens Gamesahas received consent to proceed with the development of a prototype 21 MW offshore turbine that will rial the largest announced in China. RewnewableUK emphasizes a large potential saying the industry cold surpass 254 GW by the end of 2030 while expect the emerging floating offshore wind segment could have 3.9 GW installed by 2030.
Interior Department Cancels Wind Project Meetings Following Trump’s Order
Empire Wind is proceeding while BOEM canceled meetings to review the plan for Vineyard Mid-Atlantic (Equinor)
The first demonstration of the new Trump administration’s efforts to derail the offshore wind energy sector emerged as the Department of Interior began reversing steps taken in the last days of the Biden administration. The Bureau of Ocean Energy Management canceled meetings for the review of an offshore wind project while the Department of the Interior highlighted that it was taking “steps to streamline processes that will enhance efficiency and innovation.”
BOEM announced it was canceling the virtual public meetings scheduled by the Biden administration to begin comments and review of the Construction and Operations Plan submitted by Vineyard Mid-Atlantic. The first meeting had been scheduled for February 6, followed by sessions on February 11 and 19 for comments on the plan. It, however, noted that written comments could still be submitted before the March 3 deadline.
The prior administration on January 14 launched the review process for the wind farm that would be developed by Copenhagen Infrastructure Partners and be located approximately 20 miles offshore New York and 36 miles offshore New Jersey. The lease was awarded in 2022 as part of the auction for the New York Bight and the construction plan called for 2 GW of electricity from up to 117 wind turbines, enough to power more than 700,000 homes.
The Department of the Interior and BOEM said in announcing the cancellation that it is implementing President Trump’s memorandum temporarily halting offshore wind leasing on the Outer Continental Shelf. The memorandum also pauses new or renewed approvals, rights-of-way, permits, leases, or loans for offshore wind projects pending a review of federal wind leasing and permitting practices.
The new Secretary of the Interior, Doug Burgum, however during his first day in the position on February 3, signed measures to “immediately identify all emergency and legal authorities available to facilitate the identification, permitting, leasing, development, production, transportation, refining, distribution, exporting and generation of domestic energy resources and critical minerals,” and to “expedite the authorization” of key projects. Burgum said there would be an emphasis on deregulation and unlocking resources in Alaska following Trump’s directions.
Despite the new policies and move away from offshore wind energy, two projects highlighted that they are continuing to move forward. Equinor today, February 5, announced its year-end financial results and detailed its outlook including a continued commitment to the Empire Wind project. It completed the financing for the 800 MW project at the end of 2024 and highlights a low cost of entry as well as the utilization of project financing which along with future tax credits will cover the remaining CAPEX for Empire Wind. At the right time, it will also bring in a partner for the project which is due to be completed by 2027.
The commitment to Empire Wind comes as the company reported it is “high-grading its portfolio, reducing the investment outlook for renewables and low carbon solutions, and improving cost across the organization” as part of an effort to improve returns and free cash flow generation. Equinor said it was proceeding with Empire Wind, “a project in a challenging market with returns under pressure and uncertainty,” while reiterating that it will continue to deliver above 10 percent equity return on its current and renewable assets in operations.
Similarly, Dominion Energy highlighted its continued commitment and progress for its Coastal Virginia Offshore Wind project. It reported yesterday that the installation has reached the halfway mark and that the offshore work remains on budget and on time. Due for completion at the end of 2026, the project with 176 wind turbines and a capacity of 2.6 GW, is slated to be the largest offshore wind farm in the United States.
Dominion holds rights for two other offshore wind projects in the mid-Atlantic region while Equinor has another one in New England and one in the mid-Atlantic. Those are listed as longer-term prospects, and likely to be delayed by the new Trump policies.
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