IDB: CIP's local content report has been approved, Hai Long pending

By WindTAIWAN / 2020-01-02
IDB: CIP's local content report has been approved, Hai Long pending

IDB approved Copenhagen Infrastructure Partners(CIP)’s local content report on CFXD wind farms, Norhthland & Yushan invested Hai Long’s report did not meet the policy requirement

After one and half months of local content review for wind farms due to completed in 2023 and beyond, results have finally been made by IDB as Deputy Director Chih-ching Yang confirmed this morning that Denmark-based CIP has passed the local content review, however, still pending formal contracts with tier1 and tier 2 suppliers. CIP previously explained that tier1 and tier 2 contracts can only be signed after the project reached financial close. The date is not yet revealed.

Hai Long’s 300MW wind farm won by selection has not been able to pass the local content review as IDB indicated it has not submitted local content plans according to the government’s requirement, failing to meet localization for key turbine components.

Local content requirements in Taiwan's offshore wind project selection

According to MOEA’s local content policy, Taiwan will develop its offshore local supply chain in three phases. In the first phase "the Lead Time"(before 2021), the developers have to meet local content requirement for tower, underwater foundation, electricity facility and marine construction, etc. In the Formal Phase I(2023 onwards) localization items include key components of wind turbine, submarine cables, marine constructions, vessels and etc. In Formal Phase-II (after 2024)all of the items mentioned in the pre-operation period and formal-phase I will be included plus gearboxes, power generators, converters and turbines blades.

Sources told WindTAIWAN that Taiwanese local companies have little interest in investing submarine cables due to lack of knowledge on cost structure and most of the local companies who have some MOU agreements with developers or system integrators have troubles finding space for building manufacturing site near major ports due to high lease rates.

“The real challenge has just begun,” said the source, as formal contracts with subcontractors are still pending and local companies finding investment higher than expected.

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