[Energy-topia] Offshore Wind Power Special Act Should Be Promptly Reintroduced in the 22nd National Assembly

TSMC, a semiconductor foundry company in Taiwan, is often compared to Samsung Electronics not only in semiconductors but also in the energy sector. This is because few industries require as much energy as the semiconductor industry. The newly constructed semiconductor mega cluster in Yongin is said to require 10 gigawatts (GW) of power. How to secure such enormous power is always a matter of international interest.

Moreover, semiconductor companies face international demands to switch to eco-friendly energy to achieve carbon neutrality by 2050. The global nonprofit organization The Climate Group is promoting the RE100 campaign. Companies joining RE100 must produce their products using only renewable energy such as solar and wind power by 2050. Samsung Electronics, SK Hynix, and TSMC have all joined RE100.

However, TSMC announced last year that it would advance its RE100 achievement target to 2040, ten years earlier. The reason it could set such an aggressive goal is offshore wind power. TSMC has been signing large-scale direct power purchase agreements (PPAs) with offshore wind power operators one after another. It is known that TSMC purchases 98% of Taiwan’s renewable energy certificates (RECs).

This is possible because the Taiwanese government is driving offshore wind power development at the national level. The Taiwanese government plans to develop 20.6 GW of offshore wind power by 2035 in three phases. Currently, the second phase project is underway.

To rapidly develop offshore wind power, the Taiwanese government directly selected 36 sites and required operators to participate in bidding. Since operators do not bear the burden of site selection, the development speed has increased. To facilitate operators, the government also unified the administrative window.

South Korea, surrounded by the sea on three sides, also has high expectations for offshore wind power. However, the situation is quite different from Taiwan. It takes an average of more than 68 months to complete site discovery and permitting procedures. This assumes smooth progress, and the reality is even more challenging.

Currently, it is known that it takes about 10 years to develop an offshore wind farm domestically. Related ministries are divided among the Ministry of Trade, Industry and Energy, Ministry of Oceans and Fisheries, Ministry of Environment, and Ministry of National Defense. Operators must visit each ministry individually to complete the permitting process.

In particular, since operators directly develop offshore wind sites, issues with local community acceptance persist. The complex permitting procedures and long development periods contribute to raising the cost of offshore wind power generation. Ultimately, this burden returns to the public and companies in the form of higher electricity bills.

Due to sluggish offshore wind power development, related industries are also struggling. Even if equipment or parts are developed with effort, there are few suitable sales channels. While the global offshore wind market is rapidly growing, the domestic wind power industry continues to lack competitiveness.

The Offshore Wind Power Special Act for rapid development was discussed in the 21st National Assembly but ultimately did not pass. This special law included provisions for the government to directly select sites and unify the permitting window, similar to Taiwan.

The transition to eco-friendly energy is directly linked to corporate international competitiveness. Global clients are demanding Scope 3 emissions reductions, requiring even partner companies to use renewable energy. Although our government proposes CF (Carbon-Free) 100 as an alternative to RE100, it has not yet been widely recognized internationally.

The term of the newly formed 22nd National Assembly begins on May 30. When it comes to energy issues, there should be no division between ruling and opposition parties. We hope that the Offshore Wind Power Special Act will be promptly reintroduced in this National Assembly.