The Asia-Pacific (APAC) offshore wind industry is currently at a crossroads. Taiwan, once a leader in the region, is feeling the heat of competition as Japan and South Korea quicken their pace. At the 13th Asia Offshore Wind Day, industry experts warned that the region needs to tackle several key challenges to maintain its edge over European wind projects.
According to Gero Tschierschke, Head of Business Development at Offshore Siemens Gamesa, there’s a notable shift in the APAC landscape. By 2028, Japan and Korea are expected to match Taiwan in annual installations. This change is prompting major industry players like Siemens Gamesa to adopt a regional strategy, seeking ways to share supply chains, manufacturing capabilities, and talent among Taiwan, Japan, and Korea.
Currently, Taiwan faces significant hurdles, including infrastructure shortages and a lack of qualified personnel, as pointed out by Javier Magro, CEO of CDWE. As Taiwan’s pivotal Round 3 projects roll out, its ability to maintain leadership is uncertain, especially with Japan and Korea implementing developer-friendly policies with annual auction systems that promise stability.
Sean Conaty from Nishimura & Asahi highlighted the varying localization requirements across these countries. Taiwan allows developers to earn up to 120 points from local sourcing, while Japan’s less stringent system allocates a maximum of 40 points. This flexibility not only reduces risks but could potentially phase out local content obligations, allowing Japan to have a more adaptable framework.
South Korea is not far behind with ambitious plans for floating offshore wind technology. Projects of 500 to 700 MW are on Korea’s horizon, showcasing its bold initiative. Despite this, the APAC region still trails Europe in project sizes. Matt Bowden of Cadeler emphasized that European projects greatly outsize recent APAC awards.
To bridge this gap, Bowden suggests developers consider linked projects to mimic the scale seen in Europe, thereby increasing competitiveness. He cited industries like telecommunications as examples of successfully pooled resources, suggesting that similar cooperation in offshore wind could enhance operations and maintenance efficiency.
Embracing strategies like winter installations could further bolster efforts, as evidenced by past successes in Taiwan, where approximately 20% of turbines have been installed in the winter months. Moreover, a call for regional collaboration could open up new avenues for cost savings and stronger bargaining positions.
Despite the hurdles of contractual and operational complexities, the potential for significant benefits through integrated efforts is undeniable. The coming years will not only test Taiwan’s ability to retain its leadership but will also play a crucial role in determining whether Japan and Korea can turn their progress into dominance.
As the APAC offshore wind sector evolves, it becomes increasingly clear that resilience and regional cooperation will be crucial to thriving in this fiercely competitive international industry. The APAC market is no longer an isolated player but an essential competitor on the global stage.
