EU disputes Taiwan’s local content rules for offshore wind

The EU on Friday asked for dispute settlement consultations at the WTO, challenging Taiwan’s local content requirements for offshore wind projects.

According to the EU, Taiwan’s local content eligibility and award criteria in offshore wind capacity allocation auctions violate its WTO commitment to not discriminate against imported goods and services.

In a statement, the EU Directorate-General for Trade said that Taiwan’s local content criteria have a negative impact on a sector of strategic importance to the EU, and also lead to efficiency losses and price increases in Taiwan. The EU hopes that, given its close relationship with Taiwan, a mutually-satisfactory solution can be found during the dispute settlement consultations. These consultations mark the first step in WTO dispute settlement proceedings. If no solution is reached within 60 days, the EU can ask the WTO to set up a panel to rule on the matter.

In its request for consultations, the EU notes that Taiwan started to develop offshore wind generation capabilities in 2013 and has so far launched three capacity allocation rounds. The third one, initiated in 2021, seeks to allocate 15 GW through auctions, also called phases, up to 2030. Phase 3.1 awarded 3 GW and in November 2023 the selection mechanism for phase 3.2 offering up to 3 GW of capacity was announced. Applications were due by April 10, 2024.

The EU contests the localisation requirements included in the governance framework of Phase 3.2.

Taiwan recently released its applicant rankings for the country’s 3.2 offshore wind tender.

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