EU resolves dispute over Taiwan’s offshore wind tenders

The EU and Taiwan have resolved a dispute at the World Trade Organization (WTO) regarding Taiwan’s offshore wind auctions, with Taiwan committing to no longer include localisation requirements in future allocation rounds.

In addition, Taiwan has committed to introducing greater flexibility with respect to the winning projects from the latest auction, which will address past implementation challenges faced by offshore wind developers, including those from Europe, the EU Directorate General for Trade announced on Friday.

The EU requested WTO consultations on Taiwan’s offshore wind auctions in July. The parties have now reached an understanding on the dispute. The terms of the understanding were set in letters exchanged between Sabine Weyand, the director-general for trade in the European Commission, and Taiwan’s Minister of Economic Affairs Jyh-Huei Kuo.

The EU sees addressing barriers in Taiwan’s offshore wind market as crucial for a sector of strategic importance.

Sabine Weyand’s letter says: “From your letter, we understand that your government’s primary objective concerning Phase 3.2 is to ensure grid connection as scheduled. We further understand that with a view to achieving this overarching objective, your government is committed to expanding implementation flexibility. Thus, we understand that the review scheme you envisage to implement will provide developers with more flexibility, compared to previous rounds, to modify their industrial relevance plans, where they encounter difficulties.”

Concerning future rounds, Taiwan’s commitment is to not include localisation requirements, either as eligibility conditions or as award criteria.

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