Dr. Yuan-Liang HsuAssistant General Manager, Wind Power Construction Department

China Steel Corporation

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Establishment and Current Status of Offshore Wind Turbine Component

Supply Chain in Taiwan

1. Status of Global Wind Power Development2. Policies and Planning of Taiwan’s Offshore Wind

Power Development3. Status of the Offshore Wind Power Components

& Parts Industry Development in Taiwan4. Conclusions & Recommendations

1. Status of Global Wind

Power Development

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Global Wind Power Installation Capacity

➢ Wind Power Capacity Worldwide Reaches 593.5 GW with 53.9 GW added in 2018. Wind power has become the most mature renewable energy.

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Source: GWEC Wind Statistics, Feb. 2019

➢ The global accumulated offshore wind power installation capacity reach 23.3GW at the end of 2018. The growth rate is getting higher and reaches 23.9%.

Global Offshore Wind PowerInstallation Capacity

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Source ：GWEC Wind Statistics, Feb. 2019

Source：Statista, 2019

➢ This diagram shows that 78.6% of the installed capacity of offshore wind power concentrates in Europe. Whereas, other areas including Taiwan are still in the early development stage.

Offshore Wind Power Installation Capacity by Country

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➢The development of offshore wind power in Europe demonstrates a “gradually acceleration” trend. It takes pretty long time to build up the infrastructure and industry capacities of offshore wind power.

Progress of Offshore Wind Power Development in Europe

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Source: WindEurope

2. Policies and Planning of

Taiwan’s Offshore Wind

Power Development

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Taiwan Strait Owns Abundant Wind Resources

➢According to research of 4C Offshore, Taiwan Strait possesses 16 of the top 20 offshore wind farms in the world. It is a great opportunities but also has challenges to develop OWP in Taiwan.

“Wind Collection effect” results from the tunnel configuration formed by the Central Ridges of Taiwan and Wu-Yi mountain in China.

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Source : Global Views Monthly

Wu-Yi mountain

Central

Ridges

10 Year Global Wind Speed Rankings, Source: 4C Offshore

Rank Name Country Sea Speed(m/s)

1 Putian Pinghal bay offshore demonstration Project phase 1 Taiwan Strait 12.04

2 Changhua - Stage I – Taipower Taiwan Strait 12.02

2 Changhua - Stage III – Taipower Taiwan Strait 12.02

2 Xidao-CIP c Taiwan Strait 12.02

2 Zhangfang-CIP Taiwan Strait 12.02

6 Hanbao-TGC Taiwan Strait 11.94

6 Changhua – Stage IV – Taipower Taiwan Strait 11.94

6 Changhua – Stage V – Taipower Taiwan Strait 11.94

6 Changhua – Stage VI – Taipower Taiwan Strait 11.94

6 Changhua – Stage II – Taipower Taiwan Strait 11.94

6 Changhua Offshore Pilot Project(COPP) – TGC Taiwan Strait 11.94

6 Fuhai Offshore Windfarm - TGC Taiwan Strait 11.94

6 Fuhai Test Zone - TGC Taiwan Strait 11.94

14 NW1 – Medium Term Option for Offshore WindDevelopment

Scottish Continental Shelf (Hebrides) 11.91

15 NW2 – Medium Term Option for Offshore WindDevelopment

Scottish Continental Shelf (Hebrides) 11.86

16 Yunlin - TGC Taiwan Strait 11.80

16 Yunlin – Star Energy Taiwan Strait 11.80

16 Miaoli – Hai Ding Taiwan Strait 11.80

16 Yunlin – Taipower Taiwan Strait 11.80

20 NW3 – Medium Term Option for Offshore WindDevelopment

Scottish Continental Shelf(Hebrides) 11.79

◆Onshore first and then Offshore

◆Offshore wind power: Demonstration Incentive Program(DIP) first, Zone Application for Planning(ZAP)2nd, followed by Zonal Development(ZD) phase.

➢ Short term (DIP): 238MW by 2020

➢ Midterm (ZAP=Selection+Auction): 5.5GW by 2025

➢ Long term (ZD): 10~12GW by 2035; 15~17GW by 2050

◆Taiwan will develop both offshore wind power and wind power industry via the implementation of strictly regulated localization policy. It hopes to create a green energy industry cluster with output value of nearly 200 billion NTD per year.

Strategies and Goals of Taiwan’s Wind Power Development

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Capacity Awarded for Each Wind Farm-Chronological

Short &Midterm

Developer Wind Farm (#)Capacity Awarded

(MW)

Grid Connection

Year

Year capacity accumulated

(MW)Connection location

Capacityaccumulated

(MW)

DIPSwancor Formosa 1 128 2019 128 Yingpan D/S

238TPC TPC Chang-Hua I 110 2020 110 Dacheng

Selection(ZAP)

Swancor & Macquarie

Formosa 2 (#5&#6) 378 2020738

Yingpan D/S

3836

WPDYun Neng 360 2020 Sihu

Li Wei (#2) 350 2021

1698

Tangwei D/S

Ørsted Great Changhua ES (#15) 605.2 2021 Chang One A

WPD Yun Neng 348 2021 Taixi D/S

Ørsted Great Changhua WS (#14) 294.8 2021 Chang One A

CIP

ChungFang (#27) 100 2021 Chang One A

ChungFang (#27) 452 2023 452 Chang One B

Xidao 48 2024

948

Chang One B

CSC Chong-Neng (#29) 300 2024 Chang One B

TPC TPC Chang-Hua II (#26) 300 2024 Chang One B

Yushan & NPIHai-Long II (#19) 300 2024 Chang One B

Auction(ZAP)

Hai-Long II (#19) 232 2025

1664

Changgong

1664Ørsted

Hai-Long III (#18) 512 2025 Changgong

Great Changhua WS (#14) 337.1 2025 Changgong

Great Changhua WN (#12) 582.9 2025 Changgong

9 Developers, 15 Wind farms from 2019 to 2025 Total 5738

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➢DIP: 238MW

➢Selection(ZAP): 3836MW

➢Auction(ZAP): 1664MW

◆Estimate to complete grid

connection of 5738MW by the

end of 2025.

➢ Taoyuan, Hsinchu and Miaoli

offshore area: 856MW

➢ Changhua and Yunlin offshore

area: 4882MW.

Capacity Awarded for Each Wind Farm-Geography

Miaoli

Taoyuan

Hsinchu City

Changhua

Yunlin

Hsinchu

County

Formosa #5-6 Swancor & Macquarie

378MW (2020)

Yun Neng_WPD360MW (2020)348MW(2021)

Li Wei #2_ WPD

350MW(2021)

Great Changhua WS

#14_Ørsted294.8MW(2021)

ChungFang#27_CIP100MW(2021)452MW(2023)

Xidao_CIP48MW(2024)

Chong-Neng#29_CSC300MW(2024)

TPC#26_TPC300MW(2024)

Hai-Long II #19Yushan&NPI

300MW(2024)

Hai-Long III#18Yushan&NPI

512MW(2025)

Great Changhua ES

#15_Ørsted605.2MW(2021)

Hai-Long II #19Yushan&NPI232MW(2025)

Great Changhua

WS#14_Ørsted337.1MW(2025)

Great Changhua WN

#12_Ørsted582.9MW(2025)

Formosa demo_ Swancor

128MW(2019)

TPC demo_ TPC110MW(2020)

➢ Increase localization items gradually from pre-stage, PH-1 and PH-2.

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The Demand Localization Items at Various Phases Time grid connection

Year2021~2022

Year2023

Year2024~2025

Phase Pre-Stage (10 Items) Phase 1 (10 Items) Phase 2 (7 Items)

Localization items

➢ Tower➢ Foundation➢ Electrical Components:

1. Transformer2. Switchgear3. Distribution panel

The above are on shore electric equipment.

➢ Marine Engineering planning, design, construction, supervision, and manufacturing：1. Construction and supervision of

investigation, cable laying, exploration, etc. Ship and machine tool planning design and safety management.(BOE)

2. Ship Building：provide the construction ship industry supply chain for new ships or ship restoration (including the ships for investigation, support, seabed preparation, transportation and cable laying.)(IDB)

➢ Wind Turbine Components:Rotor Nacelle Assembly, Transformer, Distribution panel, Uninterruptible Power Supply, Spinner, Cable, Rotor Hub, Bolts

➢ Submarine High Voltage Cable➢ Marine Engineering planning, design,

construction, supervision, and manufacturing：1. Construction and supervision of tower,

foundation, etc. Ship and machine planning design and safety management.(BOE)

2. Ship Building：provide the construction ship industry supply chain for new ships or ship restoration (including the ships for transportation and construction)(IDB)

➢ Wind Turbine Components:Gearbox, Generator, Power Converters, Rotor Blade &Epoxy Resin, Nacelle Cover, Nacelle Bed Frame/Plate

➢ Marine Engineering planning, design, construction, supervision, and manufacturing：Construction and supervision of wind turbines and others. Ship and machine tool planning design and safety management. (BOE)

➢ Pre-Stage items for the year 2021 and 2022 ➢ Pre-Stage items for the year 2021 and 2022

➢ Phase 1 items for the year 2023

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The Evolution of Localization1. From simple to complex, from periphery to core.

• Pre-stage: tower & foundation.• Phase 1: transformer, switch gear, cable, fastener, hub, nose

cover, etc..• Phase 2 : blade, main frame, generator, gearbox, nacelle

cover, etc..

2. From component to raw material. • Generator: electrical steel, hard magnets, etc..

• Blade: resin, glass fiber, carbon fiber, etc..

3. From OEM to ODM and to OBM.4. Root in Taiwan, extend to Asia.

3. Status of the Offshore Wind Power Components & Parts Industry Development in Taiwan

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➢To assist Wind-Team members in becoming the global suppliers by leveraging the policy tool of “exchanging technology by market” and the advantage of Taiwan’s manufacturing industry of high quality and low cost.

Wind Turbine System Suppliers

Joint Research

among Multi

Resources

Local ComponentMakers

Strategy of Wind-Team Alliance

Technology Transfer from Global Leaders

Exchanging

Tech. by Market

Becoming

Global Suppliers

Policy Tool

SwitchITRI MIRDC

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Gap Filling Implement-

ation

• Survey team was organized among WTS Suppliers, CSC and MIRDC

• Facility Capability• Technology deficit• Testing & Inspection

Capability

• Facility Investment• Technology RD and

Transfer • Certification system

Establishment

• Develop Components with advantages in QCDS : Quality, Cost, Delivery, Service

Action Plan

to Fill Gap

Capability Gap

Identification

Factory

Survey

Procedures of OWP Component Supply Chain Establishment

➢Following the technical instructions of Wind Turbine Suppliers, the top three phases have been accomplished, and it enters into the final phase of gap filling implementation. It will be executed auxiliary with a R&D project supported by Taiwan government and research institutes.

➢The alliance of 58 companies will invest 27.6B NTD for establishing production lines and 1.18B NTD for research and technology transfer.

Sept. 2016

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Nacelle Components Supply ChainBlade(2024) 2020

Tien Li

SWancor、TGI、Formosa Plastics、Boltun、Wah Lee.…

Hub(2023)

Bed Frame(2024)2021

Yeong Guan

Sydkenn、Faith Metal、Kao Koan Enterprose、CHIN FUNG SILICA SAND、海威…

Spinner(2023)

Nacelle Cover(2024)Evaluation

Atech Composites

SWancor、Eternal Materials、Ahlstrom、ICYMAX…

Gear Box (2024) Evaluation

Formosa Heavy Industries

Nan Lung、Taiwan Cheng Sheng Metal、世坤、振霖…

Pitch System Evaluation

Jufan Industrial

Tongyou、Golden Asia Industrial、Parjet、億益、允宏、建興…

Yaw Motor Evaluation

TECO、Cheng Chang、Delta Electronics

CSC、Walsin Lihwa、Yu-Lin、Nan Lung、Kaoten Scientific、New Jeida、Prosperity、日上…

Generator (2024) 2022

TECO、Tatung

CSC、Walsin Lihwa、Yu-Lin、Nan Lung、Kaoten Scientific、New Jeida、Prosperity、日上…

Passive Cooling

System

Helicopter

PlatformMaintenance

Crane

Lubrication

System

Nacelle

StructureNacelle

Partition

Tower (2021) 2020

ChinFong/CS Wind

CSC

Bolts (2023) 2020

Boltun、Chun Yu

CSC、AzureWave、SPRING PROFIT

PLATING WORK、A-OKAY.

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ComponentsProduction

year

Tier1 Supplier

Tier2 Supplier

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Air

Conditioning

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PCM Components Supply Chain

UPS(2023) Evaluation

Delta Electronics

CSCC、Yeong Long Technologies、E-ONE

MOLI ENERGY、Inner-Energy…Transformer (2023) 2020

Shihlin Electric、Fortune Electric、Allis Electric

Tung Chen、NIPPON TEEL&SUMITOMO METAL、Total、益州、英鋼、沿羽、大宇、日山、中榮…

Cable(2023) Evaluation

Taya、Walsin Lihwa

SINBON…

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Components Production year

Tier1 Supplier

Tier2 Supplier

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12

14

13

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Control PanelAuxiliary

Transformer

PCM Cooling

System

Back-up PCS

Maintenance

Lifter

Switchgear(2023) Evaluation

Nan Ya Plastics、Shihlin Electric、Allis Electric、Tatung

Schneider Electric、ABB、Fuji、CHALLENGE INDUSTRIAL、Shihlin Electric、Tatung

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PCS(2023) Evaluation

Delta Electronics

Infineon 、Schneider Electric、Mitsubishi、TOSHIBA…

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The Development Components of Wind-Team AllianceStage Component Tier 1 maker (24) Tier 2 maker (38)

Pre stageOffshore FDN SDMS, Century Steel CSMC、RONG SHENG、FEMCO、CTCI、CSSC、WANCHI、MRY、CSBC、

CSAC、Fer-Mo

Tower Chin Fong/CS Wind CSC

Phase 12023

Nacelle assembly TECO -

Transformer Shihlin , Fortune, Allis Tong Cheng, YAMA-SUN, Chung Rung Insulators

Switch gear NPC, Shihlin , Tatung, Allis, -

UPS Delta CSCC, Yeong Long Technologies, E-ONE MOLI ENERGY, Inner-Energy

Spinner Atech Composites Swancor, TGI, Formosa Plastics

Cables Taya , Walsin Lihwa Sinbon

Hub YGG, TCS -

Fastener Boltun, Chun Yu CSC, AzureWave, SPRING PROFIT PLATING WORK, A-OKAY

Sea Cables Taya

Phase 22024~2025

Gear box FHI Nan Lung, 世坤, 振霖, Taiwan Cheng Sheng Metal

Generator TECO, Tatung CSC, HIMAG, MagnPower

Power conversion Delta -

Blade & Resin Tien Li Swancor, TGI, Formosa Plastics

Nacelle cover Atech Composites Swancor, TGI, Formosa Plastics

Bed frame YGG, TCS, YJF -

Addition

PCM TECO -

Yawing system SOLPOWER, TECO, Delta TECO, FHI

Pitching system JUFAN Tong you, Golden Asia, Parjet, 億益, 允宏

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➢ 20 components, 24 Tier 1 makers, 38 Tier 2 makers, 58 makers in total

4. Conclusions &

Recommendations

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Policy Recommendations and CSC’s Future Efforts

➢ It is our expectation that the government will intensify the implementation of its localization policy to help the industry to obtain advanced experience and technology so as to establish Taiwan’s offshore wind component manufacturing industry .

➢ Market demand and economic feasibility are two major factors to be considered for an investment. The next stage regional development of offshore wind farm should offer sufficient capacityof installation and localization demand in order to provide the needed momentum for industry further development.

➢ CSC will continuously act a role as facilitator and in collaboration with MIRDC to assist local component manufacturers to improve their QCD capabilities (high quality, low cost and short delivery time) so that they can be integrated into global supply chain.

Thank you for your attention

and comments are welcomed.

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