EU Disputes Taiwan’s Offshore Wind Local Content Regulations

July 29, 2024, by Adnan Memija

The European Union (EU) has requested dispute settlement consultations at the World Trade Organization (WTO) concerning Taiwan’s use of local content criteria for offshore wind projects.

In 2021, Taiwan’s Ministry of Economic Affairs (MOEA) published a localisation policy for the first phase of its Round 3 offshore wind tenders which was completed in December 2022.

According to local regulations, at least 60 per cent of the components used in offshore wind farm projects must be procured locally, unless the Taiwanese supply chain is unable to supply the necessary products or services.

However, in the view of the EU, Taiwan’s local content eligibility and award criteria in energy capacity allocation auctions for offshore wind farms are inconsistent with its WTO commitment to not discriminate against imported goods and services.

The dispute settlement consultations that the EU is requesting are the first step in WTO dispute settlement proceedings. If they do not lead to a satisfactory solution within 60 days, the EU can request the WTO to set up a panel to rule on the matter, according to the press release.

Taiwan already published a response on 26 July and said that it will participate in the talks with the EU to resolve the trade dispute.

Taiwan is currently targeting to install 13 GW of offshore wind by 2030 and up to 55 GW by 2050.

In April, the country’s first far offshore and large-scale wind project was inaugurated at an event in the port of Taichung. With a total installed capacity of 900 MW, Greater Changhua 1 and 2a, developed by Ørsted, was fully connected to the grid.