Episode 9 – Taiwan Insights, European Market Updates & Envision’s Ambitions – WindLogix Offshore Wind Podcast

Bahzad Ayoub   0:09
Welcome to episode 9 of Westwood Global Energy Group’s WindLogix Offshore Wind Podcast. I’m Bahzad Ayoub, Offshore Wind Manager at Westwood.

 

Now, the offshore wind sector continues to evolve at pace, and over the past few weeks, we’ve seen important developments across several key markets. From auction reforms and support mechanisms through to supply chain announcements.

Joining me once again to discuss the latest developments are Westwood senior offshore wind analysts Peter Lloyd Williams and Hui Min Foong.

Peter Lloyd-Williams   0:39
Hi, everyone.

Hui Min Foong   0:41
Hello, everyone.

Bahzad Ayoub   0:45
Now in today’s episode, we will begin with a roundup of key takeaways from the recent AWEA and Energy Taiwan industry events, before discussing the latest developments ahead of South Korea’s upcoming offshore wind auction. We will then turn to Europe, where we will examine Germany’s revised plans for its 2027 offshore wind auctions and discuss the changes to the support framework for the Utsira Nord Offtake in Norway.

We will then look at developments in New Zealand following the launch of an offshore wind feasibility permit application round. And finally, we’ll cover a supply chain story that has attracted significant attention across the industry, that being Envision’s announcement of its ambitions in the European offshore wind turbine market. So, lots to talk about in today’s episode.
Now let’s begin with some of the key industry events that have taken place since our last episode. Hui Min, you recently presented at AWEA’s 19th offshore Wind Day event in Taiwan and also attended the Energy Taiwan event. Can you give the listeners an overview of the two events?

Hui Min Foong   1:46
Yes, both events were a great opportunity to get on the ground and take pulse of where the industry sentiment is at. To remind, Taiwan is the fifth largest offshore wind market in the world as of 2025 and remains the most mature market in Asia Pacific outside of mainland China.

Energy Taiwan is Taiwan’s largest renewable energy exhibition, and this expo, together with the Asia Wind Energy Association’s 19th Asia Offshore Wind Day, drew a strong turnout from major industry players, both international and regional.

Bahzad Ayoub   2:24
Now, were there any particular messages or trends that seemed to dominate discussions across both events?

Hui Min Foong   2:31
Yeah, Taiwan has recently announced the bids for its round 3.3 auctions, which attracted bids from CIP and Orsted, both of which are well-established developers in the Taiwanese offshore wind market. There remain concerns in the wider industry about a temporary slowdown in Taiwan’s construction pipeline in the mid
in the late 2020s, close to 2030, although this also depends on where along the supply chain you sit. This is due to some of the earlier project cancellations from the round 3.1 and 3.2 auctions, which may cause that dip in activity before the round 3.3 projects come into play around 2030 or 2031.

Regardless, there is measured optimism around the round 3.3 bids and the upcoming planned round 3.4 and 3.5 auctions as well in terms of supporting the longer-term pipeline.

Bahzad Ayoub   3:27
And finally, what are the most significant takeaways for developers, the supply chain and also investors?

Hui Min Foong   3:34
Despite challenges and missed targets, Taiwan remains an established offshore wind market that has proven its ability time and again to deliver large-scale projects on the ground. So the 1GW Hai Long project, for example, has just completed installation of all 73 of its turbines.

Taiwan’s supply chain and related infrastructure is in place to support project delivery, and the corporate power purchase agreement-led market model has successfully supported several projects. However, continued heavy reliance on corporate PPA offtake may present challenges in terms of scalability,
especially as Taiwan looks to add 8GW of capacity through each of its planned round 3.4 and 3.5 auctions.

Bahzad Ayoub   4:23
Thank you for that great overview, Hui Min. Sticking within the APAC markets, let’s move across to South Korea, where there’s been further developments regarding the country’s next offshore wind offtake auction. So, Hui Min, can you provide an update on where things currently stand?

Hui Min Foong   4:42
Yeah, South Korea’s Ministry of Climate, Energy and Environment, that’s MCEE, has announced plans for its second-half of 2026, a fixed price offshore wind auction with more than 2GW of capacity expected to be on offer.

This follows a successful first half auction earlier this year, where nearly 1.8GW of capacity was awarded, very much aligned with the auction target. The auction notice this time is scheduled for release by late October or early November this year, with developer selections anticipated from December 2026.

This would then bring South Korea’s auction volume this year close to its 4GW target, which was set out in its mid to long term offshore wind roadmap, which was released in June.

Bahzad Ayoub   5:34
Now in terms of this round, have there been any notable changes to the auction framework or qualification requirements compared with the previous rounds?

Hui Min Foong   5:44
Yes, the auction framework has been revised and South Korea’s MCEE intends to continue using the current 20-year contract term as the standard, but it is also exploring options to extend the contract period and lower the price ceiling.

 

Emphasis on domestic content has been maintained, especially for turbines, with further details specified around technology transfer, licence production, and OEM production as potential options. Meanwhile, the business progress scoring component has been removed.

Bahzad Ayoub   6:19
And overall, what did these developments tell us about the direction of South Korea’s offshore wind market?

Hui Min Foong   6:27
For South Korea, emphasis on domestic, industrial and economic impact remains, which reinforce the market’s focus on reaping these benefits from the development of its offshore wind industry. South Korea is aiming to keep up the regularity of its offshore wind auctions, and the release of the market’s long-term roadmap
helps to improve visibility for investors amid a changing policy environment.

However, while South Korea has been successful in awarding capacity in its previous tenders, projects continue to face challenges and delays in moving from project award to construction phase.

And as South Korea pursues its growth ambitions with a 55GW auction capacity target over the next 10 years, it will need to balance domestic content objectives, project economics, and scalability, especially as it hopes to lower the auction price ceiling amid a changing policy background.

Bahzad Ayoub   7:29
Thank you for that, Hui Min. And yeah, as always, we will be keeping an eye on the next round of auctions in South Korea. And let’s see what happens with those.

 

Now, turning to Europe, Germany is a country that we’ve been discussing quite a lot in the podcast. And since the last episode, they have the government has announced revisions to its offshore wind auction plans for 2027.

So, Peter, can you please explain what changes have been proposed?

Peter Lloyd-Williams   7:57
Thanks, Baz. This concerns an effort by the Federal Rural Maritime and Hydrographic Agency to amend the 2025 Offshore Wind Area Development Plan. So that’s the area development plan from 2025. The primary change is to enlarge area N-10 in the North Sea and split it into three rather than two lease areas, which would be leased in 2027.

 

The overall capacity would remain the same at 2.5GW, but are over around a 33% greater area. N-10.3, the outright newly created zone, will be auctioned as a non-centrally investigated site under those rules.

The other amendments are to push out the timeline for the 2GW N-6.8 site out two years. So, startup is now targeted for 2035 and postponing the auction of sites N-12.4 and N-12.5 until a later date, originally scheduled for 2027.

Bahzad Ayoub   9:04
And what are the main drivers behind these revisions to the leasing schedule?

Peter Lloyd-Williams   9:12
So essentially the aim is to improve the value proposition of these sites for developers by improving expected electricity yields, which is something that industry has been advocating for. Wind wakes and cannibalization of energy yields have become an increasingly prominent topic in the German market over the past couple of years. This comes, of course, in the context of Germany’s failed 2025 offshore wind auction, when the N-10 sites were originally on offer. And it all comes, of course, alongside proposed forms to the reforms to the financial support system for offshore wind projects, which will probably see the introduction of some form of contracts for differences, CfDs.

Bahzad Ayoub   9:57
And how significant could these changes be for developers who are active in the German market?

Peter Lloyd-Williams   10:05
Well, they should theoretically support bidder interest in future lease sites in the area by essentially improving the operating conditions for developers. But we’ll have to see how developers react in the actual auction itself next year.

Bahzad Ayoub   10:20
Thanks for that Peter, yeah, we’ll keep an eye on the German auction as well, and what happens with them.

Now staying in Europe, Norway has also announced some changes to the support framework for the Utsira Nord floating offshore wind offtake. Peter, can you explain what changes have been made?

Peter Lloyd-Williams   10:42
Thanks, Baz. So, this comes in the context of a review of the Utsira Nord project, which was proposed by the opposition Conservative Party earlier this year and backed by the Norwegian Parliament, the Storting. While the changes to the support scheme have attracted most industry attention so far, this was actually a broader review that looked at things like the impact of Utsira Nord on Norwegian energy prices and how it will benefit the wider supply chain in Norway.

 

As for the support scheme itself, the total amount of financial support on offer will remain the same, NOK35 billion for 500MW, but the sum will be now paid out earlier in the project’s life cycle, which should benefit project economics. There’s also a reduction of the fine for a developer cancelling a project prior to FID.

Bahzad Ayoub   11:33
And how significant do you think these changes will be from the developer’s perspective?

Peter Lloyd-Williams   11:40
Well, the change in the phasing of the support payment should benefit project economics. Developers generally want to bring forward cash flows wherever they can, all things being equal. At the same time, the overall value of the support on offer is unchanged at NOK35 billion. So this is a tweak, albeit a helpful one.

Bahzad Ayoub   12:04
And the final question around this topic, how important is Utsira Nord for the future development of floating offshore wind, both in Norway and globally?

Peter Lloyd-Williams   12:14
So I think the importance of any one project in the global context is going to be limited when there are other similar developments being advanced elsewhere in the world. That said, the scheme is an important step for enabling the Norwegian supply chain to fully benefit from the floating wind pipeline, and I think you see a lot of that in the way that Review was advocated for by the various parties in the Norwegian Parliament.

Bahzad Ayoub   12:42
Thank you, Peter. Now turning to New Zealand, staying with you, Peter. Can you give us an overview around the recent launch of the offshore wind visibility permit application round?

Peter Lloyd-Williams   12:55
Of course, Baz. On the 19th of October, New Zealand’s Offshore Renewable Energy Feasibility Permit Application Round 2026 came into force, which calls for bids for two areas off the west coast of New Zealand’s North Island. Both areas cover a range of water depths and could require either fixed or floating foundations, with bids being submitted having to be submitted by the 19th of April next year.

Bahzad Ayoub   13:28
And what does this feasibility permit round tell us about where New Zealand is in its offshore wind journey?

Peter Lloyd-Williams   13:36
So this follows New Zealand passing its Offshore Renewable Energy Act in July of this year, which created a regulatory framework for developing offshore wind energy projects. The feasibility permit is the first step and runs for seven years with the ability to apply for a 40-year operating permit thereafter, and the framework deliberately mirrors the Australian regime in places.

Bahzad Ayoub   14:03
And finally, what do you think are likely to be the biggest challenges that developers will be facing at this stage?

Peter Lloyd-Williams   14:11
Obviously, there are the standard risks associated with de-risking the site, finding capable partners, both in the finance community, the supply chain, the developer community, managing community engagement and so on. But I think the greater unanswered question is what will be the approach to commercialisation? At this stage, the New Zealand government is not considering any form of financial support projects like a contract for difference or similar mechanism.

Bahzad Ayoub   14:40
Thank you, Peter. So quite early days for New Zealand, but interesting to see what happens there.

 

Now, moving on to our final topic today, we will be looking into supply chain. Particularly, we will be discussing Envision, who are a turbine OEM, and they recently made an announcement regarding plans for entering the European offshore wind market. So Hui Min, can you walk us through what was announced?

Hui Min Foong   15:07
Yes, this was an interesting announcement from Envision. They introduced a new 16.7MW turbine model, targeting opportunities across several European offshore wind markets. And the design is derived from the company’s Model Z turbine, which has previously been deployed in M ainland China.

According to Envision, the turbine has been designed to meet European offshore operating conditions and regulatory requirements. And Envision also focuses particularly on highlighting the turbine’s potential to support reductions in levelized cost of energy, so LCOE.

Bahzad Ayoub   15:47
And in terms of envision strategy, how do you think it compares based on what they’ve stated so far with the approach that has been taken by Ming Yang in trying to enter the European market?

Hui Min Foong   16:02
Well, Envision’s approach appears to be product-focused at this stage, concentrating on promoting its technology. Possibly this could reflect a more cautious approach to entering the European market after learning from the political backlash that was faced by Ming Yang.

Bahzad Ayoub   16:22
Thank you, Hui Min. And finally, Peter, do you have any thoughts yourself around this topic?

Peter Lloyd-Williams   16:28
I think Bahzad will certainly be interesting to see how things develop. Many of the security concerns, I think, seem likely to remain the same.

Bahzad Ayoub   16:38
Thank you for that, Peter. Yeah, still quite early days regard that announcement and what could follow, but still a very interesting announcement that has been made.

 

Now, that’s all the time we have for today’s episode. A big thank you as always to both Peter and Hui Min for joining me and providing the insight on the latest developments shaping the offshore wind industry.

And as always, thank you to everyone for listening to us. We appreciate you taking the time to join us and hope you found today’s discussion useful.

 

Again, as usual, for any analysis, data, or market intelligence covering offshore wind, please visit our website at westwoodenergy.com.

 

Until the next episode, thank you all for listening to the Wind Logics Offshore Wind Podcast. I’ve been Bahzad Ayoub. Take care and goodbye.

 

 

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