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The Danish wind power leader Ørsted recently announced its withdrawal from offshore wind projects in Taiwan, a decision affecting approximately 470 employees. The primary reason for this withdrawal is attributed to changes in the market environment and related policies in Taiwan, which have rendered the anticipated economic benefits unachievable.
【Background Information】
Ørsted initiated its offshore wind energy plans in Taiwan several years ago, intending to become a key driver of energy transition in the region. However, over time, competitive market conditions and regulatory changes have posed significant challenges to the project.
Recently, the company stated that due to rising costs and decreasing returns, it would not be able to continue with its offshore wind plans in Taiwan. This news undoubtedly has a substantial impact on Taiwan's renewable energy sector, as Ørsted’s involvement was seen as a crucial anchor for encouraging other foreign investments in the market.
Before the withdrawal, Ørsted had attempted to engage in dialogues with the local government to seek policy support and cooperation in improving the operational environment but was unsuccessful. This recent layoff has raised concerns regarding Taiwan's challenges in attracting international energy investment, especially regarding the potential impacts on large-scale projects.
With Ørsted's withdrawal, Taiwan's future development strategy for offshore wind power will need reevaluation and adjustments, particularly on how to attract more foreign investment and technology into the market. Furthermore, experts warn that the government must adopt more flexible policies to address the demands and challenges of emerging markets to maintain a foothold in global energy transitions.