Abstract
In 2007, the Government of Taiwan began to launch a policy and legal framework for the development of offshore wind power. Since 2016, the government has employed the highest feed-in-tariff （FIT） in the world, and attracted more than 10 GW applications; it is scheduled to reach an installation capacity of 5.7 GW by 2025, making it the most ambitious scheme in the history of offshore wind power. However, most projects face serious project delay and cost overrun. This has been compounded by news of bankruptcy concerns, the inability to secure bank loans, and the release of 100% of shares from the pioneer offshore wind power developer in Taiwan. These developments have cast a shadow over the sustainability of the policy and legal framework for offshore wind power. This article provides an in-depth, critical review of the evolution of offshore wind power framework since 2007. Specifically, three key offshore wind power phases－Phase I: Demonstration, Phase II: Zones of Potentials, and PhaseIII: Zonal Development－are evaluated. The findings reveal that, first, for Phase II projects benefited by favourable incentives, owing to endless red tape and local content requirement, project delay and cost overrun are inevitable. This will also negatively affect developers, balance sheets. Second, for Phase III projects with NT$ 0 or 0.01 tendering price and for Phase II projects subject to the tendering scheme, securing loans will be challenging, particularly with rising tensions between Taiwan and Mainland China over the Taiwan Strait. The crux of the issue is the lack of a well-formulated policy and well- established legal framework. From a legalistic point of view, the current offshore wind power regime may be least bound by rule of law among all Taiwan industries since the abolishment of martial law and reforms under the Administrative Procedure Act promulgated on 3 February 1999. Very few legal experts, including the author, had raised concerns thereof at the time, urging in favour of special legislation on offshore wind power to deal with these issues and vociferously challenging the government for such Schwarzwald （Black Forest） in the Rechtsstaat （Rule of Law） country. Yet without a strong lobby of offshore wind power developers and government awareness （despite the legal background of the Minister of Economic Affairs）, the situation seems unlikely to improve. It is a concern that this turmoil in the offshore wind power industry may lead to the first offshore wind bubble in the world.