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To mitigate carbon emissions, Taiwan targets ¡°net-zero emissions by 2050¡± by decarbonising its electricity supply. Specifically, the government aims to source 60% to 70% of total electricity generation from renewable energy, with 20% to 27% from thermal power generation utilising carbon capture technology.

Focusing on offshore wind and solar power, the policy framework stipulates an installed capacity of 29GW of renewable energy by 2025, rising to 40-55GW by 2050. Concurrently, the government is actively promoting alternative energy sources including geothermal, biomass, ocean energy and hydrogen energy.

To strengthen the legal framework and ensure power stability while reducing emissions, the Renewable Energy Development Act (REDA) has been continually amended in 2019, 2023 and 2025.

To meet environmental, social and governance (ESG) standards and corporate demand for electricity purchase, the government is also proactively advancing green electricity development through establishing a green electricity trading mechanism, which encompasses amendments to the Electricity Business Act and the REDA. These amendments will facilitate the provision of electricity to end users by renewable energy generators or retailers.

Offshore wind power

The government has delineated offshore wind power development into three distinct phases: the Demonstration Phase (phase I), Potential Sites Phase (phase II) and Zonal Development Phase (phase III).

During phase I, two demonstration projects were successfully developed, between 2013 and 2021, resulting in an installed capacity of about 237MW. In phase II, the Ministry of Economic Affairs (MOEA) allocated grid capacity to a total of 16 projects, including those developed in two stages, culminating in a total installed capacity of about 5.5GW. Notably, 10 of the 16 projects achieved commercial operation between late 2023 and the end of 2025.

Regarding phase III, the government has promulgated a set of regulations governing the allocation of an additional 15GW of offshore wind energy capacity, scheduled for commissioning between 2026 and 2035. Under these regulations, 9GW will be allocated across three phases (designated as R3.1, R3.2 and R3.3) to meet grid connection targets between 2026 and 2031, while the remaining 6GW is slated for commissioning between 2032 and 2035.

Through auction processes, about 3GW of grid capacity was awarded to five projects in R3.1, with an additional 2.7GW awarded to five more projects in R3.2. Formal announcement of the R3.3 auction is expected sometime in the first quarter of 2026.

From phase II, the government launched a set of local content programmes requiring offshore wind developers to commit to engaging with and procuring products and services from local suppliers. The local content requirements became more complex and stringent in R3.1 and R3.2, encompassing localised components including wind turbines, cables, electricity facilities, foundations, vessels and a range of local services.

However, following submission of auction proposals by R3.2 developers in April 2024, the EU requested dispute settlement consultations at the World Trade Organisation (WTO) regarding Taiwan¡¯s local content criteria for offshore wind projects. Subsequently, the EU and Taiwan government reached an understanding concerning the WTO dispute ¨C with the government confirming that no local content requirements will apply to R3.3 or any future offshore wind projects.

However, since the administrative contracts have been signed for R3.1 projects, developers remain obliged to comply with their stipulated local content commitments.

Regarding R3.2 developers, the MOEA issued guidelines to ease review standards for relaxing local content commitments. Specifically, developers may apply for exemption from the commitment if the quantity or delivery schedule of locally produced or supplied products cannot meet the grid connection deadline in the agreement, expected to be the end of
2028 or 2029.

In respect of the R3.3 auction, draft auction rules announced in January 2026 contain the following key features:

1. No mandatory local content requirements but ESG commitments should be provided, with their scope and actual coverage yet to be announced by the MOEA in the formal auction rules.
2. Bidders will be evaluated on technical and financial capacity (minimum 70-point threshold). In the event of a tie, priority will be determined by factoring in the developer¡¯s past performance in Taiwan. A positive track record will enhance scores, while past defaults, delays or poor performance in previous local content commitments will serve as negative indicators. This mechanism is intended to drive the timely and efficient performance of R3.1 and R3.2 projects.
3. To incentivise accelerated construction, ¡°early-bird incentives¡± have been introduced where projects completed ahead of schedule will be granted a corresponding extension of the term for power sales.

Solar power

Land is a critical factor in the development of large-scale solar projects. Most ground-mounted solar project sites are in non-urban areas. Under the Regional Plan Act (RPA), development of solar projects can only occur on land with permissible zoning and categorised with the required Land Usage Permit according to various usage restrictions outlined in the RPA and its ancillary regulations.

If certain conditions are met, developers must apply for a conversion of land categories and/or zoning to proceed with ground-mounted solar projects.

The government initially planned to reorganise land categorisation by implementing a new set of rules to replace the RPA, known as the Spatial Planning Act (SPA), expected to take effect on 1 May 2025. However, to provide local governments and industries with additional time to adapt to the SPA, the Legislative Yuan postponed implementation of the functional zone regime until 30 April 2031. As a result, the original land conversion regime under the RPA continues to be applicable.

To promote solar projects, the MOEA and the Energy Administration (EA) have actively supported aqua-solar and agri-solar initiatives in the past two years, as well as solar projects that incorporate battery energy storage systems (Solar BESS).

For aqua/agri-solar projects, there are two main challenges:

1. 1. Due to certain government restrictions, project companies with majority foreign ownership must collaborate with local land management consultants to obtain and maintain the Land Usage Permit; and
   2. The generation project company is required to ensure that fishery or agricultural production continues alongside the operation of the solar projects for a minimum of 20 years.

Regarding Solar BESS projects, the MOEA and the EA will issue annual guidelines for bidding on these projects. The government offers two key incentives to encourage their development.

First, there are differentiated tariff rates for power discharged by the battery energy storage systems (BESS) compared to that generated by the solar project, with more favourable rates applied to the BESS. Second, successful bidders for grid capacity associated with the BESS may opt to develop a new project with priority rights, equivalent to the capacity of the BESS.

Furthermore, the MOEA will continue to secure land through inter-agency collaboration while increasing installation capacity by pursuing a three-pronged approach to promote solar projects, which includes:

1. 1. Government-to-government coordination mechanism. The MOEA will establish communication channels between central and local governments to reduce market entry barriers for developers.
   2. Rooftop projects incentive. A rooftop incentive mechanism will be introduced to reward small-scale projects, encouraging installations. For new construction, expansion or reconstruction of a building with an area of 1,000 square metres or more, installation of a solar photovoltaic system with minimum installed capacity will be required.
   3. Support and communication platform. A platform for application guidance and communication will be established, featuring a single-window advisory service, a management platform for large projects, and local communication platform.

Other renewable energy

Supporting the net-zero carbon emissions target and commitment to phase out nuclear power, Taiwan¡¯s cabinet and the MOEA are focused on maximising other renewable energy sources alongside offshore wind and solar.

Introduction of new technologies is planned from 2025 to 2035, requiring immediate investment in research funding for areas such as hydrogen, geothermal and ocean energy.

For geothermal projects, since most geothermal potential lies at depths exceeding 3,000 metres, the goal post-2026 is to implement critical technologies like enhanced geothermal systems and advanced geothermal systems.

In the realm of ocean energy, a demonstration site utilising medium-sized floats was expected to be established by 2025. In terms of hydrogen energy, the plan included establishing two hydrogen refuelling stations by 2025.

Lee and Li Attorneys-at-Law
8F, No.555, Sec. 4, Zhongxiao E. Rd
Taipei 110055, Taiwan
Tel: +886 2 2763 8000
Email: attorneys@leeandli.com