Mr Cheng-Mount Cheng, vice chairman of the Financial Supervisory Commission (FSC), has said that the insurance sector will design insurance products that will help the banking industry to finance offshore wind power projects.
He said that the FSC will continue to loosen regulations and create a friendly environment.
To grow the green energy sector, the FSC will promote project financing. He noted that the banking industry is hesitant about financing offshore wind power projects.
Mr Cheng explained the banks' wariness, "Our understanding is this: project financing was relatively rare in Taiwan in the past, and there are still many uncertain factors in the technology involved in offshore wind power."
He added, "What we have mentioned are new types of products, and what will be promoted in the future are insurance related products that can help bankers. For investment financing, if there is an insurance mechanism, they will be more assured.”
The government is promoting renewable energy, in a shift away from nuclear power. In April, Taiwan announced its first major offshore wind farm auction that aims to add 3.8 gigawatts (GW) of capacity to its existing network of just 8 megawatts (MW).
The island’s offshore wind market is expected to expand to 5.5 GW by 2025, and the government plans to invest $23 billion on onshore and offshore wind projects by 2025.