German wind power firm to withdraw from Taiwan

Germany's InfraVest, the country's largest private wind power company, is set to withdraw from Taiwan
Wind turbines are seen in eastern Germany. InfraVest, the country's largest private wind power company ha said Friday it will withdraw from Taiwan because it does not have confidence in the government's energy policies.

Germany-based InfraVest, the largest private wind power company in Taiwan, said Friday it will withdraw from the island because it does not have confidence in the government's energy policies.

InfraVest said a newly announced government purchasing price for was below the cost of producing it, forcing the company to concentrate on mainland instead.

The island's government has agreed to pay 2.38 Taiwan dollars (seven US cents) per kilowatt hour, which is lower than the company's cost of around 2.8 dollars.

"InfraVest will incur losses on such a low purchasing price. We can't help but doubt the government's determination to develop renewable energy," company vice president Wang Yun-yi told AFP.

"We have decided to withdraw from Taiwan and refocus our greater China operations on the mainland instead of Taiwan," she said.

InfraVest has invested more than 10 billion Taiwan dollars in the island since it arrived in 2000, according to Wang.

Currently, InfraVest runs three in Taiwan, while construction of another two farms has just ended, and trial operations have begun.

She said the company will dispose of its Taiwan assets, but she did not disclose a timetable.

The economics ministry said it will communicate with InfraVest, hoping to reverse its decision to withdraw from Taiwan.

"The new purchasing price was set after careful studies, higher than the previous 2.00 dollars," said Wang Yun-ming, deputy director of the ministry's energy bureau.

" has a great potential in developing , and with costs falling the price is fair."

Wang said the government was determined to push for renewable and will not change its stand.

"We will continue to provide tax incentives to operators and help them resolve problems regarding land procurement for factory construction," he said.


Explore further

Taiwan plans massive growth in solar energy

(c) 2010 AFP

Citation: German wind power firm to withdraw from Taiwan (2010, February 26) retrieved 3 March 2021 from https://phys.org/news/2010-02-german-power-firm-taiwan.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
0 shares

Feedback to editors

User comments