Taiwan to discuss wind-policy rules with EU as WTO dispute brews

Taiwan will send representatives to Europe next month to discuss its local-content policy for wind farms following a European Union request for dispute-settlement talks at the World Trade Organization.

“The European Union is quite concerned about wind power, and Taiwan will discuss a way with the EU that can be accepted by domestic and foreign manufacturers,” Minister of Economic Affairs Kuo Jyh-huei told reporters on Monday, adding that the island will gradually work toward an open market.

Taiwan has been promoting wind power to help meet clean-energy goals, but content rules requiring developers source a portion of equipment and services from local manufacturers have proved contentious. Rystad Energy AS has estimated the approach raises costs of some parts by as much as 70%. 

In July, the EU raised a request for dispute-settlement consultations at the WTO, saying Taiwan’s policy discriminated against imported goods and services. The content requirements meant efficiency losses and price increases, the bloc said, adding that they would make the energy transition more difficult. 

The dispute is the latest setback for Taiwan’s burgeoning wind-power industry, which has been grappling with fast-rising costs, worsening delays, and even exits by some companies.