When discussing the issue of Taiwan's localization of offshore wind power, Richard Liu suddenly posed a question to the reporter, stating, "If television manufacturers can only produce 40 televisions, but all the buyers in the market want to purchase a total of 100 televisions, do you think the television manufacturers would sell them at a lower price if the buyers purchased 40 televisions at once?"
"Under the requirements of localization, once a project is included in the localization initiative, as long as manufacturers can produce it, there won't be any unsold products; this is akin to Say's Law," said Liu. This implies that under the localization requirements, including underwater foundations, there are cases where buying more doesn't necessarily result in a lower cost. Developers are obligated to purchase as much as they produce, whether it's 40 units or 20 units, and the price per unit remains the same. However, for projects below 500MW, the unit installation cost might be slightly higher.
According to the game rules revealed by the media for the selection of developers in the third phase of offshore wind power block development, developers wishing to secure higher installation capacity must undertake more localization responsibilities. Currently, the production costs of local manufacturers are mostly higher than those of foreign manufacturers. In other words, the argument that larger installation capacity equates to cost efficiency may not necessarily hold.
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