(Bloomberg) -- Synera Renewable Energy Group, a Taiwan-based offshore wind developer, is in talks over potential deals across Asia as it seeks to diversify beyond its home market.

The firm is holding discussions over acquisitions and investments with companies in South Korea, Japan and Australia, Chief Executive Officer Anna Su said in an interview. SRE is already involved in projects in Japan and will also consider expanding into Southeast Asia next year, she said.  

The move to diversify geographically comes as offshore wind projects globally struggle with the after-effects of Covid-19, including higher interest rates and surging inflation. In Taiwan, requirements that developers buy 60% of their equipment from local manufacturers has also pushed up costs. Japanese companies have been pulling out of projects on the island.

Globally, costs in the offshore wind industry have risen roughly 50% on average this year, and this will continue to be a challenge, Su said. Taiwan’s local content requirements make wind energy relatively more expensive, and many of the island’s companies are unwilling to pay extra when current electricity prices are heavily subsidized by the government, she said.

“You want green energy, but green energy does not come free,” Su said. 

Read More: Japan Firms Exiting Taiwan Wind Projects Deepen Industry Crisis

SRE was also “continuously watching” the state of geopolitical tensions between Taiwan and China, she said.

Su said she was still optimistic about wind power on the island, particularly due to demand from the semiconductor chip industry, which could absorb about 6 gigawatts of capacity alone. “Taiwan made a good decision to join the offshore wind industry early,” she said.

--With assistance from Cindy Wang and Spe Chen.

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