Danish multinational power company Ørsted has taken the final investment decision (FID) for building 920MW Greater Changhua 2b and 4 offshore wind farm projects in Taiwan.
The projects were awarded in June 2018 under Taiwan’s first competitive price-based auction.
Ørsted secured long-term revenues from these projects through a corporate power purchase agreement (CPPA) signed in July 2020 with the Taiwan Semiconductor Manufacturing Company Limited (TSMC).
This CPPA is claimed to be the largest contract of its kind in the country’s renewable energy sector.
The funding for Greater Changhua 2b and 4 will come from the capital provided by the Ørsted Group as well as the debt capital obtained from the domestic Taiwanese market that is supported by an Ørsted A/S parent company guarantee.
Ørsted Asia Pacific president Per Mejnert Kristensen said: “This positive investment decision demonstrates that Ørsted is primed and ready to build and operate large-scale offshore wind projects in Taiwan.
“Our experience in the Asia Pacific combined with our technical expertise, financial capabilities and close collaboration with stakeholders gives us full confidence that we will fulfil our commitments to the grid contract with the Taiwan authorities and the CPPA with TSMC.
“This final investment decision is a major step forward for our mission to accelerate Asia Pacific’s decarbonisation journey.”
Ørsted Taiwan general manager Christy Wang said: “In dynamic market conditions, our highly capable teams have overcome challenges from site conditions, infrastructure, project engineering and procurement to bring the Greater Changhua 2b and 4 projects to a successful final investment decision.
“We are proud that the projects will implement the latest environmentally friendly technology of suction bucket jacket foundations for the first time in the Asia Pacific.
“With support from our suppliers and stakeholders, the Ørsted team is ready to open a new chapter for offshore wind in Taiwan in harmony with nature and communities.”
The Greater Changhua 2b and 4 offshore wind farms are nearly 35km-60km off the coast of Changhua County.
The wind farms have received all the environmental impact assessment approvals.
Onshore construction of the projects is anticipated to commence this year, with the fabrication of components to be undertaken this year and next year.
The completion of the offshore construction of the projects is expected by the end of 2025.