Ørsted has taken a final investment decision (FID) on the 920 MW Greater Changhua 2b and 4 offshore wind farms in Taiwan.
Located approximately 35-60 km off the Changhua coast, the developer secured 920 MW of grid capacity for Greater Changhua 2b and 4 in June 2018 as part of Taiwan’s first competitive auction with no mandatory local content requirements.
It later secured long-term revenues for the projects via a corporate power purchase agreement (CPPA) in July 2020 with Taiwan Semiconductor Manufacturing Company (TSMC).
Onshore construction is set to begin this year, with both projects eyed for completion by the end of 2025.
Funding will come from capital provided by Ørsted alongside debt capital sourced from the domestic Taiwanese market and backed by a guarantee from the parent group.
Ørsted successfully generated first power from the 900-MW sister project, Changhua 2a, last year, and expects to fully commission the last of the turbines in 2023.
It later opened what the company says is the largest offshore wind operations and maintenance (O&M) hub in Asia Pacific to support build out of the schemes.
Ørsted’s president of Asia-Pacific Per Mejnert Kristensen said: “Today’s positive investment decision demonstrates that Ørsted is primed and ready to build and operate large-scale offshore wind projects in Taiwan.
“Our experience in 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.”
General manager for the group’s Taiwanese business, Christy Wang,added: “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 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.”
Taiwan’s plan for offshore wind development includes a three-stage strategy and it targets 5.7GW of cumulative installed capacity by 2025 during the first two stages.
It aims to build 1GW of resources per year from 2026 to 2035, which will be considered the third stage of development.