Orsted makes final investment decision on Taiwan wind projects

30 April 2019 - 08:33 am UTC

Orsted has taken a final investment decision (FID) on the Greater Changhua Southwest and Southeast projects, the Danish wind developer said in a statement today (30 April).

The move comes after Taiwan’s Ministry of Economic Affairs approved Orsted’s local supply chain arrangement. The projects also secured a 20-year power purchase agreement (PPA) with state utility Taipower, the company said. This will see Changhua selling electricity to the state utility at a Feed-in-Tariff of TWD 6.2795 (USD 0.2)/kwh for the first 10 years, and TWD 4.1422/kwh for the following 10 years.

The projects will be located 35km-50km off the coast of Changhua county and will have a combined capacity of approximately 900MW. The projects will be constructed in 2021 and 2022, Orsted said.

The Danish developer plans to invest significantly in Taiwan’s transition to renewable energy, the statement cited Asia-Pacific President Matthias Bausenwein as saying. “We are proud that we have secured a very high level of local content on the project, and we will start the initial onshore works next month,” he said.

Taiwanese authorities have agreed to allow Danish offshore wind project developer Orsted to reduce local content in its 900MW Greater Changhua project, as reported by Inframation on 26 April.

The project had been on hold since last month as negotiations on the localisation issue continued between the two sides. On 18 April, Taiwan's minister of economic affairs said that Orsted would need to provide proof that domestic industries would be unable to facilitate production capacity for the project.

 

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