Ørsted has taken the final investment decision (FID) on the Changhua 1 and 2a offshore wind farm in Taiwan.
Prior to the FID, Taiwan’s Ministry of Economic Affairs approved Ørsted’s local supply chain plan, and subsequently Ørsted has signed a power purchase agreement (PPA) with Taipower at the feed-in-tariff level announced on 30 January 2019.
“Over the last couple of months, we have been working intensively to obtain establishment permit, renegotiate contracts, get our supply chain plan approved and sign the power purchase agreement,” Martin Neubert , Executive Vice President and CEO of Offshore at Ørsted, says:
”Thanks to a close and strong collaboration with our supply chain partners, Taipower and decision-makers in Taiwan, we have achieved all these milestones and can now take the final investment decision on this landmark project, which will be Taiwan’s largest offshore wind farm and demonstrate offshore wind’s potential to decarbonize energy systems in Taiwan and the Asia-Pacific region.”
Changhua 1 and 2a will be located 35-50 kilometers off the coast of Changhua County and will have a capacity of approximately 900MW. The offshore wind farm will be constructed in 2021 and 2022.
Initial onshore works related to the project are scheduled to start as early as next month, according to Matthias Bausenwein, President of Ørsted Asia-Pacific.
“With the Changhua 1 and 2a offshore wind farm, which is the first under the localization rules to take final investment decision, Ørsted will invest significantly in Taiwan’s transition to renewable energy with substantial impact on local job creation and industrial development,” Bausenwein said.
Ørsted’s Greater Changhua offshore wind sites have a total potential capacity of 2.4GW. With a total of approximately 1.8GW earmarked for buildout in 2021 and 2025, the remaining 0.6GW can participate in future auction rounds, the developer said.