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Danish energy developer Orsted announced on Wednesday the signing with the Taiwanese company TSMC of the world’s largest power purchase agreement (PPA) for the entire production of the 920 MW Greater Changhua 2b & 4 offshore wind farm.
The 20-year fixed price contract period begins once Greater Changhua 2b & 4 reaches commercial activity in 2025/2026, subject to network availability and Orsted’s final investment decision.
Under this agreement, Greater Changhua 2b & 4 will receive a price for electricity, including T-REC (Taiwan Renewable Energy Certificate) for the duration of the 20-year contract.
This is higher than the feed-in tariff that was originally guaranteed via the first offshore wind turbine auction in Taiwan in June 2018.
Orsted said the APP improves the financial viability of the project and helps it mature Greater Changhua 2b & 4 towards a final investment decision.
“By sourcing renewable energy on an unprecedented scale, TSMC demonstrates solid support for the development of renewable energy. The signing of the largest corporate PPA ever signed with the world leader in semiconductors shows that Orsted is a reliable partner in renewable energy for businesses and governments, “said Martin Neubert, Executive Vice President and CEO of Orsted.
For his part, the president of Orsted for Asia-Pacific, Matthias Bausenwein, recalled that the Danish energy giant is already building in Taiwan the offshore wind farm Greater Changhua 1 & 2a.
TSMC, the world’s largest semiconductor foundry, is also a world leader in green manufacturing.
Greater Changhua 2b & 4 will be Ørsted’s third offshore wind farm in Taiwan, subject to a final investment decision that is expected to be made. With a capacity of 920 MW, it will be located in the Taiwan Strait about 50 km off the coast of Changhua County.
Greater Changhua 2b & 4 will be located next to the 900 MW Greater Changhua 1 & 2a offshore wind farm that Ørsted is building. Ørsted is also co-owner of Formosa 1’s first commercial scale offshore wind farm, which was extended to its current capacity of 128 MW in October 2019.
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