MHI Vestas has signed a conditional agreement that will see Mitsubishi Electric Europe work with Taiwanese manufacturer Shihlin Electric on local switchgear assembly for offshore wind farms in the region.
The contract, which was signed by executives from MHI Vestas and Mitsubishi Electric Europe, meets the Taiwan government’s localisation requirements for local production.
Under the terms of the agreement assembly and testing of high voltage switchgear, a key electrical component in offshore wind turbines to help control and protect electrical equipment, will be done at Shihlin’s factory in Hsinchu.
First delivery will occur in 2022 for projects installed in 2023 and 2024.
MHI Vestas co-chief executive Lars Bondo Krogsgaard said: “It is clear that we’re moving aggressively with our industrial plans in Taiwan.
“Signing with industry leader Mitsubishi Electric, who will work with Shihlin Electric for local switchgear assembly, speaks to the tremendous progress MHI Vestas has made in building up the local offshore wind supply chain.”
MHI Vestas has now signed three contracts for local production, including CS Wind and Chin Fong for towers and Swancor for blade materials as part of a formal localisation framework made in October 2018 with Copenhagen Infrastructure Partners (CIP).
The comprehensive localisation plan by MHI Vestas and CIP will create up to 5300 jobs and will generate NT$9.2b (€264m) in economic value for Taiwan in localised components alone, which does not include installation, commissioning, and operation and maintenance for the lifetime of the turbine.
Shihlin Electric vice chief operations officer Yang Tsun-Ching said: “We are delighted at this new opportunity to join with Mitsubishi Electric in supporting the localisation of their 66kV switchgear here in Taiwan.
“We are pleased to contribute to the growth of renewable energy and the development of the economy in Taiwan through MHI Vestas’ projects.”
MHI Vestas is slated to provide its 9MW turbine platform for three upcoming projects in the Taiwan offshore wind market, totalling 900MW in energy production.