Orsted has taken the final investment decision (FID) on its 920MW Greater Changhua 2b and 4 offshore wind farms in Taiwan with a timeline for completion by the end of 2025.
The 920MW grid capacity of Greater Changhua 2b and 4 was awarded in June 2018 in Taiwan’s first competitive price-based auction with no mandatory local content requirements.
Orsted subsequently secured long-term revenues for the projects by signing a CPPA in July 2020 with Taiwan Semiconductor Manufacturing Company Limited (TSMC).
Greater Changhua 2b and 4 has a robust business case which will create long-term value for Orsted stakeholders, the Danish developer said.
Good visibility on the costs has been achieved by utilising Orsted’s network of regional and global supply chain relationships, it added.
The Greater Changhua 2b and 4 projects will be funded by capital provided by the Orsted Group combined with debt capital sourced from the domestic Taiwanese market – backed by an Orsted A/S parent company guarantee.
Per Mejnert Kristensen, president of Orsted Asia Pacific, said: “Today’s positive investment decision demonstrates that Orsted 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.”
Christy Wang, general manager of Orsted Taiwan, 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 Orsted team is ready to open a new chapter for offshore wind in Taiwan in harmony with nature and communities.”
Located approximately 35-60 km off the Changhua coast, the Greater Changhua 2b and 4 offshore wind farms have obtained all environmental impact assessment approvals.
The Greater Changhua 2b and 4 offshore wind farms are expected to begin onshore construction in 2023 with fabrication of components in 2023-2024 and completion of offshore construction expected by the end of 2025.