It is the first PPA to be negotiated between the utility and one of the developers of ten projects with a combined capacity of 3.8GW that were allocated a grid connection in April.
The JV has not revealed the price it will receive for power from the wind farm, also known as Haineng, which will be connected to the grid in 2020.
It also has not disclosed the turbine supplier or how many turbines will be installed at the site in the Taiwan Strait.
The contract signing comes after Taiwan’s ministry of economic affairs (MOEA) was criticised for its offshore wind policy.
The MOEA also attracted criticism for proposing to cut the feed-in tariff and only pay it for the first 3,600 hours of power sold before reducing the rate.
Swancor and Macquarie have taken steps to work with local companies, students and communities ahead of starting the Formosa 2 project, they claimed.
The JV has worked with three Taiwanese engineering companies and consultants on the onshore engineering design work for Formosa 2, it added.
Guangyu Consulting, Shiki Engineering Consulting and Zhongxing Engineering have all helped with project planning, Swancor and Macquarie stated.
They have also worked with local colleges and universities to investigate and analyse legislation covering wind farms in Taiwan.
The project partners also launched an offshore wind training programme this year, and plan to train local fisherman as observers of whales and dolphins.
Formosa 2 is one of two wind farms due to be connected to the grid in 2020 — ahead of other projects set to be connected between 2021 and 2025.
Swancor and Macquarie are also extending Taiwan’s first offshore wind farm, Formosa 1, to a new capacity of 128MW in a consortium with Ørsted.
When completed, the partners’ offshore wind farms, would have a combined capacity of more than 500MW, they pointed out.