Taiwan

Taiwan

Ørsted secures record corporate PPA for 920MW Taiwan offshore project

The Taiwan Semiconductor Manufacturing Company (TSMC) has agreed to buy the entire output from Ørsted’s 920MW Greater Changhua 2b & 4 project off Taiwan's west coast, making it the largest agreed corporate power purchase agreement in history.

The Taiwan Semiconductor Manufacturing Company, Taiwan's largest company, has signed a 900MW PPA with Ørsted (pic: TSMC)
The Taiwan Semiconductor Manufacturing Company, Taiwan's largest company, has signed a 900MW PPA with Ørsted (pic: TSMC)

Google Translate

Ørsted and TSMC announced the 20-year fixed-price contract today, which will see all power from the Greater Changhua 2b & 4 offshore wind farm sold to the Hsinchu-based manufacturer once built.

The project is expected to be commissioned in 2026 at the earliest, subject to grid availability and Ørsted’s final investment decision, expected in 2023.

The wind farm will be located in the Taiwan Strait roughly 50km off the coast of Changhua County. If given the go ahead, the farm will be located adjacent to the 900MW Greater Changhua 1 & 2a project, which Ørsted is currently building. 

Ørsted also part-owns Taiwan’s first commercial-scale offshore wind farm, Formosa 1, which was extended to its current capacity of 128MW in October last year.

Under the PPA with TSMC, the Greater Changhua 2b & 4 offshore wind farm will receive a price for power including Taiwan renewable energy certificates (T-Recs) – a subsidy higher than the feed-in-tariff that was originally secured via Taiwan’s first offshore wind auction in June 2018.

JK Lin, a senior vice president at TSMC, wrote that his company was taking “green action” to carry out its “responsibility to environmental protection”.

Martin Neubert, Ørsted's offfore CEO, said TSMC was sourcing renewable energy at “an unprecedented scale,” after signing the largest-ever corporate PPA.

Have you registered with us yet?

Register now to enjoy more articles
and free email bulletins.

Sign up now
Already registered?
Sign in