Northland Power has boosted the economics of its Hai Long offshore wind farm cluster in Taiwan, securing a 20-year fixed-price CPPA for electricity from phase 2B and 3 of the project, which have a combined capacity of 744MW. The rate agreed under the CPPA is higher than the fixed price awarded in the 2018 auction, the company notes.
The agreement, with an unnamed investment grade counterparty (S&P: AA-), will start once Hai Long reaches full commercial operation in late 2026, Northland said. Under the terms of the CPPA, Hai Long 2B and 3 will receive a fixed price for the electricity and Taiwan Renewable Energy Certificates (T-RECs).
Hai Long consists of three offshore wind sites, with a combined capacity of 1,044MW, being developed as a single project. In addition to the 232MW Hai Long 2B and 512MW Hai Long 3 sites, the project includes Hai Long 2A (300 MW). Hai Long 2A entered a separate 20-year PPA with utility Taipower in 2019, under a feed-in tariff allocation. All three sites are set to use Siemens Gamesa's latest SG 14-222 DD turbine, under a preferred supplier agreement announced in May.
In 2018, the projects were allocated grid capacity for connection under Taiwan’s fixed price auction programme and awarded PPAs with Taipower, with the tariffs subsequently revised in 2019 after industry concerns about project viability.
The improved rate secured by Northland under the new CPPA "enhances the economics of the project and is a key accomplishment as Northland progresses Hai Long towards securing non-recourse project level debt financing and financial close later this year", Northland said in a statement.
The PPAs with Taipower are not affected by the signing of the CPPA and provide a backstop to it, the company added.
Northland has a 60% interest in Hai Long, with Yushan Energy owning the remaining 40%.
“Today’s announcement is a substantial milestone for Northland and for our partners in the Hai Long project," said Mike Crawley, president and chief executive of Northland.
"This agreement marks Northland’s first signed corporate PPA and aligns with our commitment to supporting the global decarbonisation efforts by governments and corporate entities through the development of renewable energy. In particular, the development of Hai Long will support Taiwan’s transition to renewable energy.”