Ørsted is to press ahead with the Changhua 1 and 2a offshore windfarms in Taiwan, projects that it put on hold in January 2019 amid concern about the level of financial support from the government there.
The offshore wind developer has taken a final investment decision for the projects after Taiwan’s Ministry of Economic Affairs approved Ørsted’s local supply chain plan and Ørsted signed a power purchase agreement with Taipower at the feed-in-tariff level announced on 30 January 2019, a level that was agreed after intense negotiations between the Taiwanese government and developers.
In early January 2019, Ørsted said it needed to revisit commitments it made to build the offshore windfarms in Taiwan amid concern about delays and retrospective changes to feed-in tariffs.
Changhua 1 and 2a are 35-50 km off the coast of Changhua County and will have a capacity of approximately 900 MW. The offshore windfarms will be constructed in 2021 and 2022.
Ørsted Offshore executive vice president and chief executive Martin Neubert said, “Over the last couple of months, we have been working intensively to obtain an establishment permit, renegotiate contracts, get our supply chain plan approved and sign the power purchase agreement.
“Thanks to a close and strong collaboration with our supply chain partners, Taipower and decision-makers in Taiwan, we have achieved all these milestones and can now take the final investment decision on this landmark project, which will be Taiwan's largest offshore windfarm and demonstrate offshore wind’s potential to decarbonize energy systems in Taiwan and the Asia-Pacific region.”