MHI Vestas Keeps It Local with Switchgear Contract in Taiwan

MHI Vestas Offshore Wind has signed a conditional agreement with Mitsubishi Electric Europe B.V. for the assembly of high voltage switchgear in Taiwan.

Taiwanese manufacturer Shihlin Electric Co. is included in the agreement as an integral part of the production, MHI Vestas said, adding that the contract meets the Taiwan government’s localisation requirements for local production.

“It is clear that we’re moving aggressively with our industrial plans in Taiwan,” said Lars Bondo Krogsgaard, MHI Vestas Co-CEO.

“Signing with industry leader Mitsubishi Electric, who will work with Shihlin Electric for local switchgear assembly, speaks to the tremendous progress MHI Vestas has made in building up the local offshore wind supply chain. As a result of our sustainable localisation efforts, up to NT$9.2b in economic value and 5,300 clean energy jobs will come to Taiwan.”

The assembly and testing of high voltage switchgear, a key electrical component in offshore wind turbines to help control and protect electrical equipment, will be done at Shihlin’s factory in Hsinchu, with first delivery in 2022 for projects installed in 2023 and 2024.

“To manufacture switchgear for this new industry here in Taiwan, we have selected the reputable local manufacturer, Shihlin Electric as a partner,” said Noriyuki Takazawa, Mitsubishi Electric Corporate Executive Group Senior Vice President.

“We have a very strong historical link with Shihlin Electric. We are confident that Shihlin Electric and Mitsubishi Electric will successfully supply switchgear with our proven technology.”

MHI Vestas has now signed three contracts for local production in Taiwan, including CS Wind and Chin Fong for towers and Swancor for blade materials as part of a formal localisation framework made in October 2018 with Copenhagen Infrastructure Partners (CIP).

“MHI Vestas’ signing with Mitsubishi Electric today marks another step forward in turbine localisation in Taiwan. We are very proud to remain the only project that continues to bring localisation efforts,” said Jesper Krarup Holst, CEO of CIP’s Changfang and Xidan Projects.

“The collaboration between Mitsubishi Electric and Shihlin Electric is an example of bridging international experience with local knowledge and consolidating the technical capabilities of both companies. The tremendous amount of hard work leading to this partnership demonstrates that localisation is a complex process. And the support of a pragmatic framework is essential in building a sustainable supply chain.”

MHI Vestas is slated to provide its 9MW turbine platform for three upcoming projects in the Taiwan offshore wind market, totaling 900MW in energy production.