MHI Vestas Bolsters Taiwan Supply Chain with Switchgear Deal

MHI Vestas has finalised a purchase agreement with Mitsubishi Electric Europe to source switchgear for upcoming offshore wind projects in Taiwan through the participation of the local manufacturer, Shihlin Electric and Engineering Corporation (SEEC).

The purchase agreement, first announced in April 2019, is expected to enable Mitsubishi Electric and SEEC to build expertise through supplying MHI Vestas’ Taiwanese offshore wind projects, to prepare for potential export to the broader Asia-Pacific (APAC) region.

The assembly and testing of high voltage (66kV) switchgear will be done at SEEC’s factory in Hsinchu, with first delivery in 2022 for projects to be installed in 2023 and 2024.

MHI Vestas is the first offshore wind turbine manufacturer to source high voltage switchgear from within Taiwan, the company said.

In collaboration with developers Copenhagen Investment Partners (CIP) and China Steel Corporation (CSC), MHI Vestas has developed and is in the process of delivering what the company describes as ”the leading supply chain localisation plan for offshore wind projects in Taiwan.”

“The fact that we will be able to source switchgear locally in Taiwan is a significant achievement for MHI Vestas and for the development of the local offshore wind supply chain in-country,” said Maida Zahirovic, MHI Vestas’ Taiwan Business Director.

”We will continue delivering the leading localisation plan in Taiwan in conjunction with our local partners, and we look forward to working with Mitsubishi Electric and SEEC on switchgear production, helping them to prepare for export throughout the APAC region.”

MHI Vestas has been awarded firm contracts for the 589 MW Changfang and Xidao projects developed by CIP, as well as preferred supplier status for the 300 MW Zhong Neng project developed by CSC and CIP.

Presently, MHI Vestas has signed firm purchase agreements for components such as blades and blade materials , and has also signed a contract in Taiwan for tower supply.