Pin piles for wind turbines for Greater Changhua being manufactured

Ørsted Sells 50 Per Cent of Greater Changhua 1

A consortium comprising Caisse de dépôt et placement du Québec (CDPQ) and Taiwanese private equity fund Cathay PE is acquiring a 50 per cent ownership share in Ørsted’s 605 MW Greater Changhua 1 offshore wind farm in Taiwan for approximately TWD 75 billion (around EUR 2.2 billion).

Ørsted; Pin piles for Greater Changhua 1 & 2a being produced

Under the agreements Ørsted signed with the consortium on 28 December, the total value of the transaction will be paid during 2021 and 2022, with CDPQ to become the majority owner among the two new partners.

The acquisition of the 50 per cent ownership share also includes the commitment from the consortium to fund 50 per cent of the payments under the EPC contract for the wind farm, which includes both the generation and transmission assets. Ørsted will build the offshore wind farm under a full-scope EPC contract and provide long-term operations and maintenance (O&M) services.

The divestment of the Greater Changhua 1 offshore wind farm is in line with Ørsted’s farm-down model, which the developer has been applying in Europe, and represents the first time for Ørsted to do this on a project in Asia-Pacific. The divestment is still subject to regulatory approval from the Taiwanese authorities.

The 50 per cent stake in Greater Changhua 1 will be funded through a combination of equity and senior long-term debt facilities from 15 international and Taiwanese banks and two Taiwanese life insurance companies, as well as five export credit agencies providing lending and guarantees.

“We’re looking very much forward to working with our new partners in the consortium and supporting Taiwan’s energy transition, not least through a strong collaboration with the financial sector in Taiwan”, said Matthias Bausenwein, President of Ørsted Asia-Pacific. “Bringing long-term infrastructure investors and Taiwanese banks into Greater Changhua 1 is another milestone for the Taiwanese market, underlining its pioneering role in the Asia-Pacific region. While bringing in partners, Ørsted remains fully committed to constructing and operating the project during its lifetime”.

Greater Changhua 1 is part of the 900 MW Greater Changhua 1 & 2a offshore wind farm, which is currently under construction. Ørsted kicked off the construction work of the onshore substations and onshore transmission system in November 2019.

Changhua 1 and 2a, which will feature 111 Siemens Gamesa 8 MW turbines installed on jacket foundations some 35 to 50 kilometres off the coast, is scheduled to be built in 2022 and, once operational, will be able to supply around one million Taiwanese households with clean electricity.