Ørsted to Start Building Its Two New Offshore Wind Farms in Taiwan

Business & Finance

March 31, 2023, by Adrijana Buljan

Ørsted has taken the final investment decision (FID) on the 920 MW Greater Changhua 2b and 4 offshore wind farms in Taiwan, moving them into the construction stage. Onshore work and fabrication of components will start this year and the project construction is scheduled to be completed by the end of 2025.

The project is set to use suction bucket jacket foundations, the first time this type of foundation will be installed in Asia Pacific.

Ørsted secured 920 MW of grid capacity for the offshore wind farms in 2018 in Taiwan’s first competitive price-based auction with no mandatory local content requirements. Two years later, the developer signed a corporate power purchase agreement (CPPA) with Taiwan Semiconductor Manufacturing Company Limited (TSMC) for the offtake of the full production from Changhua 2b and 4.

The Greater Changhua 2b and 4 project has also obtained all environmental impact assessment (EIA) approvals.

Located approximately 35-60 kilometres off the Changhua coast, Changhua 2b and 4 will comprise around 65 wind turbines with an individual output of 14 MW.

After signing the CPPA with TSMC, Ørsted said that the power offtake agreement improved the project’s financial viability and helped the developer mature Greater Changhua 2b and 4 towards a final investment decision.

In a press release issued on 31 March, the developer said the project had a robust business case which would create long-term value for the company’s stakeholders, with good visibility on the costs that was achieved by utilising Ørsted’s network of regional and global supply chain relationships.

“The Greater Changhua 2b and 4 projects will be funded by capital provided by the Ørsted Group combined with debt capital sourced from the domestic Taiwanese market – backed by an Ørsted A/S parent company guarantee”, the developer stated in the press release.

By the end of 2025, when the new Changhua 2b and 4 offshore wind farms are built, Ørsted will have more than 1.82 GW of operational offshore wind capacity in Taiwan.

The company is currently building the 900 MW Greater Changhua 1 and 2a offshore wind farms, slated for full commissioning this year, and is the co-owner of Taiwan’s first commercial offshore wind farm, the 128 MW Formosa 1, operational since 2019.

Ørsted also has projects in development in Taiwan, including the Xu Feng 1, 2 and 3 offshore wind farms off the coast of Changhua County, the Wo Neng 1 and 2 offshore wind projects off the coast of Taichung, and the Greater Changhua 3 project.