Tuesday, November 24, 2020
Renewable Energy News

Ørsted signs world’s largest corporate renewable PPA in Taiwan – RenewEconomy

By Staff , in Wind Power , at July 9, 2020

Danish renewable power juggernaut Ørsted announced on Wednesday that it had signed a corporate Power Purchase Agreement (PPA) with Taiwan-based TSMC for the full nameplate capacity from its 920MW Greater Changhua 2b & 4 offshore wind farm.

TSMC, the world’s largest semiconductor foundry and a world leader in green manufacturing, will take the entire electricity production from the 920MW Greater Changhua 2b & 4 offshore wind farm which is set to begin construction in 2025 off the west coast of Taiwan in the Formosa Strait between Taiwan and mainland China.

The size of the corporate PPA makes it the world’s largest-ever contract of its kind within the renewable energy sector and will see TSMC secure electricity from the offshore wind farm for a span of 20 years once Greater Changhua 2b & 4 are completed in 2025/2026.

The corporate PPA wil see the Greater Changhua 2b & 4 offshore wind farm receive a price for power including T-RECs (Taiwan renewable energy certificate) during the 20-year contract period that is higher than the feed-in-tariff which was originally secured back in 2018 during Taiwan’s first offshore wind auction.

This serves to increase the project’s financial viability and moves Ørsted further towards a Final Investment Decision, expected to be made in 2023.

“We commend TSMC for their leadership in renewable energy sourcing and for taking tangible action to deliver on their ambitious greenhouse gas reduction targets,” said Martin Neubert, Executive Vice President and CEO of Ørsted Offshore.

“By sourcing renewable energy at an unprecedented scale, TSMC demonstrates strong support for the development of renewable energy. Signing the largest-ever corporate PPA with the world’s leading semiconductor company shows that Ørsted is a trusted renewable energy partner for corporates and governments.”

“TSMC is happy for this opportunity to collaborate with Ørsted and not only expand the adoption of renewable energy, but also to work towards Taiwan’s energy transition to build world-class industrial environment,” said J.K. Lin, Senior Vice President of Information Technology and Materials Management & Risk Management at TSMC.

“As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility to environmental protection.”

The Greater Changhua 2b & 4 offshore wind farm is Ørsted’s third wind farm in Taiwan and will be located approximately 50km off the coast of Changhua County, Taiwan.

The new offshore wind farm, and its nearby brethren, have necessitated Taipower, the country’s transmission system operator, to build a new transmission grid to accommodate the country’s buildout of offshore wind.

Taipower is expected to provide Greater Changhua 2b & 4 with grid access in late 2025, while Ørsted currently expects to generate first power from Greater Changhua 2b & 4 shortly thereafter and to fully commission the wind farm in 2026.

Nearby offshore wind farms include the 900MW Greater Changhua 1 & 2a offshore wind farm which is currently under construction.

“The agreement between Ørsted and TSMC signed today underlines Ørsted’s pioneering role in the development of renewable energy in the Asia Pacific,” said Matthias Bausenwein, President of Ørsted Asia-Pacific.

“In Taiwan, we are already constructing the Greater Changhua 1 & 2a offshore wind farm. Combined with our Greater Changhua 2b & 4 project, which is now one step closer to a final investment decision, we are making offshore wind a cornerstone in Taiwan’s transition from fossil-based to renewable energy.”