Orsted takes final investment decision to build Greater Changhua 2b and 4 offshore wind farms
Ørsted has taken the final investment decision (FID) on its 920 MW Greater Changhua 2b and 4 offshore wind farms in Taiwan with a timeline for completion by the end of 2025, according to the company's release.
The 920 MW grid capacity of Greater Changhua 2b and 4 was awarded in June 2018 in Taiwan’s first competitive price-based auction with no mandatory local content requirements. Ørsted subsequently secured long-term revenues for the projects by signing a corporate power purchase agreement (CPPA) in July 2020 with Taiwan Semiconductor Manufacturing Company Limited (TSMC), which is the largest-ever contract of its kind in renewable energy.
Greater Changhua 2b and 4 has a robust business case which will create long-term value for Ørsted stakeholders. Good visibility on the costs has been 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.
Located approximately 35-60 km off the Changhua coast, the Greater Changhua 2b and 4 offshore wind farms have obtained all environmental impact assessment approvals. The Greater Changhua 2b and 4 offshore wind farms are expected to begin onshore construction in 2023 with fabrication of components in 2023-2024 and completion of offshore construction expected by the end of 2025.
The Greater Changhua 1 and 2a offshore wind farms are located 35-60 km off the coast of Changhua County and have a capacity of approx. 900 MW to provide clean energy to one million households. Ørsted expects to commission the last of the wind farms’ turbines in 2023.
The 605 MW Greater Changhua 1 is co-owned by Ørsted (50 %) as well as Caisse de dépôt et placement du Québec (CDPQ) and Cathay PE, with a combined ownership stake of 50 %.
Greater Changhua 1 hosts the world-first pilot ReCoral by ØrstedTM, a project that sets out to discover whether offshore wind turbine foundations could provide an additional new home where corals have the potential to flourish.
Ørsted was awarded the 920 MW Greater Changhua 2b and 4 offshore wind farms in June 2018. A corporate power purchase agreement was signed with Taiwan Semiconductor Manufacturing Company Limited (TSMC) in July 2020. The Greater Changhua 2b and 4 offshore wind farms are expected to be completed by the end of 2025.
Ørsted is developing a leading portfolio of offshore wind sites and has secured approvals of environmental impact assessments for them so they can compete in future tenders in Taiwan.
The development projects include the Xu Feng 1, 2 and 3 offshore wind projects, which are located 37-62 km off the coast of Changhua County, the Wo Neng 1 and 2 offshore wind projects, which are located 42 km off the coast of Taichung, and the Greater Changhua 3 project.
Ørsted has installed more than 1,900 offshore wind turbines at sea. By the end of 2022, Ørsted had 8.9 GW of capacity installed, 2.2 GW of capacity under construction, and a further 11.2 GW of capacity awarded, resulting in a firm capacity of 22.2 GW. This aligns with the company’s ambition of reaching 50 GW installed renewable energy capacity by the end of 2030.
