CIP completes $3bn financing for 589MW offshore wind project in Taiwan

24 February 2020 (Last Updated February 24th, 2020 11:59)

Denmark-based Copenhagen Infrastructure Partners (CIP) has achieved financial close for its 589MW offshore wind project Changfang and Xidao in Taiwan.

CIP completes $3bn financing for 589MW offshore wind project in Taiwan
Changfang and Xidao offshore wind farm will be equipped with 62 wind turbines. Credit: Copenhagen Infrastructure Partners K/S.

Denmark-based Copenhagen Infrastructure Partners (CIP) has achieved financial close for its 589MW offshore wind project Changfang and Xidao in Taiwan.

CIP said that the financial close was reached through its Copenhagen Infrastructure II (CI II) and Copenhagen Infrastructure III (CI III).

The wind farm financing includes a combination of equity and senior loans.

CI II and CI III raised approximately $3bn (TWD90bn) in project financing from banks, financial institutions and export credit agencies.

CIP partner Michael Hannibal said: “Reaching financial close marks a major milestone for the Changfang and Xidao project and we are really excited about entering the construction phase of the project and will, once commercial operation start, provide clean energy to more than 600,000 households in Taiwan.”

Located off the coast of Changhua County, Taiwan, Changfang and Xidao wind farm will be equipped with 62 wind turbines that will be delivered by MHI Vestas.

CIP acquired the Changfang and Xidao project in 2017. In 2019, a 20-year power purchase agreement (PPA) was signed for the project with the state-owned Taiwan Power Company.

In addition, the project obtained local content plan approval in December 2019.

Changfang Xidao CEO Jesper Krarup Holst said: “Since we entered the Taiwan offshore wind market in 2017, we have worked intensively with Taiwanese companies and the government to build up the local supply chain and we are, therefore, proud to deliver the project with the highest extent of localisation in Taiwan to date.”

CIP will manage project construction. The Changfang and Xidao is expected to begin commercial operations in 2024.

CIP said that it will involve local industries for manufacturing jacket foundation, pin piles, onshore substation, transport, and installation contracts.