Japanese utility Jera has completed the transfer of its shares in the Formosa 3 offshore wind project in Changhua, Taiwan, to its joint venture (JV) partner Corio Generation.
The company announced the decision to transfer all its shares and exit the Formosa 3 project after a careful assessment of its investment portfolio. It was involved in the project as a co-sponsor.
Jera will continue with its existing projects in Taiwan, including Formosa 1 and Formosa 2.
Nikkei‘s report stated that Jera had decided to sell the stake owing to concerns about increasing construction costs and lower profitability.
Corio then entered a JV with TotalEnergies to jointly develop the project in February 2023.
Corio is the largest shareholder with a 50% stake plus ten shares.
Corio made the announcement after the Energy Bureau of the Ministry of Economic Affairs agreed to allocate a grid capacity of 600MW for the Haiding 2 wind farm in December 2023.
Formosa 3 includes three proposed wind farms, Haiding 1, 2 and 3.
In May 2023, along with NTT Anode Energy, Jera agreed to acquire Green Power Investment (GPI) from US energy company Pattern Energy Group.
GPI is a renewable energy generation company that has been operating in Japan since 2004. The company owns and operates six renewable projects with a total capacity of 337MW and has two projects under construction with a combined capacity of 192MW.