Canadian energy company Northland Power has signed a corporate power purchase agreement (CPPA) with an investment-grade counterparty for its offshore wind facility in Taiwan.
Under the 20-year CPPA, 100% of the clean energy generated from the Hai Long 2B and 3 projects will be supplied to the buyer.
The two projects have a combined capacity of 744MW and are set to become operational in late 2026.
Under the terms of the agreement, Hai Long 2B and 3 will receive a fixed price for delivering power and Taiwan Renewable Energy Certificates (T-RECs) during the contract period.
Northland Power secured the Hai Long offshore wind project in an auction.
Apart from Hai Long 2B and 3, the Hai Long project also includes the 300MW Hai Long 2A, which secured a 20-year power purchase agreement (PPA) with Taipower in 2019 under a Feed-in-Tariff allocation.
Northland Power noted that the projects were allocated grid capacity for connection under Taiwan’s fixed auction programme in 2018.
The company holds a 60% stake in the Hai Long project and has also secured PPAs with Taiwan Power Company (Taipower).
Northland added that the contracted price under the new CPPA is more favourable than the fixed auction rate originally awarded in 2018.
With the newly improved rate, the firm expects that it will not only improve the economics of the project but help secure non-recourse project-level debt financing and financial close later this year.
Northland Power president and CEO Mike Crawley said: “Today’s announcement is a substantial milestone for Northland and for our partners in the Hai Long project.
“This agreement marks Northland’s first signed corporate PPA and aligns with our commitment to supporting the global decarbonisation efforts by governments and corporate entities through the development of renewable energy.
“In particular, the development of Hai Long will support Taiwan’s transition to renewable energy.”