America’s first major offshore windfarm is under threat due to delays Credit: Nicholas Doherty on Unsplash.

Danish energy company Ørsted has announced the final investment decision (FID) on the Changhua 1 and 2a offshore windfarm in Taiwan.

The FID decision was taken by the company’s board of directors and follows approval for Ørsted’s local supply chain plan from Taiwan’s Ministry of Economic Affairs.

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Following this development, the Danish company signed a power purchase agreement (PPA) with Taipower at the feed-in-tariff level.

Ørsted Offshore executive vice-president and CEO Martin Neubert said: “Over the last couple of months, we have been working intensively to obtain establishment permit, renegotiate contracts, get our supply chain plan approved and sign the power purchase agreement.

“Thanks to a close and strong collaboration with our supply chain partners, Taipower and decision-makers in Taiwan, we have achieved all these milestones and can now take the final investment decision on this landmark project, which will be Taiwan’s largest offshore windfarm and demonstrate offshore wind’s potential to decarbonise energy systems in Taiwan and the Asia-Pacific region.”

“Ørsted will invest significantly in Taiwan’s transition to renewable energy with substantial impact on local job creation and industrial development.”

With nearly 900MW capacity, Changhua 1 and 2a offshore windfarm is 35km-50km off the coast of Changhua County.

The offshore windfarm will be constructed in 2021 and 2022. It will have the capacity to generate power that will be enough to provide clean energy for around one million Taiwanese households.

Last April, the Taiwan Government awarded Ørsted the right to connect Changhua 1 and 2a to Taiwan’s power grid. The Danish company was awarded the right to build another 920MW offshore wind facility in Taiwan through its Changhua 2b and 4 sites in June last year.

Ørsted Asia-Pacific president Matthias Bausenwein said: “With the Changhua 1 and 2a offshore windfarm, which is the first under the localisation rules to take final investment decision, Ørsted will invest significantly in Taiwan’s transition to renewable energy with substantial impact on local job creation and industrial development.

“We are proud that we have secured a very high level of local content on the project, and we will start the initial onshore works already next month.”