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May 1, 2019

Ørsted takes FID on Taiwan’s Changhua 1 and 2a offshore windfarm

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

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

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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.

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.”

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Wind Power Market seeing increased risk and disruption

The wind power market has grown at a CAGR of 14% between 2010 and 2021 to reach 830 GW by end of 2021. This has largely been possible due to favourable government policies that have provided incentives to the sector. This has led to an increase in the share of wind in the capacity mix, going from a miniscule 4% in 2010 to 10% in 2021. This is further set to rise to 15% by 2030. However, the recent commodity price increase has hit the sector hard, increasing risks for wind turbine manufacturers and project developers, and the Russia-Ukraine crisis has caused further price increase and supply chain disruption. In light of this, GlobalData has identified which countries are expected to add the majority of wind power capacity out to 2030. Get ahead and download this whitepaper for more details on the current state of the Wind Power Market.
by GlobalData
Enter your details here to receive your free Report.

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