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January 3, 2019

Ørsted announces delays on 900MW Taiwanese offshore wind projects

Danish offshore wind company Ørsted has announced the delay of an establishment permit and 2018 power purchase agreement (PPA) on its 900MW Taiwanese offshore wind farm projects.

Danish offshore wind company Ørsted has announced the delay of an establishment permit and 2018 power purchase agreement (PPA) on its 900MW Taiwanese offshore wind farm projects.

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In April, Ørsted secured a contract from Taiwan’s Ministry of Economic Affairs to connect the 605MW Changhua 1 and the 295MW Changhua 2 to the grid in 2021.

Ørsted Offshore CEO Martin Neubert said: “We’re disappointed with the process and the delay of the establishment permit and PPA. We will now pause and revisit all our project activities, the timeline of the projects, and our supply chain commitments and contracts as we had assumed signing of the PPA in 2018.

“We’re very concerned about the suggested feed-in-tariff level for 2019, as well as the newly proposed cap on annual full-load hours. We will need to see significant changes to these proposals before we can progress any further towards a final investment decision on the projects.”

"We’re very concerned about the suggested feed-in-tariff level for 2019, as well as the newly proposed cap on annual full-load hours."

In June, the Danish company secured the right to build an additional 920MW Taiwanese offshore wind capacity from its Greater Changhua sites, which were to be built in 2025, subject to its final investment decision.

In November 2018, the Taiwanese government proposed a 2019 feed-in-tariff of TWD5,106 (€145)  per MWh and suggested a production cap of 3,600 annual full-load hours.

Neubert further added: “The proposed retrospective changes would jeopardise the creation of a local offshore wind supply chain, harm the planned transition to renewable energy and cause significant uncertainty among international investors looking to Taiwan.

“Only with a stable and predictable policy framework, Taiwan has the potential for developing large-scale clean power production while creating thousands of local jobs and becoming a hub for offshore wind in Asia-Pacific.”

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Free Report
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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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