Japanese consortium Starwind Offshore has acquired a 27% stake in Yunneng Wind Power from German wind farm developer wpd group.
Starwind Offshore consortium was established jointly by JXTG, Sojitz, Chugoku Electric Power, Chudenko Corporation and Shikoku Electric Power.
With this deal JXTG has acquired a 6.75% stake in Yunlin Holdings, the holding company of Yunneng.
This deal is a first for JXTG’s in the power generation and offshore windfarm business in Taiwan.
By the end of 2021 Yunneng plans to build a 640MW offshore wind farm in Yunlin County and sell the clean energy to Taiwan Power Company for a period of two decades through a feed-in tariff scheme under Taiwan’s Renewable Energy Development Act.
Once operational, this project will support Taiwan’s plan to generate 5.5GW of offshore wind power by 2025 along the west coast of the region.
With this investment JXTG plans to gain expertise in the offshore wind power sector, which holds great potential in Taiwan as well as in other parts of the globe.
The deal will also enable the Japanese firm to contribute towards a low-carbon society.
Last November, the Taiwanese government set ambitious renewable energy targets to be met by 2025.
Attractive feed-in tariffs, a stable regulatory framework and the country’s strategic location have seen foreign firms keen to invest in this burgeoning market. The west coast of Taiwan has been designated as the development area for offshore wind power.