TSMC signs power purchase agreement with Ørsted in Taiwan

9 July 2020 (Last Updated July 9th, 2020 11:55)

Taiwan Semiconductor Manufacturing Company (TSMC) has signed a corporate power purchase agreement with Danish renewable energy company Ørsted.

TSMC signs power purchase agreement with Ørsted in Taiwan
TSMC’s power purchase agreement with Ørsted will give the supplier a better energy price than the market rate. Credit: Mark König on Unsplash.

Taiwan Semiconductor Manufacturing Company (TSMC) has signed a corporate power purchase agreement (PPA) with Danish renewable energy company Ørsted.

Under the PPA, TSMC will purchase all power generated by the 920MW Greater Changhua 2b & 4 offshore wind farm, owned by Ørsted.

TSMC senior vice-president JK Lin said: “TSMC is happy for this opportunity to collaborate with Ørsted and not only expand the adoption of renewable energy, but also to work towards Taiwan’s energy transition to build world-class industrial environment.

“As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility for environmental protection.”

The 20-year fixed-price PPA will be effective once Greater Changhua 2b & 4 begins commercial operations in 2025/2026. It will also be subject to grid availability as well as Ørsted’s final investment decision.

Under the agreement, Greater Changhua 2b & 4 offshore wind farm will receive a higher price for power than its originally agreed feed-in tariff. This price will include Taiwan renewable energy certificate during the 20-year contract period.

Ørsted Offshore executive vice-president and CEO Martin Neubert said: “We commend TSMC for their leadership in renewable energy sourcing and for taking tangible action to deliver on their ambitious greenhouse gas reduction targets.

“By sourcing renewable energy at an unprecedented scale, TSMC demonstrates strong support for the development of renewable energy. Signing the largest-ever corporate PPA with the world’s leading semiconductor company shows that Ørsted is a trusted renewable energy partner for corporates and governments.”