Danish energy giant Ørsted and Taiwanese chipmaker TSMC signed a corporate power purchase agreement (CPPA) for TSMC to purchase all the production from Ørsted’s 920 MW Greater Changhua 2b & 4 offshore wind farm.
According to Ørsted, this will make it the largest-ever contract of its kind within renewable energy. The contract has been signed with a fixed-price and will be in effect for 20 years, from the moment the project enters commercial operation in 2025/2026.
Ørsted won the rights to build the Greater Changhua 2b & 4 offshore wind project at an auction in June 2018 with a winning bid price of NT$2548 (US$86.55) per megawatt hour.
Under the agreement, the Greater Changhua 2b & 4 offshore wind farm will receive a price for power including T-RECs (Taiwan renewable energy certificate) that is higher than the feed-in-tariff originally secured at the offshore wind auction in June 2018.
Matthias Bausenwein, President of Ørsted Asia-Pacific, said, “The agreement between Ørsted and TSMC signed today underlines Ørsted’s pioneering role in the development of renewable energy in the Asia Pacific. In Taiwan, we are already constructing the Greater Changhua 1 & 2a offshore wind farm. Combined with our Greater Changhua 2b & 4 project, which is now one step closer to a final investment decision, we are making offshore wind a cornerstone in Taiwan’s transition from fossil-based to renewable energy.”
J K Lin, Senior Vice President of Information Technology and Materials Management & Risk Management at TSMC, 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 to environmental protection.”
The Greater Changhua 2b & 4 offshore wind farm will be Ørsted’s third offshore wind farm in Taiwan, subject to final investment decision which Ørsted expects to take in 2023. The wind farm will have a capacity of 920 MW and will be located in the Taiwan Strait approximately 50 km off the coast of Changhua County.
The offshore wind farm will be adjacent to the 900 MW Greater Changhua 1 & 2a, which Ørsted is currently constructing.