World's largest offshore wind farm developer Ørsted has signed what it says is the world’s largest renewables corporate power purchase agreement with Taiwan-based TSMC.
Under the agreement, TSMC, the world’s largest semiconductor foundry, will offtake the full production from Ørsted’s 920MW Greater Changhua 2b & 4 offshore wind farm, making it, according to Ørsted, the largest-ever contract of its kind within renewable energy.
Greater Changhua 2b & 4 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 920MW and will be located in the Taiwan Strait approx. 50 km off the coast of Changhua County.
The 20-year fixed-price contract period starts once Greater Changhua 2b & 4 reaches commercial operations in 2025/2026, subject to grid availability and Ørsted’s final investment decision.
Under the agreement with TSMC, the Greater Changhua 2b & 4 offshore wind farm will receive a price for power including T-RECs (Taiwan renewable energy certificate) during the 20-year contract period that is higher than the feed-in-tariff which was originally secured via the outcome of Taiwan’s first offshore wind auction in June 2018. This improves the project’s financial viability and helps Ørsted mature Greater Changhua 2b & 4 towards a final investment decision, the Danish company said.
Greater Changhua 2b & 4 will be located adjacent to the 900MW Greater Changhua 1 & 2a offshore wind farm which Ørsted is currently constructing. Ørsted is also the co-owner of Taiwan’s first commercial-scale offshore wind farm, Formosa 1, which was extended to its current capacity of 128MW in October 2019.