Japanese energy group JERA, , a joint venture between Tokyo Electric Power and Chubu Electric Power, has agreed to acquire a 49% stake in the 376MW Formosa 2 project being developed off the west coast of Taiwan.
Completion of the transaction is subject to regulatory approvals, said a press note from JERA.
This transaction follows on from JERA’s participation in the Formosa 1 offshore wind project announced in December 2018, and it represents an important deepening of the relationship between JERA and Macquarie.
The 376MW Formosa 2 project, located off the coast of Miaoli County, is preparing to commence construction from this October to install 47 wind turbines, with the expectation to reach commercial operation by the end of 2021.
The project has secured the support of Taiwan Power Company under a 20-year Power Purchase Agreement based on the FIT (Feed in Tariff) scheme. JERA will be acquiring 49% equity interest of the project with support from Development Bank of Japan Inc. and will play a key role as a major shareholder.
In association with JERA’s participation in the Formosa 1 project earlier this year, JERA has newly established an operation base in Taiwan to expand business activity and dispatch engineers to contribute to the project and to gain knowledge and experience in construction and operation of the offshore wind power generation.
JERA will leverage its local base as well as experience, synergies and benefits from the successive projects to promote the efficient development, management and operation of its offshore wind power generation business. Moreover, JERA aims to further contribute to the projects and enhance profitability by securing substantial portion of equity interests from the early construction stage.
JERA has announced its Future Vision towards 2025 to be a “global leader in LNG and renewables sparking the transition to clean energy economy”. Through undertaking large-scale offshore wind power generation development in both the domestic and overseas markets, JERA will sustainably further enhance its enterprise value.