PPA signed for the full output of 920 MW wind farm in Taiwan

Ørsted and Taiwan Semiconductor Manufacturing Co Ltd (TSMC) have signed a corporate power purchase agreement (CPPA) wherein TSMC will offtake the full production from Ørsted’s 920 MW Greater Changhua 2b & 4 offshore wind farm in Taiwan, making it the largest-ever contract of its kind within renewable energy.

The 20-year fixed-price contract period starts once Greater Changhua 2b & 4 reach commercial operations in 2025/2026, subject to grid availability and Ørsted’s final investment decision.

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.”

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.

Matthias Bausenwein, President of Ørsted Asia-Pacific, commented: “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.”