JERA, the joint venture between Tepco and Chubu Electric Power Company in Japan, has entered into an agreement with Macquarie Capital to acquire an equity interest in another offshore wind project in Taiwan
The transaction follows on from JERA’s participation in the Formosa 1 offshore wind project, a deal announced in December 2018. The new deal represents a deepening of the relationship between JERA and Macquarie.
Construction of the 376-MW Formosa 2 project off the coast of Miaoli County, Taiwan is about to get underway.
A total of 47 offshore wind turbines will be installed and are due to enter 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 a feed-in tariff.
JERA will acquire a 49% equity interest in the project with support from Development Bank of Japan and will play a key role as a shareholder.
Earlier this year, JERA established a base in Taiwan and appointed engineers to participate in the Formosa 1 project and to deepen the company’s understanding of constructing and operating offshore wind projects.
In its ‘Future Vision towards 2025’ strategy, the joint venture announced its intention to “be a global leader in renewables and the transition to a clean energy economy.” It plans to undertake large-scale offshore wind projects in Japan and overseas markets in due course.
Completion of the transaction is subject to regulatory approvals.