CIP reaches financial close on Taiwanese offshore windfarm

The project received approval from the Taiwanese Government for its local content plan in December 2019 and is said to have the highest level of localisation of any project in the region.

CIP will localise production of the jacket foundations, pin piles, onshore substation and transport and installation contracts alongside other turbine components. The wind turbines will be supplied by MHI Vestas who will deliver 62 of the company’s 9.5-MW turbines.

The windfarm will be financed through a combination of equity and senior loans from a consortium of 25 international and Taiwanese banks and financial institutions including CI II, Taiwan Life Insurance and TransGlobe Life Insurance, as well as six export credit agencies.

The total project financing raised from the banks and financial institutions is approximately US$3Bn.

CIP acquired the Changfang and Xidao project in 2017. It obtained grid allocation in 2018. In 2019, the project entered into a 20-year PPA with state-owned Taiwan Power Company.

The Changfang and Xidao project is owned by CI II and CI III with a minority stake owned by two local life insurance companies, Taiwan Life Insurance and TransGlobe Life Insurance. CIP will lead the project through its construction phase with expected start of commercial operations in Q1 2024.

CIP APAC chairman Anders Eldrup said, “This project is leading the way for the complete APAC region and its adoption of offshore wind.

CIP partner Michael Hannibal said, “Reaching financial close marks a major milestone for the Changfang and Xidao project. We are really excited about entering the construction phase.”

Changfang Xidao chief executive Jesper Krarup Holst said, “Since we entered the Taiwanese offshore wind market in 2017 we have worked intensively with Taiwanese companies and the government to build up the local supply chain and are proud to deliver the project with the highest level of localisation in Taiwan to date.”

CIP engaged Copenhagen Offshore Partners (COP) to lead the development and construction of the project. To support development the project it has entered into contracts with New Power Partners, PeakWind, Lautec, Wood Thilsted Partners, Bech-Bruun, C2Wind and JUM-BO Consulting Group.