Ørsted takes FID for Greater Changhua 2b and 4 offshore windfarms

920 MW of grid capacity for Greater Changhua 2b and 4 was awarded in June 2018 in Taiwan’s first competitive price-based auction, a process that did not include mandatory local content requirements.

Ørsted subsequently secured long-term revenues for the projects by signing a corporate power purchase agreement (PPA) in July 2020 with Taiwan Semiconductor Manufacturing Co Ltd (TSMC), this being the largest-ever contract of its kind in renewable energy. 

Ørsted said Greater Changhua 2b and 4 “has a robust business case” which will create long-term value for stakeholders and good visibility of costs has been achieved, utilising Ørsted’s network of regional and global supply chain relationships. The timeline for completion of the project is the end of 2025.

The Greater Changhua 2b and 4 projects will be funded by capital provided by Ørsted Group combined with debt capital sourced from the domestic Taiwanese market, backed by an Ørsted A/S parent company guarantee.

Ørsted general manager Taiwan Christy Wang said, “In dynamic market conditions, we have overcome challenges including site conditions, infrastructure, project engineering and procurement to bring the Greater Changhua 2b and 4 projects to a final investment decision. 

“We are proud the projects will implement the latest environmentally friendly technology such as suction bucket jacket foundations, which are being used for the first time in the Asia Pacific region. With support from our suppliers and stakeholders, the Ørsted team is ready to open a new chapter for offshore wind in Taiwan in harmony with nature and communities.” 

Located 35-60 km off the Changhua coast, the Greater Changhua 2b and 4 offshore wind farms have obtained all environmental impact assessment approvals. 

Construction of the offshore windfarms is expected to begin with onshore construction in 2023. Fabrication of components will take place in 2023-2024 and completion of offshore construction is expected by the end of 2025.