Ørsted and TSMC sign world’s largest renewables PPA

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

TSMC is the world’s largest semiconductor foundry and a leader in green manufacturing.TSMC senior vice president of information technology and materials management and risk management J K Lin 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.”

Under the agreement with TSMC, the Greater Changhua 2b & 4 offshore windfarm 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.

Ørsted Offshore executive vice president and chief executive Martin Neubert said the company commended TSMC for its leadership in renewable energy sourcing and for tangible action to deliver on its ambitious greenhouse gas reduction targets. “By sourcing renewable energy at an unprecedented scale, TSMC has demonstrated strong support for the development of renewable energy.”

Greater Changhua 2b & 4 will be Ørsted’s third offshore windfarm in Taiwan, subject to a final investment decision, which the company expects to take in 2023. The windfarm will have a capacity of 920 MW and will be located in the Taiwan Strait approximately 50 km off the coast of Changhua County.

Taipower, Taiwan’s transmission system operator, will be building new transmission grid to accommodate buildout of offshore wind in Taiwan. With the current grid construction timeline, Taipower is expected to provide Greater Changhua 2b & 4 with grid access in late 2025. Ørsted expects to generate the first power from Greater Changhua 2b & 4 shortly thereafter and to fully commission the windfarm in 2026.

Greater Changhua 2b & 4 will be located adjacent to the 900-MW Greater Changhua 1 & 2a offshore windfarm, which Ørsted is currently constructing.

Ørsted is also the co-owner of Taiwan’s first commercial-scale offshore windfarm, Formosa 1, which was extended to its current capacity of 128 MW in October 2019.