A power purchase agreement (PPA) has been signed for the Hai Long 2A offshore wind project in Taiwan, based on a 300 MW feed-in-tariff allocation.
Northland Power and its partner Yushan Energy Co Ltd own 60% and 40% of Hai Long 2A, respectively.
Hai Long 2A is the first of the three Hai Long projects with a total capacity of 1,044 MW to receive its PPA.
Hai Long 2A entered into a 20-year power PPA with Taipower at the 2019 FIT rate of NT$6.2795/kWh (US$0.2039) and NT$4.1422/kWh (US$0.1345) for the first and second 10-year periods, respectively.
In 2015, the Taiwan Government implemented the FIT programme to provide long-term contracts designed to inaugurate its offshore wind sector. Project economics and financing details will be finalised as development progresses.
Northland and Yushan Energy are also engaged in developing the Hai Long 2B and Hai Long 3 offshore wind projects in Taiwan.
In June 2018, the projects were allocated grid capacity for connection in 2025 under Taiwan’s auction programme and are expected to execute their respective PPAs with Taipower in 2019.