Ørsted and Taiwan-based TSMC have signed a corporate power purchase agreement (CPPA).
TSMC will offtake the full production from Ørsted’s 920 MW Greater Changhua 2b & 4 offshore wind farm, making it the largest-ever contract of its kind within renewable energy. The 20-year fixed-price contract period starts once Greater Changhua 2b & 4 reaches commercial operations in 2025 or 2026, subject to grid availability and Ørsted’s final investment decision.
“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 to build world-class industrial environment,” says J.K. Lin, senior vice president of information technology and materials management and risk management at TSMC.
“As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility to environmental protection,” he adds.
Under the agreement with TSMC, the Greater Changhua 2b & 4 offshore wind farm 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.
Greater Changhua 2b & 4 will be Ørsted’s third offshore wind farm in Taiwan, subject to final investment decision which Ørsted expects to take in 2023. The wind farm will be located in the Taiwan Strait – approximately 50 km off the coast of Changhua County.
Photo: Ørsted’s Green Solutions web page
Original source: North American Wind Power