Orsted sign Worlds Largest PPA in Taiwan
Orsted and Taiwan-based TSMC have signed a corporate power purchase agreement (CPPA) for all the production from the former’s 920MW Greater Changhua 2b & 4 offshore wind farm.
The Danish energy giant said this makes 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 2025/2026, subject to grid availability and Orsted’s final investment decision.
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.
This is higher than the feed-in-tariff which was originally secured via Taiwan’s first offshore wind auction in June 2018.
Orsted said the PPA improves the project’s financial viability and helps it mature Greater Changhua 2b & 4 towards a final investment decision.
Orsted executive vice president and chief executive of offshore Martin Neubert said: “By sourcing renewable energy at an unprecedented scale, TSMC demonstrates strong support for the development of renewable energy.
“Signing the largest-ever corporate PPA with the world’s leading semiconductor company shows that Orsted is a trusted renewable energy partner for corporates and governments.”
Orsted Asia-Pacific president Matthias Bausenwein added: “The agreement between Orsted and TSMC signed today underlines Orsted’s pioneering role in the development of renewable energy in the Asia Pacific.
“In Taiwan, we are already constructing the Greater Changhua 1 & 2a offshore wind farm. Combined with our Greater Changhua 2b & 4 project, which is now one step closer to a final investment decision, we are making offshore wind a cornerstone in Taiwan’s transition from fossil-based to renewable energy.”
TSMC senior vice president of information technology and materials management & risk management JK Lin said: “TSMC is happy for this opportunity to collaborate with Orsted and not only expand the adoption of renewable energy, but also to work towards Taiwan’s energy transition to build world-class industrial environment.
“As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility to environmental protection.”
TSMC, the world’s largest semiconductor foundry, is also a world-leader in green manufacturing.