IEEFA
Date: July 8, 2020

Ørsted and Taiwan-based TSMC have signed a corporate power purchase agreement (CPPA) for all the production from Ørsted’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 reach commercial operations in 2025/2026, subject to grid availability and Ørsted’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 that is higher than the feed-in-tariff which was originally secured via Taiwan’s first offshore wind auction in June 2018.

Ørsted said the PPA improves the project’s financial viability and helps it mature Greater Changhua 2b & 4 towards a final investment decision.    [FULL  STORY]