Ørsted takes final investment decision on Changhua 1 and 2a

Source: press release, 30 April 2019

photo: Ørsted
photo: Ørsted

Ørsted’s Board of Directors has taken the final investment decision (FID) on the Changhua 1 and 2a offshore wind farm in Taiwan. Prior to the FID, Taiwan’s Ministry of Economic Affairs approved Ørsted’s local supply chain plan, and subsequently Ørsted has signed a power purchase agreement (PPA) with Taipower at the feed-in-tariff level announced on 30 January 2019.

Changhua 1 and 2a will be located 35-50 kilometres off the coast of Changhua County and will have a capacity of approximately 900 MW, enough to supply around 1 million Taiwanese households with green power. The offshore wind farm will be constructed in 2021 and 2022.

Martin Neubert, Executive Vice President and CEO of Offshore at Ørsted, says, “Over the last couple of months, we have been working intensively to obtain establishment permit, renegotiate contracts, get our supply chain plan approved and sign the power purchase agreement. Thanks to a close and strong collaboration with our supply chain partners, Taipower and decision-makers in Taiwan, we have achieved all these milestones and can now take the final investment decision on this landmark project, which will be Taiwan’s largest offshore wind farm and demonstrate offshore wind’s potential to decarbonise energy systems in Taiwan and the Asia-Pacific region.”

Matthias Bausenwein, President of Ørsted Asia-Pacific, says, “With the Changhua 1 and 2a offshore wind farm, which is the first under the localisation rules to take final investment decision, Ørsted will invest significantly in Taiwan’s transition to renewable energy with substantial impact on local job creation and industrial development. We are proud that we have secured a very high level of local content on the project, and we will start the initial onshore works already next month.”

The information provided in this announcement does not change Ørsted’s previous financial guidance for the financial year of 2019 or the announced expected investment level for 2019.