Zhong Neng offshore wind project
Vestas has secured a 295 MW order for the Zhong Neng offshore wind project, located off the coast of Changhua County, Taiwan. The project is being jointly developed by Taiwan based China Steel Corporation (CSC) and Danish fund manager Copenhagen Infrastructure Partners (CIP). This marks the third offshore project between Vestas and CIP in Taiwan, with a combined capacity of almost 900 MW.
The project will feature 31 Vestas V174-9.5 MW turbines. Upon the project completion, Vestas will also service the turbines through a 15-year Active Output Management (AOM 5000) energy-based Service Agreement, optimising energy production for the project.
“We are pleased to begin our partnership with CSC and extend our cooperation with CIP on the Zhong Neng project,” quoted Purvin Patel, President at Vestas Asia Pacific (APAC). “Taiwan is a key market for Vestas Asia Pacific, and this is a great milestone for us and our partners that will deliver both competitive renewable energy and local economic development.”
“With this latest project we continue to leverage our strong supply chain in Taiwan,” says Alex Robertson, Vice President and General Manager at Vestas Taiwan. “Beyond our considerable investment in and development of the local supply chain, we are also building up our offshore service fleet, adding another long-term contract to our portfolio. I am delighted that CSC and CIP have entrusted Vestas with the operation and maintenance of the wind turbines to 2039.”
“We are happy to enter the construction phase with our strong partner, Vestas,” says Joris Hol, CEO of Zhong Neng Project. “Driven by Zhong Neng Project’s strong dedication in local economic development, Vestas has made significant progress in setting up a strong local supply chain. We are confident we can deliver on Taiwan’s local supply chain ambitions delivering quality components.”
Marina Hsu, Managing Director of Copenhagen Infrastructure Service Co., which is owned by CIP-managed funds, says, “Together with CSC, we are delighted to expand our solid collaboration with Vestas and the local supply chain. We believe we can build on the successful foundation established by the previous Changfang and Xidao projects and thereby mature the local supply chain for the Zhong Neng project to further enhance quality, delivery, and competitiveness.”
Deliveries for this project are expected to begin in 2023 and it is expected to be fully commercially operational in 2024. Once completed, the project will generate enough clean power to supply up to 300,000 Taiwanese households annually.
TPC Offshore Wind Generation Project Phase 2
Vestas has secured a 295 MW order for 31 Vestas V174-9.5 MW wind turbines from Foxwell Energy Corporation Ltd. for the TPC Offshore Wind Generation Project Phase 2 in Taiwan. The project is developed and owned by Taiwan Power Company (TPC) and will be constructed by Foxwell. This marks the third project between Vestas and Foxwell in Taiwan, with Zhangyuan and Beiyuan onshore wind farms as their previous collaborations.
Located off the coast of Changhua County, the Taichung port will be used for the pre-assembly work of the turbines. Upon the project completion, Vestas will also service the turbines through a 14-year full scope, production-based availability guarantee, Service Agreement, ensuring maximum energy production for the project.
“We are delighted to work with our long-term partner Foxwell again,” says Purvin Patel, President of Vestas Asia Pacific. “With this order, Vestas continues its ambition to be a leader in this market and we remain committed to contribute to Taiwan’s clean energy target, in close partnership with our customers.”
“With this significant order, I am honoured that these heavyweights of Taiwanese energy and industry have placed their trust in Vestas,” says Srdan Cenic, Vice President and Head of Offshore Sales at Vestas Asia Pacific. “Here at Vestas, we continue to make significant investment and knowledge transfer into the market, to further develop Taiwan as a leader in offshore wind energy. Vestas now has 1.2 GW of V174-9.5 MW™ projects with long-term service contracts under development or construction in Taiwan, and we are fully committed to our Taiwanese service operations and being the best partner for the long-term business needs of our customers such as TPC and Foxwell.”
“This is the first sizable offshore wind project that is wholly invested by a Taiwan company (TPC), and the first being undertaken by a leading Taiwan turn-key EPCI contractor in the Taiwan Straits, so the Government has given a great deal of attention to us. We are most pleased to work with a reputable company like Vestas who have worked diligently on developing local supply chains for the wind turbines, and this may well be the beginning of a long-term relationship between our two companies in the Taiwan offshore wind market,” says David Poo, President of Foxwell Energy.
Deliveries for this project are expected to begin in 2024 and it is expected to be commercially operational in 2025.
The V174-9.5 MW turbines being supplied by Vestas for the projects will be based on local manufacturing and sourcing of 19 components from local Taiwan-based suppliers. Vestas’ supply chain and suppliers in Taiwan have so far invested close to EUR 280 million in local supply chain infrastructure, which has resulted in more than 1,500 new green jobs, underlining how Vestas together with local partners continue to strengthen the wind industry in Taiwan.
Vestas has been active in Taiwan for more than 20 years. With these two orders, Vestas takes its offshore wind project volume in Taiwan to almost 1.2 GW. In addition, Vestas also has close to 350 MW of onshore wind installed or under construction, while currently servicing 250 MW of onshore turbines.