Ørsted, the Danish multinational renewable energy company, has signed a corporate power purchase agreement (CPPA) with the leading Taiwan Semiconductor Manufacturing Company (TSMC).
In this offtake agreement, the world’s largest of its kind within the renewable energy sector, TSMC will control the full production of Ørsted’s 920MW Greater Changhua 2b and 4 offshore wind farm.
J.K. Lin, Senior Vice President of Information Technology and Materials Management and Risk Management at TSMC, said:
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. As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility for environmental protection.”
The Greater Changhua 2b and 4 offshore wind project in Taiwan
The Greater Changhua 2b and 4 will be Ørsted’s third offshore wind farm in Taiwan.
The 920MW offshore wind farm will be built adjacent to the 900MW Greater Changhua 1 and 2a offshore wind farm, Ørsted is currently constructing approximately 50 km off the coast of Changhua County, Taiwan.
Taipower, Taiwan’s transmission system operator, will build a new transmission grid for the Greater Changhua 2b and 4 offshore wind projects.
Full access to the grid is expected in late 2025 and Ørsted expects to fully commission the wind farm in 2026.
Matthias Bausenwein, President of Ørsted Asia-Pacific, said: “The agreement between Ørsted and TSMC underlines Ørsted’s pioneering role in the development of renewable energy in the Asia Pacific.
In Taiwan, we are already constructing the Greater Changhua 1 and 2a offshore wind farm. Combined with our Greater Changhua 2b and 4 projects, 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.”
A mutually beneficial agreement
According to a press release from Ørsted, the contract states that the Greater Changhua 2b and 4 offshore wind farm will receive a fixed price for power and Taiwan Renewable Energy Certificates ( T-RECs) during the 20-year contract period.
This deal will improve the project’s financial viability and helps Ørsted mature The Greater Changhua 2b and 4 towards a final investment decision, expected to be finalized in 2023.
Martin Neubert, Executive Vice President and CEO of Ørsted Offshore, said: “We commend TSMC for their leadership in renewable energy sourcing and for taking tangible action to deliver on their ambitious greenhouse gas reduction targets.
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 Ørsted is a trusted renewable energy partner for corporates and governments.”
Ørsted is setting an example of how renewable energy companies can successfully collaborate in decarbonization efforts.