JERA to buy major stake in Taiwan's 376-MW Formosa II offshore wind project

JERA Co, a joint venture between Tokyo Electric Power (TYO:9501) and Chubu Electric Power (TYO:9502), has agreed to take a 49% stake in the 376-MW Formosa II offshore wind project in Taiwanese waters.

The Japanese firm said on Wednesday it will purchase the interest from Macquarie Capital, a unit of Australia’s Macquarie Group Ltd (ASX:MQG), with support from Development Bank of Japan Inc. After JERA becomes the scheme’s majority shareholder, Macquarie will hold a 26% stake, while its partner Swancor Renewable Energy Co will own 25%.

The transaction will be completed once regulatory approvals are received, JERA said without providing financial information.

Formosa II will be located near the site of the 128-MW Formosa I wind farm, whose Phase II produced first power last month. JERA already owns a 32.5% interest in Formosa I, in which Denmark’s Ørsted has the largest stake of 35%.

Construction of the 376-MW offshore wind park off the coast of Miaoli County is planned to begin this month, according to the statement. Its 47 turbines are scheduled to be switched on by end-2021. The project secured grid connection capacity and the right to sell power under Taiwan’s 20-year feed-in tariff (FiT) programme in April. Taiwanese utility Taiwan Power Co (Taipower) will be the power off-taker.

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