Canada-based Northland Power Inc (TSE:NPI) and Yushan Energy Pte Ltd of Singapore have secured grid capacity in Taiwan for 300 MW of offshore wind.
The allocation has been made by the Taiwan Bureau of Energy (BOE), Northland said today. This milestone advances the Hai Long 2 project’s ability to execute a 20-year power purchase agreement (PPA) under Taiwan’s feed-in tariff (FIT) scheme, the developer added.
Hai Long 2, a 60/40 joint project of Northland and Yushan, got environmental permit earlier this year and is currently in advanced development. The turbine supplier and construction contractors are being selected.
The project partners are working to complete the remaining regulatory and permit-related activities needed to execute the power contract in late 2018. Northland said that project economics and financing details will be finalised as development progresses.
The BOE award places Northland and Yushan Energy in “a favourable position” to progress other Taiwanese projects for submission into upcoming procurements, the Canadian energy company said. With the Hai Long 2 project, Northland’s offshore wind capacity would top 1.45 GW gross or 1.07 GW net for by 2024.
Other experienced offshore wind developers such as Ørsted SA (CPH:ORSTED) of Denmark and Germany's Wpd AG also secured grid capacity for projects in Taiwan.