June 22 (Renewables Now) - Denmark's Ørsted A/S (CPH:ORSTED) said today it has won 920 MW of offshore wind capacity in Taiwan's first offshore wind auction, whose results have been announced by the economic ministry.
The offshore wind developer's winning bid price in the "highly competitive auction process" was TWD 2,548 (USD 84.1/EUR 72.2) per MWh.
The successful projects are in the Changhua region and add to the 900 MW awarded to Ørsted in a grid allocation process in April at a higher feed-in tariff (FiT), meaning the company now has an offshore wind pipeline in Changhua of 1,820 MW. Subject to getting relevant permits and taking final investment decision, Ørsted will build the newly won projects in 2025.
The Danish group explained that the April award will help facilitate the investments needed to establish and mature a local supply chain, which in turn will support its next projects. Its bid in the first offshore wind auction also takes into account the advantages of operating all the company's Greater Changhua projects from the same hub, transmission synergies, and learning from Ørsted's first Greater Changhua projects, which are to be procured and constructed in the 2019-2021 period.
Ørsted will now work to obtain the establishment permit and to secure the FiT by signing a power purchase agreement (PPA) with Taipower. Construction could start in 2023, with commissioning participated in 2025.
(TWD 10 = USD 0.330/EUR 0.283)