December 13 (Renewables Now) - Taiwanese utility Taiwan Power Co (Taipower) has agreed to buy the output of the 376-MW Formosa 2 offshore wind project, part of a complex that will reach half a gigawatt in Taiwanese waters.
Taipower has signed a 20-year power purchase agreement (PPA) with Taiwan-based chemical products maker Swancor Holding Co Ltd, which is partnering in the project with Australia’s Macquarie Group Ltd (ASX:MQG).
Swancor said in a press release on Wednesday that the contracted capacity will be able to meet the needs of around 380,000 homes per year. In April the project secured grid connection capacity and the right to sell power under a feed-in tariff (FiT). A significant reduction of the FiT from next year was proposed just several days ago in Taiwan.
Formosa 2 follows the Formosa 1 project, a small portion of which has already been completed. More specifically, two turbines in its pilot 8-MW phase were commissioned in October 2016, while the 120-MW Formosa 1 Phase 2 is due to be completed by 2020. Formosa 1 is a project of Swancor, Macquarie and Denmark’s Ørsted A/S (CPH:ORSTED).