Taiwan Semiconductor Manufacturing Co Ltd (TPE:2330), or TSMC, has signed a power purchase agreement (PPA) for the entire output of a 920-MW offshore wind park, the project’s developer, Ørsted AS (CPH:ORSTED), said today.
The Danish energy major said its third offshore wind farm in Taiwan, the Greater Changhua 2b & 4 project, is now one step closer to a final investment decision (FID). It secured a feed-in tariff (FiT) in Taiwan’s first offshore wind auction two years ago, but TSMC has offered to pay more for the power and Taiwan renewable energy certificates (T-RECs).
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“As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility to environmental protection,” said JK Lin, TSMC senior VP of IT and materials management & risk management.
Supply under the 20-year fixed-price corporate PPA will commence once the wind farm reaches commercial operations in 2025/2026, subject to grid availability and Ørsted’s FID. This is expected to be taken in 2023.
Taipower is expected to provide Greater Changhua 2b & 4 with grid access in 2025. First power will be generated soon after that, while full commissioning is expected in 2026.
Ørsted is already construction the 900-MW Greater Changhua 1 & 2a offshore wind park. It said the TSMC PPA for the next phase of the project will have no impact on its financial guidance for and investment levels in the current year.