Ørsted and Taiwan-based TSMC have signed a corporate power purchase agreement (CPPA). TSMC will take over the full production from the 920MW Ørsted Greater Changhua 2b & 4 offshore wind farm, making it the largest renewable energy contract of its kind.
Once Greater Changhua 2b & 4 reaches commercial operations in 2025/2026, the 20-year fixed-price contract period begins, subject to grid availability and the final investment decision by Ørsted.
“TSMC is happy for this opportunity to collaborate with Ørsted and not only expand the adoption of renewable energy, but also to work towards Taiwan’s energy transition to build world-class industrial environment. As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility to environmental protection.”J.K. Lin, senior vice president of information technology and materials management & risk management at TSMC.
Under the agreement with TSMC, the Greater Changhua 2b & 4 offshore wind farm will obtain a power price including T-RECs (Taiwan Renewable Energy Certificate) over the 20-year contract duration which is higher than the feed-in tariff that was originally achieved via the outcome of the first offshore wind auction in Taiwan in June 2018.
This increases the financial feasibility of the project, and allows Ørsted mature Greater Changhua 2b & 4 towards a final investment decision.
“We commend TSMC for their leadership in renewable energy sourcing and for taking tangible action to deliver on their ambitious greenhouse gas reduction targets. By sourcing renewable energy at an unprecedented scale, TSMC demonstrates strong support for the development of renewable energy. Signing the largest-ever corporate PPA with the world’s leading semiconductor company shows that Ørsted is a trusted renewable energy partner for corporates and governments.”Martin Neubert, executive vice president and CEO of Ørsted Offshore.
“The agreement between Ørsted and TSMC signed today underlines Ørsted’s pioneering role in the development of renewable energy in the Asia Pacific. In Taiwan, we are already constructing the Greater Changhua 1 & 2a offshore wind farm. Combined with our Greater Changhua 2b & 4 project, which is now one step closer to a final investment decision, we are making offshore wind a cornerstone in Taiwan’s transition from fossil-based to renewable energy.”Matthias Bausenwein, president of Ørsted Asia-Pacific.