aiwan's Ministry of Economic Affairs has announced the outcome of its first offshore wind auction. Ørsted was awarded 920MW capacity for its offshore wind sites in the Changhua region. Subject to Ørsted obtaining relevant permits and taking final investment decision, the projects are to be built in 2025. Ørsted's winning bid price was TWD2,548 (approx. EUR72.3) per MWh.
With today's result, Ørsted has a total offshore wind pipeline in Changhua of 1,820MW including the 900MW which were awarded to Ørsted in April.
Martin Neubert, Executive Vice President and CEO of Ørsted Wind Power, says: “Following a highly competitive auction process, we're very pleased with adding further value-creating capacity in Changhua.”
“Today's results are promising for Taiwan's transition to renewable energy. The outcome of the auction proves once again that when governments commit to ambitious buildout targets and create stable, transparent and good framework conditions, the offshore wind industry will deliver.”
Matthias Bausenwein, General Manager for Ørsted in Asia-Pacific, says: “Ørsted has come to Taiwan and set up its Asia-Pacific hub here. We are very happy to see the offshore wind industry in Taiwan mature and to be able to significantly contribute to this development. With the additional projects in 2025, we have a solid pipeline on which we will further strengthen our local presence.”
Ørsted's bid was based on the following drivers:
Next step for Ørsted's projects is to obtain the establishment permit and to secure the feed-in-tariff by signing a power purchase agreement with Taipower. Subject to Ørsted taking final investment decision, Ørsted will start construction works in 2023 and expects the projects to be commissioned in 2025.
About Ørsted in Taiwan
As the world leader in offshore wind, Ørsted has installed more than 1,200 offshore wind turbines with a total capacity of approx. 5.1GW and has a further 3.8GW under construction. In addition, Ørsted has been awarded the above mentioned approx. 1.8GW offshore wind capacity in Taiwan, and secured the right to build approx. 1.1GW offshore wind capacity in Germany by 2025. It is Ørsted's ambition to have installed a total offshore wind capacity of 11-12GW worldwide by 2025.
The information provided in this announcement does not change Ørsted's previous financial guidance for the financial year of 2018 or the announced expected investment level for 2018.