June 22, 2018 Read More →

Orsted, Northland Power win big in first Taiwan offshore wind auction

Recharge:

Global pacesetter Orsted emerged as the big winner in Taiwan’s first offshore wind auction, winning 920 MW in a competitive process that awarded 1.66 GW and followed May’s allocation by the country of an initial 3.84 GW. Orsted said its winning price across the two projects in the Changhua region was TWD2,548/MWh, equivalent to about €72.3/MWh ($84.20).

The other winner was Canada’s Northland Power, which secured 744 MW for its Hai Long 2 & 3 projects, according to a statement by Taiwan’s energy ministry.

The average price across all four projects was TWD2,224/MWh, equivalent to about $73.5/MWh, according to the ministry. That is significantly lower than expected–less than half the TWD5,850 projects can receive if they signed a deal this year under the existing feed-in-tariff (FIT) scheme.

The first allocation round in May was awarded on the basis of FITs, but the latest round was auction driven. The result is an average price that beats Taiwan’s average wholesale power cost, currently around TWD2,600.

The Orsted projects–which subject to environmental permits will be built by 2025–add to the 900 MW Orsted secured in the May allocation, bringing its total pipeline off the Asian island nation to 1.82 GW–all in Changhua. The Danish group said the second award will allow it to make maximum use of transmission assets off Changhua and serve the projects from a common hub.

Northland is developing Hai Long 2&3 with local partner Yushan Energy, which holds a 40% stake. Northland had already been allocated 300MW under the earlier FIT-based allocation process. The projects are also due for grid-connection by 2025.

More: Orsted and Northland share 1.66GW in second Taiwan round

 

Comments are closed.