Japanese company JERA has entered into an agreement with Macquarie Capital and Swancor to acquire 32.5% stake in the 128MW Formosa 1 offshore wind farm in Taiwan.
Located off the north-western coast of Taiwan, the first phase of 8MW of the utility-scale offshore wind project has been in operations since April 2017. The first phase includes two 4MW turbines.
The second phase of 120MW is under construction and is expected to be completed by the end of this year.
The project has secured support from Taiwan Power Company under a 20 year power purchase agreement (PPA) based on the FIT (Feed in Tariff) scheme.
Macquarie Capital and Swancor will continue as shareholders in the offshore wind project. The four shareholders are expected to begin operations of the first offshore wind farm in Taiwan by the end of 2019.
The completion of JERA’s stake acquisition in the wind project is subject to securing regulatory approvals.
JERA stated: “The offshore wind power business is a mature industry in Europe. However, JERA recognizes that this business is still at an early stage in Asia, including Japan, having much room to develop. JERA also believes that it is able to capitalize on its strength considering its business scale and expertise in conventional power project development.”
By participating in this project, JERA stated that it will gain knowledge and experience in the development and operation of offshore wind power, which could add significantly in moving forward with offshore wind projects across Japan and Asia.
Formosa 1 wind farm will be located 6km off the west coast of Miaoli district in the Taiwan Strait with water depths between 15 to 30m. The second phase will include 20 of Siemens Gamesa’s SWT-6.0-154 Direct Drive wind turbines with 6MW turbines. These wind turbines will be installed on monopile foundations.
Besides the Formosa 1 project JERA, has also invested in the Gunfleet Sands project in the UK. As part of its investment in the Taiwanese project, JERA will establish an operation base in the country to expand its business activity.