A Japanese group of investors led by trader Sojitz has signed an agreement with German wind farm developer wpd to acquire 27% stake in the 640MW Yunlin offshore wind project in Taiwan
Under the terms of the deal, the Sojitz-led group will purchase minority stake in Yunlin HD wind farm for undisclosed amount.
The group comprises JXTG Nippon Oil & Energy, Chugoku Electric Power, Chudenko, and Shikoku Electric Power.
Subject to completion of necessary procedures, the acquisition is planned to be completed in the latter half of May 2019.
wpd M&A head Helge Rau said: “With the acquisition of the consortium around Sojitz as a co-investor we could achieve another important milestone for the project securing the equity financing of the so far largest offshore wind farm in Taiwan.
“We are looking forward to the co-operation with this group of re-known investors and are well on track to finalize the overall financing of the project in due course.”
The firm plans to commence offshore construction works at the project in March 2020 with commissioning slated by December 2021. It is located 8km off the coastline.
Featuring 80 turbines of the 8MW-class developed by Siemens-Gamesa, the wind energy project is expected to be the largest of its kind being realized in Taiwan.
wpd said in a statement: “The debt financing of the project including well-known Taiwanese as well as international banks and financial institutions is close to its finalization as well.”
Power generated by Yunneng wind farm will be sold to Taiwan Power Company over a 20-year period, using a feed-in tariff scheme under Taiwan’s Renewable Energy Development Act.
By 2025, Taiwan aims to have a total of 5.5GW offshore wind power. It plans to abandon all nuclear power and focus on investing in renewable energy as a substitute energy source.