Yushan Energy and Northland Power signed a memorandum of understanding for agreement with MHI Vestas Taiwan on Nov. 27 for the latter to supply wind turbines for a projected 300 MW wind field to be developed by the former two jointly.
In addition to the wind field, scheduled for completion by 2024, MHI Vestas also secured priority negotiation right for agreement for supply of wind turbines for another two wind fields, totaling 744 MW in capacity and scheduled for completion by 2025, of the joint-venture offshore-wind power project of Yusan and Northland, dubbed "Hailong Offshore Wind Power."
The joint venture won the right for developing the 300 MW wind field from the Ministry of Economic Affairs (MOEA) via screening process in late April before securing the development right for the other two wind fields, with respective capacities of 232 MW and 512 MW and at wholesale power rates of NT$2,2245/kWH and 2.5025/kWh, in late June via open bidding. The three wind fields have installation capacities totaling 1,044 MW.
Photo courtesy of TechNews
Mike Crawley, president and chief executive officer of Northland, pointed out, however, that the aforementioned MOU will be valid only if the joint venture manages to sign power purchase agreement (PPA) for the 300 MW wind field in 2018 or 2019 and in the latter case, the wholesale power rate must be similar to that of 2018. Should there be drastic change in the 2019 wholesale power rate, the Hailong project will be affected greatly and may even be aborted.
Chen Tsung-hua, chairman and CEO of Yushan Energy and superintendent of Hailong project, urged the government to help developers complete signing PAA with Taipower, noting that validation of the MOU will significantly brighten the outlook of MHI Vestas and encourage the company, as well as other prospective wind-power equipment suppliers, to step up their investments.
Philippe Kavafyan, CEO of MHI Vestas, stressed that experience in Europe over the past 20 years shows that success of offshore wind power projects hinges on close cooperation among governments, developers, wind turbine manufacturers, and local supply chains, adding that Taiwan needs to institute a steady system and legal framework to facilitate the development of the wind-power industry and become bellwether in Asia-Pacific in this field.
(Collaborative meid: TechNews, first photo courtesy of Northland Power)