APAC: Macquarie considers Formosa I offshore wind stake sale 

15 May 2018 - 12:00 am UTC

Macquarie Capital is considering selling part of its 50% stake in Taiwan’s first offshore wind farm in an auction, sources familiar told Inframation.

It is understood Macquarie’s principal investment arm is looking to sell down its stake to less than 35% in the 128MW Formosa I wind farm before a final investment decision is made on the 120MW second phase of the project this month.

Macquarie Capital and Ørsted agreed to acquire 50% and 35% stakes in the 128MW Formosa I wind farm project from local developer Swancor Renewables in January 2017.

ANZ, BNP Paribas, Cathay United Bank, Credit Agricole, DBS, Deutsche Bank, Entie Commercial Bank, Fubon Bank, KGI Bank, MUFG Bank, Société Générale and one other bank have agreed to provide a 15-year NTD 15bn (USD 503.4m) syndicated loan for the project’s second phase.

Financial close is expected to be reached by the end of this year. The project JV formed by Swancor, Macquarie and Ørsted – Formosa I (Haiyang) Offshore Wind Company – plans to start construction of phase two in 2019.

The 8MW first phase of the demonstration project started operations in late 2016 following installation of two 4MW wind turbines 3km off the island’s northwest coast, in Miaoli county.

In December 2017, a 20-year power purchase agreement with a feed-in-tariff of TWD 5.8 per kWh was secured for the second phase of the project with state utility Taipower.  

The Formosa I wind farm is the island’s first demonstration offshore wind farm. 

The first phase was financed by a NTD 2.5bn syndicated loan from BNP Paribas, Cathay United Bank and Entie Commercial Bank.

Earlier this year, Macquarie Capital signed an agreement with its local partner Swancor Renewables for German utility EnBW to join a consortium developing another Taiwan offshore wind project: the 2GW Formosa III Offshore Wind Project.

EnBW agreed to take a 37.5% stake in the project, which was not among the projects selected in the process undertaken by Taiwan’s authorities in April and will have to participate in the June auction to secure capacity.

Macquarie Capital declined to comment.