Four developers have failed to sign PPAs by Wednesday 2 January to lock in a higher feed-in-tariff for their combined 2.1GW of offshore wind projects in Taiwan.
The Bureau of Energy of Taiwan spokesperson told Inframation it had not yet received the go-ahead from the government of Changhua county to grant the development permit for six projects Orsted, NPI, CIP and China Steel (CSC) are planning off the coast of the western county.
That means the four developers are not expected to sign the PPAs with state utility Taipower to lock in the 2018 offshore wind FiT of NTD 5.8/kwh — much higher than the draft FiT of NTD 5.1/kwh proposed by the government in November for 2019, he noted.
“We are still reviewing the project proposals and unable to grant any approval to the projects by the end of today,”a spokesperson from the Changhua government confirmed with this news service.
That is despite a joint statement by the four players on Monday calling for a greenlight from the Changhua government by 2 January. They warned that the proposed 2019 FiT of NTD 5.1/kwh will make the offshore wind projects impossible to invest for both domestic and foreign developers and could in the worse case scenario result in cancellation of projects.
CIP, NPI and CSC promised in the statement to make the Port of Changhua their O&M base for a term of 20 years and ask their wind turbine supplier MHI Vestas to build a large O&M centre in Changhua. Orsted will also consider the same localisation effort for the Greater Changhua Northwest project to be connected to the grid in 2025.
On 28 December, the Changhua government asked for a clarification from the developers over a few more details of their wind project proposals.
The six projects to be affected are:
– Greater Changhua Southwest and Greater Changhua Southeast (900MW) Wind Farms, with COD both in 2021
– Changfang (552MW), with COD for Phase I in 2021 and that for Phase II in 2023;
– Xidao (48MW), with COD in 2024
– Chungneng (300MW), with COD in 2024;
– Hailong II (300MW Phase I), with COD in 2024
All the wind projects shall obtain the development permit from BoE in order to secure a PPA with Taipower.
So far, WPD’s 708MW Yunlin wind project and the 378MW Formosa II wind farm by Swancor and Macquarie are the only two projects awarded in Taiwan’s April wind selection that have signed PPAs with Taipower by end-2018 and therefore secured the NTD 5.8/kwh FiT.
Both firms opted for the 20-year PPA with FiT of NTD 7.1/kwh for the first ten years and NTD 3.5/kwh for the rest 10 years instead of a 20-year fixed rate of NTD 5.8/kwh. WPD opted for the tiered FiT because the banks, especially local lenders, would like to receive more loan repayment as early as possible to lower risks, a company spokesperson said.