Denmarks's Orsted and Taiwan-based TSMC signed the world’s largest renewables corporate power purchase agreement, Orsted announced on Wednesday.
The company said that TSMC will offtake the full production from Orsted’s 920-megawatt Greater Changhua offshore wind farm, making it the largest-ever contract of its kind in renewable energy.
The 20-year fixed-price contract period starts once Greater Changhua reaches commercial operations in 2025/2026, subject to grid availability and Orsted’s final investment decision.
According to Orsted, TSMC, the world’s largest semiconductor foundry, is also a world-leader in green manufacturing.
"TSMC is happy for this opportunity to collaborate with Orsted and not only expand the adoption of renewable energy, but also to work towards Taiwan’s energy transition to build a world-class industrial environment. As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility to environmental protection," said J.K. Lin, senior vice president of Information Technology and Materials Management & Risk Management at TSMC.
Greater Changhua will be Orsted’s third offshore wind farm in Taiwan, subject to a final investment decision, which Orsted expects to take in 2023.
The wind farm will have a capacity of 920 megawatts and will be located in the Taiwan Strait approx. 50 kilometers off the coast of Changhua County.
Taipower, Taiwan’s transmission system operator, will build the new transmission grid to accommodate Taiwan’s buildout of offshore wind.
Under the current grid construction timeline, Taipower is expected to provide Greater Changhua with grid access in late 2025. Orsted expects to generate the first power from Greater Changhua shortly afterward and to fully commission the wind farm in 2026.
By Murat Temizer