CIP inks Fengmiao 1 CPPA

PFI 782 - 04 Dec 2024 - 17 Dec 2024
2 min read
Asia

Copenhagen Infrastructure Partners has signed a corporate power purchase agreement with Sino American Silicon Products and its renewable energy subsidiary Sustainable Energy Solution on its 500MW Fengmiao 1 offshore wind scheme in Taiwan.

The deal is an important milestone in moving away from selling electricity to Taipower to a business model that is based on direct sales to corporations, CIP said.

It marks a first in Taiwan in which a parent company and its subsidiary jointly procure offshore wind energy – considered a significant step in renewable energy adoption. SES is the first retailer in Taiwan to secure a CPPA for offshore wind energy.

CIP has earlier signed an engineering, procurement, and construction (EPC) contract for an offshore substation for its 500MW Fengmiao project with a consortium consisting of Semco Maritime and PTSC Mechanical & Construction (PTSC M&C).

Semco Maritime is tasked with engineering, procuring, and installing high and medium-voltage, SCADA, and auxiliary systems with support from domestic and foreign suppliers such as TECO Electric and Fortune Electric, according to CIP.

PTSC M&C’s yard in Vungtau City, Vietnam, will handle the fabrication of all structures for this initiative. The contract is slated to compete major milestones by 2026, in time for Fengmiao project’s completion in 2027.

Fengmiao I is a benchmark project in Taiwan’s offshore wind development. The project stands out as the most progressed Round 3 project with engineering and procurement advanced, and strong interest shown from the domestic and international financing markets, according to CIP.

Fengmiao I is located 35km off the coast of Taichung City and will feature 33 wind turbines with a total capacity of 500MW. It is expected to be completed by late 2027.

The scheme was one of the six projects awarded capacity in late 2022 under the first phase of Taiwan’s third offshore wind auction. It bid a zero tariff.

CIP is currently in the debt market for a NT$100bn (US$3.13bn) project financing for Fengmiao 1. Tenor is 20 years. BNP Paribas and CTBC are financial advisers.