Northland Signs Taiwan Offshore Power Deal
The Canadian developer Northland Power has signed a power purchase agreement (PPA) with state utility Taiwan Power Company (Taipower) for the 300MW Hai Long 2a wind farm off Taiwan.
Northland and its partner Yushan Energy own 60% and 40% of Hai Long 2A, respectively. Hai Long 2A is the first of the three Hai Long projects (1,044 MW total capacity) to receive its PPA.
Hai Long 2A has entered into a 20-year power PPA with Taipower at the 2019 FIT rate of NTD 6.2795/kWh and NTD 4.1422/kWh for the first and second 10-year periods, respectively. In 2015, the Taiwan government implemented the FIT program to provide long-term contracts designed to inaugurate its offshore wind sector. Project economics and financing details will be finalized as development progresses.
Mike Crawley, President and Chief Executive Officer of Northland Power said: "Today’s announcement is excellent news for Northland and demonstrates Taiwan’s commitment to becoming a leader in Asia’s bourgeoning offshore wind sector. Offshore wind has the potential to transform Taiwan’s economy and environment, creating jobs while helping to foster energy security. This project also aligns with Northland’s commitment to deliver long-term value to shareholders, while supporting the global transition to clean and green energy sources."
Northland and Yushan Energy are also engaged in developing the Hai Long 2B and Hai Long 3 offshore wind projects in Taiwan. In June 2018, these projects were allocated grid capacity for connection in 2025 under Taiwan’s auction program and are expected to execute their respective PPAs with Taipower in 2019.