Total has signed an agreement with wpd to acquire a 23% interest in Yunlin Holding GmbH, the owner of the Yunlin offshore wind farm located off the coast of Taiwan, about 200 kilometers southwest of Taipei.
The project, currently under construction, has a production capacity of 640 MW and benefits from a 20-year guaranteed-price power purchase agreement (PPA) with state-owned company Taipower. Under the terms of the PPA, the project will cost $250/MWh for the first 10 years and $125/MWh for the following 10 years. For the 23% interest, Total will pay wpd a consideration based on its share of past costs.
Located around 10 kilometers offshore at water depths ranging from 7 to 35 m, the wind farm will comprise 80 wind turbines with a unit capacity of 8 MW. Construction is scheduled to be completed in 2022. Once generating electricity, the project will produce 2.4 TWh per year.
Identified by Taiwan’s authorities as a key area in the development of renewable energies, offshore wind power will be a significant contributor to generating 20% of its electricity from renewables by 2025 while fostering the emergence of a local wind power industry. Taiwan is one of the priority regions selected by Total for its development in offshore wind power in Asia.
“This agreement provides Total with an opportunity to gain a foothold in one of Asia’s main offshore wind markets and strengthens the group’s position in this fast-growing segment,” says Stéphane Michel, president of gas, renewables and power at Total. “Taiwan has been a pioneer in developing offshore wind power in Asia, and we are proud to contribute to the transformation of its energy mix.”
The acquisition, which is subject to government approval, will broaden the group’s 5.5 GW portfolio of offshore wind projects under development and construction. Procurement of the main components has been finalized and marine works are underway. The project reached a major milestone with the installation of the first wind turbine on April 23.
The project is currently 48%-owned by wpd, 25% by Electricity Generating Public Co. Ltd. and 27% by a consortium of Japanese investors led by Sojitz.