Danish offshore wind company Ørsted has announced the delay of an establishment permit and 2018 power purchase agreement (PPA) on its 900MW Taiwanese offshore wind farm projects.

In April, Ørsted secured a contract from Taiwan’s Ministry of Economic Affairs to connect the 605MW Changhua 1 and the 295MW Changhua 2 to the grid in 2021.

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Ørsted Offshore CEO Martin Neubert said: “We’re disappointed with the process and the delay of the establishment permit and PPA. We will now pause and revisit all our project activities, the timeline of the projects, and our supply chain commitments and contracts as we had assumed signing of the PPA in 2018.

“We’re very concerned about the suggested feed-in-tariff level for 2019, as well as the newly proposed cap on annual full-load hours. We will need to see significant changes to these proposals before we can progress any further towards a final investment decision on the projects.”

"We’re very concerned about the suggested feed-in-tariff level for 2019, as well as the newly proposed cap on annual full-load hours."

In June, the Danish company secured the right to build an additional 920MW Taiwanese offshore wind capacity from its Greater Changhua sites, which were to be built in 2025, subject to its final investment decision.

In November 2018, the Taiwanese government proposed a 2019 feed-in-tariff of TWD5,106 (€145)  per MWh and suggested a production cap of 3,600 annual full-load hours.

Neubert further added: “The proposed retrospective changes would jeopardise the creation of a local offshore wind supply chain, harm the planned transition to renewable energy and cause significant uncertainty among international investors looking to Taiwan.

“Only with a stable and predictable policy framework, Taiwan has the potential for developing large-scale clean power production while creating thousands of local jobs and becoming a hub for offshore wind in Asia-Pacific.”