Danish energy company Ørsted has named Cathay Life Insurance as the preferred bidder for the purchase of its 50% interest in the 583MW Greater Changhua 4 offshore wind farm.
The selection of Cathay Life and its affiliate took place through a competitive divestment process, leading to an exclusivity agreement with the Taiwanese insurer.
This exclusivity period will last until 17 January 2024. During this time, the companies will finalise the terms of the deal and carry out due diligence.
The deal will close once it is approved by Taiwan's regulatory agencies.
The wind farm is part of the Greater Changhua 2b and 4 wind farms, which will have a total capacity of 920MW.
Ørsted secured the projects in 2018, and the final investment decision on the project was taken in March 2023. To be located 35km offshore Changhua County, the wind farms will be powered by 14MW turbines.
Onshore construction is expected to begin in 2023, with offshore construction to be completed by the end of 2025.
The projects will be financed by the Ørsted Group along with debt sourced from the Taiwanese market.
In July 2020, Ørsted signed one of the largest corporate power purchase agreements (CPPAs) in the country with the Taiwan Semiconductor Manufacturing Company (TSMC). The fixed-price agreement will be valid for 20 years.
The price to be paid by TSMC is higher than the feed-in tariff originally secured by Ørsted in 2018. Thus, the project’s financial viability has been secured through the CPPA.
