Ørsted Shelves Taiwan Projects

Wednesday, January 2, 2019

Danish energy group Orsted will put new major projects in Taiwan on hold after it failed to sign a power purchase agreement (PPA) for two offshore wind farm projects, the company said on Wednesday.

Taiwan, which has made a big push to attract investments into renewable technology, last year awarded Orsted the right to install 900 megawatts (MW) of offshore wind capacity at its Changhua 1 and 2a projects, due to be completed in 2021.

But the Danish company said a deadline for signing a PPA with Taiwanese utility Taipower for the projects had slipped as Taiwan's Bureau of Energy had failed to issue an establishment permit.

"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," said Martin Neubert, head of Orsted's offshore division.

Taiwan had become a key battleground for the world's top offshore wind developers seeking a foothold in Asia.

Orsted acknowledged in November that offshore wind projects in Taiwan could face delays after voters in a local election decided against a government plan to abolish nuclear power.

The vote prompted Taiwan to scrap its target of having no nuclear power by 2025 and to review its energy policy, which since 2011 has been driven by the Fukushima nuclear accident.

Orsted in June last year won the right to build an additional 920 MW offshore wind capacity at the Greater Changhua sites by 2025. The company had yet to decide on that project, a spokesman said.

Orsted said it was "very concerned" about Taiwan's proposal for a production cap and lower feed-in tariffs.

"We will need to see significant changes to these proposals before we can progress any further towards a final investment decision on the projects," Neubert said.

Orsted, which owns 35 percent of Taiwan's first commercial offshore wind project Formosa 1, said a planned expansion of the project from 8 MW to 128 MW will proceed as planned this year.

Before the November vote, the island's offshore wind market was expected to expand to 5.5 GW by 2025, with government investments into onshore and offshore wind of $23 billion.



(Reporting by Jacob Gronholt-Pedersen; Editing by Jan Harvey and David Evans)

Categories: Energy Offshore Energy Renewable Energy Asia Renewables

Related Stories

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Japanese Oil and Gas Firm Enters Two Blocks off Malaysia

Op-Ed: Kazakhstan’s National O&G Firm Positioning Itself as Global Energy Player

Woodside to Shed Some Trinidad and Tobago Assets for $206M

CIP Reaches Financial Close for Offshore Wind Farm in Taiwan

Second Hai Long Substation Heads to Project Site Offshore Taiwan

Current News

One Shelf Drilling Rig Up for New Job in India, Other for Disposal

Four Jack-Up Drilling Rig Deals Set to Bring In $129M for Borr Drilling

PTTEP Hires Velesto’s Jack-Up Rig for Drilling Campaign off Malaysia

Yinson Production Secures $1.17B Refinancing for FPSO Maria Quitéria

Centrica and Thailand’s PTT Ink Long-Term LNG Supply Deal

Petrovietnam, Partners Sign PSC for Block Off Vietnam

Japan Protests China’s New Oil and Gas Construction Activities in East China Sea

CNOOC Signs Hydrocarbons Exploration and Production Deal with Kazakhstan

Thailand's PTT to Buy LNG from Glenfarne's Alaska LNG Project

Woodside and Jera Agree LNG Cargoes Supply for Japan’s Winter Period

Subscribe for AOG Digital E‑News

AOG Digital E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

https://accounts.newwavemedia.com