Ørsted signs 20-year PPA with TSMC
By ECCT staff writers
Ørsted and Taiwan Semiconductor Manufacturing Company (TSMC) have signed a corporate power purchase agreement (CPPA). According to a press release on Ørsted’s website, TSMC will offtake the full production from Ørsted’s 920MW Greater Changhua 2b & 4 offshore wind farm, making it the largest-ever contract of its kind within renewable energy.
According to the press release, the 20-year fixed-price contract period starts once Greater Changhua 2b & 4 reaches commercial operations in 2025/2026, subject to grid availability and Ørsted’s final investment decision.
TSMC, the world’s largest semiconductor foundry, has committed to “green manufacturing” and environmental sustainability. JK Lin, Senior Vice President of Information Technology and Materials Management & Risk Management at TSMC was quoted in the press release as saying “TSMC is happy for this opportunity to collaborate with Ørsted and not only expand the adoption of renewable energy, but also to work towards Taiwan’s energy transition to build world-class industrial environment. As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility to environmental protection.”
Under the agreement with TSMC, the Greater Changhua 2b & 4 offshore wind farm will receive a price for power including Taiwan Renewable Energy Certificates (TRECs) during the 20-year contract period that is higher than the feed-in-tariff which was originally secured via the outcome of Taiwan’s first offshore wind auction in June 2018. This improves the project’s financial viability and helps Ørsted mature Greater Changhua 2b & 4 towards a final investment decision.
Martin Neubert, Executive Vice President and CEO of Ørsted Offshore, was quoted as saying: “We commend TSMC for their leadership in renewable energy sourcing and for taking tangible action to deliver on their ambitious greenhouse gas reduction targets. By sourcing renewable energy at an unprecedented scale, TSMC demonstrates strong support for the development of renewable energy. Signing the largest-ever corporate PPA with the world’s leading semiconductor company shows that Ørsted is a trusted renewable energy partner for corporates and governments.”
Matthias Bausenwein, President of Ørsted Asia-Pacific, said: “The agreement between Ørsted and TSMC signed today underlines Ørsted’s pioneering role in the development of renewable energy in the Asia Pacific. In Taiwan, we are already constructing the Greater Changhua 1 & 2a offshore wind farm. Combined with our Greater Changhua 2b & 4 project, which is now one step closer to a final investment decision, we are making offshore wind a cornerstone in Taiwan's transition from fossil-based to renewable energy.”