CDPQ, Cathay PE and Ørsted will jointly own the 605MW Greater Changhua 1 Offshore Wind Farm expected to be operational by 2022
Danish power company, Ørsted recently announced that it had sold half of its shares in the Greater Changhua 1 Offshore Wind Farm to Caisse de dépôt et placement du Québec (CDPQ) and Taiwanese private equity fund Cathay PE. CDPQ will hold a majority of those shares. The 50-50 partnership marks CDPQ’s first foray into the offshore wind sector in Asia Pacific, and will add to its renewable assets in the Americas, Europe and India. CDPQ executive vice-president and infrastructure head Emmanuel Jaclot said: “As an investor with vast experience in renewable energy, we seek this kind of greenfield opportunity to contribute to the transition towards a low‑carbon economy. Working alongside our long-term partner, Ørsted, and experienced local investor, Cathay PE, we are proud to support the Greater Changhua 1 Offshore Wind Farm project, which will supply clean power to over 6,50,000 Taiwanese families.”
Ørsted will continue to hold 50% stake in the Greater Changhua 1 Offshore Wind Farm. In addition to constructing the farm, it will also extend long-term operations and maintenance services via its O&M base at the Port of Taichung. In addition to their 50% stake, CDPQ and Cathay PE will also be funding half of the payments under the engineering, procurement and construction contract (EPC). The sale’s value, pegged at approximately TWD75bn (€2.18bn) will be paid by both firms over the next two years. The three companies claim that this is a first-of-its-kind partnership in the Asia-Pacific offshore wind sector.
Greater Changhua 1 is one of two offshore wind farms that are being built by Ørsted on the coast of Taiwan. Together, Greater Changhua 1 and 2a will generate 900MW energy when they become operational in 2022, expected to power nearly a million Taiwanese homes. In the recent past, Ørsted has indicated that they plan to expand operations in Asia. The firm has recently announced a spate of offshore wind farm projects off the South Korean Coast with a capacity of up to 1.6GW.