Ørsted & TSMC Sign World’s Largest Corporate Renewable PPA

Ørsted and TSMC have signed the largest ever renewable corporate PPA, under which TSMC will offtake the full production from Ørsted’s 920 MW Greater Changhua 2b & 4 offshore wind farm.

Offshore wind major Ørsted and Taiwan-based TSMC have announced that they have signed a corporate power purchase agreement (PPA), under which TSMC will offtake the full production from Ørsted’s 920 MW Greater Changhua 2b & 4 offshore wind farm, making it the largest-ever contract of its kind within renewable energy.

The 20-year fixed-price contract period starts once Greater Changhua 2b & 4 reach commercial operations in 2025/2026, subject to grid availability and Ørsted’s final investment decision.

TSMC, the world’s largest semiconductor foundry, is also a world-leader in green manufacturing. With this CPPA, TSMC once again demonstrates its long-term commitment to environmental sustainability. J.K. Lin, Senior Vice President of Information Technology and Materials Management & Risk Management at TSMC, said “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 T-RECs (Taiwan renewable energy certificate) 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, said “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.”

The Greater Changhua 2b & 4 projects will be the firms’ third offshore wind farm in Taiwan, subject to final investment decision which the firm expects to take in 2023. The wind farm will have a capacity of 920 MW and will be located in the Taiwan Strait approximately 50 km off the coast of Changhua County. The projects will be located adjacent to the 900 MW Greater Changhua 1 & 2a offshore wind farm which the firm is currently constructing.