Copenhagen Infrastructure Partners (CIP) has reached financial close and the start of the construction of the 589MW Changfang and Xidao wind project off the coast of Changhua County in Taiwan.
The Changfang and Xidao wind farm will feature 62 MHI Vestas 9.5MW wind turbines scheduled to be commissioned in the first quarter of 2024.
The wind farm will be financed through a combination of equity and senior loans from a consortium of 25 international and Taiwan banks and financial institutions, as well as six export credit agencies.
The total project financing raised from the banks and financial institutions amounts to approximately USD 3 billion, CIP said.
The project received the approval of its local content plan in December 2019 by the Taiwanese government and is the offshore wind project with the highest localization percentage in the Asia Pacific region, according to CIP.
The Changfang and Xidao project will localize the jacket foundation, pin piles, the onshore substation, transport and installation contracts, and more than 15 wind turbine components.
“Since we entered the Taiwan offshore wind market in 2017 we have worked intensively with Taiwanese companies and the government to build up the local supply chain and we are therefore proud to deliver the project with the highest extent of localization in Taiwan to date,” CEO of Changfang Xidao, Jesper Krarup Holst said.
CIP acquired the Changfang and Xidao wind farm in 2017 and the project obtained grid allocation in 2018. In 2019, the project entered into a 20-year PPA with the state-owned Taiwan Power Company.
The Changfang and Xidao project is owned by CI II and CI III, CIP’s funds, and a minority stake is owned by two local life insurance companies, Taiwan Life Insurance, and TransGlobe Life Insurance. CIP will lead the project through its construction phase.
“This project, besides being a remarkable project in Taiwan where it marks the continuation of the offshore wind build out, is part of leading the way for the complete APAC region going into offshore wind,”Anders Eldrup, CIP APAC Chairman said.
MUFG acted as Financial Advisor and CTBC as the local Financial Advisor for the project debt financing. White & Case acted as legal advisor and Baker McKenzie as the local legal advisor. FIH Partners acted as Financial Advisor to CIP.
To support the development, the Changfang and Xidao project has entered into contracts with the following companies: New Power Partners, PeakWind, Lautec, Wood Thilsted Partners, Bech Bruun, C2Wind, and JUM BO Consulting Group.