CIP debuts in Asia with 1.5GW triple wind deal

The Danish fund manager has backed projects with an investment value said to total $6bn.

Copenhagen Infrastructure Partners has acquired three Taiwanese offshore wind projects through two of its vehicles, Copenhagen Infrastructure II and III. 

The three projects, which have a combined capacity of 1.5GW, are being developed by Fuhai Wind Farm Corporation, the project company and a unit of energy consultancy Taiwan Generations Corporation (TGC). 

The investment value and details of the projects were not disclosed, but local reports suggest the projects will cost a total 180 billion Taiwan dollars ($5.97 billion; €5.46 billion). CIP declined to comment. 

Further development of the sites will be undertaken by CIP, in collaboration with TGC. The three projects are in the process of applying for environmental permits and are still subject to a final investment decision, CIP said.
As part of the transaction, the firm has entered into a memorandum of understanding with local company CSBC Corporation Taiwan regarding supply and installation services. 

The projects are all located off the Changhua coast in the Taiwan Strait. The exploration area off the coast has a potential of up to 4GW of total wind capacity, which would require a total investment of up to 1 trillion Taiwan dollars, according to the Changhua county government.

Taiwan aims to build 3GW worth of offshore wind farms by 2025, while phasing out its nuclear power generation by the same deadline.   

The island’s offshore wind sector has attracted interest from a handful of large international investors, including Macquarie Capital and Dong Energy. The pair agreed early this year to acquire a majority stake in an offshore wind scheme in Taiwan – the Formosa I – from local developer Swancor Renewable. 

The first two turbines were installed in October last year, while the second phase of the project should see a further 120MW of capacity built during 2019. Last month, the project received its first license for commercial operations from the island’s Ministry of Economic Affairs. 

Dong Energy is currently developing four other offshore wind sites in the Changhua region, expected to deliver a total capacity of at least 2GW. Canada’s Northland Power and Singapore-based Yushan Energy have also committed to developing offshore wind on the island under MoUs signed last December.