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Northland Power secures power purchase agreements for Taiwanese projects

By: Tom Russell 11/07/2022 Northland Power Inc.

General Windfarms

Northland Power Inc. (Northland) announced the signing of a Corporate Power Purchase Agreement (CPPA) for production from two of its Hai Long offshore wind projects in Taiwan secured under auction.

The agreement is with an investment grade counterparty (S&P: AA-) and covers 100 percent of the power generated from Hai Long 2B and Hai Long 3, which have a combined capacity of 744 MW. The agreement is for a 20-year period at a fixed-price, commencing once Hai Long reaches full commercial operations in late 2026.

Under the terms of the CPPA, the two projects will receive a fixed price for delivering power and Taiwan Renewable Energy Certificates (T-RECs) during the 20-year contract period. In 2018, the projects were allocated grid capacity for connection under Taiwan’s fixed auction program and awarded PPAs with Taiwan Power Company (Taipower). The contracted price under the CPPA is more favourable than the fixed auction rate originally awarded in 2018.

According to Northland, the improved rate enhances the economics of the project and is a key accomplishment as it progresses towards securing non-recourse project level debt financing and financial close for the project later this year. The PPAs with Taipower are not affected by the signing of the CPPA and provide a backstop to the CPPA.

Mike Crawley, President and Chief Executive Officer of Northland commented: “Today’s announcement is a substantial milestone for Northland and for our partners in the Hai Long project. This agreement marks Northland’s first signed corporate PPA and aligns with our commitment to supporting the global decarbonization efforts by governments and corporate entities through the development of renewable energy. In particular, the development of Hai Long will support Taiwan’s transition to renewable energy.”

The Hai Long project is a proposed project located 50-70 km from the shore. It spans three sites off Taiwan: Hai Long 2A (300 MW), Hai Long 2B (232 MW) and Hai Long 3 (512 MW). The project's construction is due to be completed by 2026. The three sites are being developed by Canadian independent power producer Northland Power International (NPI), Yushan Energy Pte Ltd and Mitsui. Siemens Gamesa has been named preferred supplier for the project. Each SG 14-222 DD offshore wind turbine will have a capacity of 14 MW and feature a rotor diameter of 222 metres using 108-metre-long Siemens Gamesa IntegralBlades.

Hai Long 2A entered a separate 20-year power PPA with Taipower in 2019 under a Feed-in-Tariff allocation.

For more information on wind farm developments, click here. Alternatively, click here for our interactive map of offshore wind farms, infrastructure and ports.

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Northland Power secures power purchase agreements for Taiwanese projects

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