Canadian independent power producer Northland Power has signed a 10-year power purchase agreements (PPA) with the Taiwanese state-run power utility Taipower for the 300 MW Hai Long 2A offshore wind park project. The company opted for a tiered tariff of TWD6,279/MWh (US$204/MWh) for the first 10 years and a TWD4,142/MWh (US$134/MWh) for the remaining 10 years.
Hai Long 2A is the first of three projects to be built in the Hai Long zone, where about 1 GW are expected to be built. Northland Power estimates that the PPAs for the two other projects will be finalised later in 2019. Hai Long is 60% owned by Northland Power, while its local partner Yushan Energy holds the remaining 40% stake.
Taiwan recently introduced a new feed-in-tariff (FiT) set at TWD5,516/MWh (about US$1.8c/kWh) for 20-year offshore wind power purchase agreements (PPAs) that will be signed in 2019 along with a tiered production cap: developers will receive 100% of FiT for production up to 4,200 annual full-load hours (i.e. 48% load factor), 75% of FiT for production from 4,200 to 4,500 annual full-load hours (48%-51% load factor) and 50% of FiT for production above 4,500 annual full-load hours (51%-plus load factor). Developers can also opt for the two-tier tariff (TWD6,279/MWh for the first 10 years and TWD4,142/MWh for the remaining 10 years), that Northland Power chose, as well as Copenhagen Infrastructure Partners (CIP) and China Steel Corp (CSC) for three offshore wind projects (900 MW).