- Ørsted sells a 50% stake in the 583 MW Greater Changhua 4 Offshore Wind Farm to Cathay Life Insurance for DKK 11.6 billion.
- Ørsted retains 50% and will manage construction, operations, and long-term wind farm maintenance. The project is expected to be completed by 2025.
- The project benefits from a 20-year fixed-price PPA with TSMC, strengthening Taiwan’s position in the Asia-Pacific renewable energy sector.
Ørsted has finalised a deal to sell a 50% stake in the Greater Changhua 4 Offshore Wind Farm to Cathay Life Insurance. The agreement marks a strategic move in Ørsted’s push to develop energy projects in Taiwan. The wind farm, under construction, has a capacity of 583 MW.
Ørsted values the deal at DKK 11.6 billion. The company will retain the remaining 50% stake and manage the construction and operations. Greater Changhua 4 is part of the more considerable Greater Changhua development, which includes the Greater Changhua 2b and four other projects totalling 920 MW. Ørsted expects to complete these projects by the end of 2025.
Under the terms of the agreement, Ørsted will manage the engineering, procurement, and construction (EPC) contract and provide long-term operations and maintenance (O&M) services. The transaction will close by the end of 2024, with all necessary regulatory approvals already in place.
Ørsted has secured financing from six export credit agencies, including Credendo, Export Finance Australia (EFA), and UK Export Finance (UKEF). Taiwan’s National Credit Guarantee Administration (NCGA) joins the deal, marking its first participation in offshore wind financing.
Rasmus Errboe, Ørsted’s Deputy CEO and Chief Commercial Officer, called the partnership a key milestone in the company’s divestment program. He said the deal would help Ørsted achieve its financial goals in the medium and long term.
Andrew Liu, President of Cathay Life Insurance, explained that the investment aligns with the company’s long-term return objectives. He also emphasised that the project would support Taiwan’s economic growth.
The Greater Changhua 4 project benefits from a 20-year fixed-price power purchase agreement (PPA) with Taiwan Semiconductor Manufacturing Company (TSMC). This PPA guarantees a stable revenue stream for the wind farm and the broader Greater Changhua development.
Located near the operational Greater Changhua 1 and 2a projects, Greater Changhua 4 will increase the total installed capacity of the Greater Changhua cluster to 1.82 GW. The project strengthens Taiwan’s position as a leading hub for renewable energy in the Asia-Pacific region.
With the 50% stake sale, Ørsted continues its efforts to reduce direct investments in individual projects, focusing on expanding its portfolio through strategic partnerships. The company plans to divest around DKK 30 billion in offshore wind investments by 2025.
The collaboration with Cathay Life Insurance highlights growing interest from institutional investors in Taiwan’s renewable energy projects. The sale also advances the development of Taiwan’s offshore wind sector, a key part of the country’s green energy transition.
In addition to the Greater Changhua 4 project, Ørsted is involved in several other offshore wind developments in Taiwan. These include the operational 900 MW Greater Changhua 1 and 2a projects. Ørsted’s ongoing commitment to Taiwan supports its broader strategy to lead the global transition to renewable energy.
With the completion of the Greater Changhua wind farms, Ørsted will significantly contribute to Taiwan’s renewable energy capacity. The projects will provide a reliable source of clean energy to meet the country’s growing demand for sustainable power.