Sojitz-led Japan consortium to invest in Taiwan’s largest wind power project
TOKYO, NNA – Trading house Sojitz Corp. and four other Japanese companies will together acquire a 27 percent stake in Taiwan’s largest offshore wind power project from German wind power producer wpd AG.
The German firm will operate the Yunlin Offshore Wind Farm project off the western coast of Taiwan through its subsidiary Yunneng Wind Power Co., which won government approval last year to sell electric power.
Construction of the 640,000-kilowatt wind farm starts in March 2020 for operation in December 2021. Electricity will be supplied to Taiwan Power Co. for 20 years under the feed-in-tariff system, which guarantees prices for renewable energy producers.
Taiwan is trying to shift from nuclear power generation to renewable energy sources. It plans to generate offshore wind power capacity of 5.5 million kilowatts by 2025.
In April 2018, Taiwan's Ministry of Economic Affairs allocated sites for offshore wind farms with a combined energy output capacity of 3.8 million kilowatts.
Yunneng Wind Power is wholly owned by wpd’s investment arm in Germany, Yunlin Holdings GmbH.
Sojitz will own 9.1 percent of Yunlin Holdings. The other Japanese firms are JXTG Nippon Oil & Energy Corp. (6.75 percent), Chugoku Electric Power Co. and its electrical engineering arm Chudenko Corp. (6.75 percent), and Shikoku Electric Power Co. (4.4 percent).