Canada’s Northland Power has signed a 20-year Corporate Power Purchase Agreement (CPPA) with an unnamed company for electricity from its Hai Long offshore wind project in Taiwan.
The agreement covers power generated from phase 2B and 3 of Hai Long, which have a combined capacity of 744 MW.
The agreement will be effective once Hai Long enters commercial operation in late 2026. Under the CPPA, Hai Long will receive a fixed price for supplying electricity and Taiwan Renewable Energy Certificates (T-RECs) during the contract period.
Although the contracted price is not revealed, the Canadian company said it’s higher than the fixed price awarded in the 2018 auction.
Hai Long includes Hai Long 2A, 2B and 3 sites with a total capacity of 1,044 MW. In 2019, Hai Long 2A secured a separate 20-year power PPA with Taipower under a Feed-in-Tariff allocation and is scheduled to connect to the grid in 2024.
The Taipower PPA is not affected by the new CPPA and provide a backstop to it, said the company.
Northland owns 60% of Hai Long and the remaining 40% is controlled by Yushan Energy and Mitsui & Co.
The improved rate under the new CPPA is said to enhance the economics of the project and it viewed as a substantial milestone and a major accomplishment in securing non-recourse project level debt financing and financial close later this year.
Mike Crawley, president and chief executive officer of Northland, said “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.”