JERA to Invest in Offshore Wind Farm in Taiwan

JERA has entered into an agreement with Macquarie Capital to acquire an equity interest in an additional offshore wind power project in Taiwan.

Japanese power generator, JERA, which is a joint venture between Tokyo Electric Power Company Holdings and Chubu Electric Power Co, has announced that it has entered into an agreement with Macquarie Capital to acquire an equity interest in an additional offshore wind power project in Taiwan.

The latest transaction follows on from the company’s participation in the Formosa 1 offshore wind project announced in December 2018, and it represents an important deepening of the relationship between JERA and Macquarie.

The 376MW Formosa 2 project, located off the coast of Miaoli County, is preparing to commence construction from this October to install 47 wind turbines, with the expectation to reach commercial operation by the end of 2021. The project has secured the support of Taiwan Power Company under a 20-year Power Purchase Agreement (PPA) based on the FIT (Feed-in Tariff) scheme. JERA will be acquiring 49 percent equity interest of the project with support from the Development Bank of Japan Inc. and will play a key role as a major shareholder.

In association with its participation in the Formosa 1 project earlier this year, the company has newly established an operation base in Taiwan to expand business activity and dispatch engineers to contribute to the project and to gain knowledge and experience in construction and operation of the offshore wind power generation.

JERA will leverage its local base as well as experience, synergies and benefits from the successive projects to promote the efficient development, management and operation of its offshore wind power generation business.

The firm had also previously announced its Future Vision towards 2025 to be a “global leader in LNG and renewables sparking the transition to clean energy economy”. Through undertaking large-scale offshore wind power generation development in both the domestic and overseas markets, JERA plans to sustainably further enhance its enterprise value.