TSMC Signs Power Purchase Agreement with Ørsted in Taiwan
12 Jul 2020 by Power-Technology
Taiwan Semiconductor Manufacturing Company (TSMC) has signed a corporate power purchase agreement (PPA) with Danish renewable energy company Ørsted.
Under the PPA, TSMC will purchase all power generated by the 920MW Greater Changhua 2b & 4 offshore wind farm, owned by Ørsted.
TSMC senior vice-president JK Lin said: “TSMC is happy for this opportunity to collaborate with Ørsted and not only expand the adoption of renewable energy, but also to work towards Taiwan’s energy transition to build world-class industrial environment.
“As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility for environmental protection.”
The 20-year fixed-price PPA will be effective once Greater Changhua 2b & 4 begins commercial operations in 2025/2026. It will also be subject to grid availability as well as Ørsted’s final investment decision.
Under the agreement, Greater Changhua 2b & 4 offshore wind farm will receive a higher price for power than its originally agreed feed-in tariff. This price will include Taiwan renewable energy certificate during the 20-year contract period.
Ørsted Offshore executive vice-president and CEO Martin Neubert said: “We commend TSMC for their leadership in renewable energy sourcing and for taking tangible action to deliver on their ambitious greenhouse gas reduction targets.