MHI Vestas Signs Hai Long MoU in Taiwan
MHI Vestas has signed a Memorandum of Understanding (MoU) with Northland Power and Yushan Energy to provide wind turbines for the 300MW Hai Long offshore wind farm in Taiwan.
According to Yushan Energy, the memorandum sets the foundation for pursuing a preferred supplier agreement with MHI Vestas and for negotiating on an exclusive basis for the term of the MoU.
Northland Power and Yushan Energy secured grid capacity in April for the development of the 300MW project.
Under the agreement, MHI Vestas also holds a right of first refusal for the procurement of 744MW of offshore wind turbines for the 232MW Hai Long 2 and 512MW Hai Long 3 offshore wind projects, which Taiwan’s Ministry of Economic Affairs selected in June.
The MoU is subject to certain conditions, such as that the developers of the 300MW project sign a power purchase agreement (PPA) this year or in 2019, and that the Feed-in Tariff (FiT) remains stable relative to the 2018 price.
The offshore wind turbines will be delivered by MHI Vestas from Taiwan according to local content requirements introduced by the Taiwan Industrial Development Bureau. The parties said they will explore the potential to procure the turbines for the remaining 744MW from Taiwan as well, as much as reasonably possible.
“This MOU with MHI Vestas represents an important next step in the development of the Hai Long projects, and for Taiwan’s offshore wind market,” said Mike Crawley, Chief Executive Officer at Northland Power.
“MHI Vestas is demonstrating their commitment to investing in Taiwan’s local supply chain, and we look forward to helping them strengthen these investments. Northland and MHI Vestas have a proven track record from our collaboration in Europe. We are pleased to expand this relationship into Taiwan, and to support the achievement of Taiwan’s renewable energy objectives through world class expertise and technology.”