Danish-based Copenhagen Infrastructure Partners (CIP) has reached financial closure on Taiwan’s $3.1 billion Fengmiao I offshore wind project. This will be the third Taiwanese wind energy project enabled by the world’s largest renewable energy projects financier. The first and second of these projects are the Changfang & Xidao and Zhongneng (CFXD).
Fengmiao I offshore wind project factsheet
Location: Taichung, Taiwan
Cost: $3.1 billion
Developer: Copenhagen Infrastructure Partners (CIP)
Capacity: 495 MW
Turbine supplier: Vestas
Construction completion date: 2027
Financial advisors: BNP Paribas, CTBC Bank
Legal advisors on financing: White & Case, Baker McKenzie
– on supply contracts: Accura
– to financier banks and ECAs: Orrick, Lee & Li
The project’s finances and outlook
The Fengmiao I offshore wind project is the first of Taiwan’s third round of projects auction to reach financial closure and start construction. After 2 years of planning, the 495 MW wind project has attracted prominent construction firms in its development.
Of early disclosure in the list is Vestas, who will deliver 33 units of their 15 MW turbines. Also, with fast-tracking of the whole development process, construction of the Fengmiao I offshore wind project is due the end of 2027.
CIP’s financial closure for the Fengmiao I features in its Copenhagen Infrastructure V K/S investment fund, one that also helped the Danish investment firm reach its acclaimed “world’s largest renewable energy projects financier” status.
The $3.1 billion is a money pool cast by 27 banks – both international and Taiwanese. Also in this pool is debt financing, where four Export Credit Agencies (ECAs) and Taiwan’s National Credit Guarantee Administration appear as guarantors.
Power Purchase Agreements (PPAs) for Fengmiao I’s 495 MW offshore wind project have also been completed. The distinct entirety of the 6 firms in the PPAs is still blurred.
Termed as a “major milestone for CIP”, and the topping of the “culmination of years of hard work and dedication” from project stakeholders, the Fengmiao I offshore wind project sets a new benchmark for Taiwan’s green energy transition. Also in the long-term outlook is that the energy asset will profit both large and small-scale energy users in Taiwan.
