Japan-based energy company JERA is taking a stake in an offshore wind project being developed off the coast of Taiwan.
JERA will acquire a 32.5% share of Formosa 1, having entered into an agreement with Macquarie Capital and Swancor.
The transaction remains subject to regulatory approvals.
The 128MW Formosa 1 project, off the north-west coast of Taiwan, represents the island’s first utility-scale offshore wind farm.
The first phase of 8MW has been in operation for over 18 months. The additional 120MW is under construction with the aim of starting operations by the end of 2019.
While offshore wind is a mature industry in Europe, JERA recognises the sector is at an early stage in Asia, including Japan, with room for growth.
JERA, a joint venture between Tokyo Electric Power Company and Chubu Electric Power Company, will also bring to the project its business scale and expertise in conventional power project development.
The company will establish an operations base in Taiwan to expand business activity.
The project has secured the support of Taiwan Power Company under a 20-year power purchase agreement based on the feed-in tariff scheme.
Through its participation in the Formosa 1 project, JERA will gain knowledge and experience in construction and operation of the offshore wind power generation and leverage this to move forward with projects in Japan and abroad.
