Taiwan Okay’s Financial Restructuring of $3.02 Billion Yunlin Offshore Wind Farm

Yuneng Wind Power Co, which is responsible for the construction and operation of the 640 MW Yunlin offshore wind farm, has obtained the necessary licences from Taiwan’s Ministry of Economic Affairs to complete the financial restructuring, which was announced in August 2023.

The company achieved financial closure in 2019, but the project suffered from significant time and cost overruns during the early construction phase. The estimated investment for the project $3.02 billion. The project financing was secured from a consortium of 19 banks and three export credit agencies.

The shareholders include Germany’s Skyborn Renewables, owned by Yuneng Wind Power Co and Thailand’s Electricity Generating Public Company (EGCO) have 25% stake each, French energy giant TotalEnergies (23%) and the remaining 27% by a consortium of five Japanese companies – Sojitz Corporation, Chudenko, Eneos, Shikoku Eletric Power and Chugoku Electric Power.

The Yunlin Offshore Wind Farm Project, which is located in Taiwan Strait, about 8 to 17 km away from the west coast of Taiwan, has been funded by Skyborn Renewables and its investment partners Total Energies, EGCO Group.

The wind farm covers an area of about 82 sq km and equipped with 80 wind turbines. The generated electricity is located in Yunlin County. Two onshore substations in Taixi Township and Sihu Township feed into the power grid.

34 Turbines Installed

Of the 80 wind turbines expected to be installed, 34 have been installed so far, allowing the project to generate revenue from the power fed into Taiwan’s power grid. In addition, the construction team has completed the installation of 45 single-pile underwater foundations, as well as the laying of 26 array submarine cables and 12 output submarine cables.

The financing group of the Yunlin project has not changed since the initial funds were received, including more than 20 domestic and foreign specialised banks and export credit agencies. The main investors of the project have invested a huge amount of additional funds to ensure the completion of the project.

With the funds and regulatory permits in place, the Yunlin project will continue installation and construction operations in 2024 and achieve commercial operation. The project team and all contractors are working at full speed to achieve the scheduled goals. The revised completion plan is set to complete the installation of all 80 wind turbines in 2024.

The electricity produced by the Yunlin offshore wind farm is provided to Taiwan Electric Power Company under two 20-year power purchase agreements. Upon completion, the wind farm with an installation capacity of 640 MW will generate enough clean energy to supply the energy needs of more than 600,000 households. It has become one of the largest offshore wind farms in Taiwan.