Offshore staff
TORONTO — Northland Power Inc. has announced the signing of a corporate power purchase agreement (CPPA) for production from its Hai Long offshore wind project in Taiwan secured under auction.
The agreement is with an investment grade counterparty and covers 100% of the power generated from Hai Long 2B and 3, which have a combined capacity of 744 MW. The agreement is for a 20-year period at a fixed-price, commencing once Hai Long reaches full commercial operations in late 2026.
Hai Long consists of three offshore wind sites being developed as a single project with a combined gross capacity of 1,044 MW. In addition to Hai Long 2B and 3, the project includes Hai Long 2A (300 MW). Hai Long 2A entered a separate 20-year PPA with Taipower in 2019 under a feed-in-tariff allocation. Northland has a 60% interest in Hai Long.
Under the terms of the CPPA, Hai Long 2B and 3 will receive a fixed price for delivering power and Taiwan Renewable Energy Certificates (T-RECs) during the 20-year contract period.
In 2018, the projects were allocated grid capacity for connection under Taiwan’s fixed auction program and awarded PPAs with Taiwan Power Co. (Taipower). The contracted price under the CPPA is more favorable than the fixed auction rate originally awarded in 2018. The improved rate enhances the economics of the project and is a key accomplishment as Northland progresses Hai Long toward securing non-recourse project level debt financing and financial close later this year. The PPAs with Taipower are not affected by the signing of the CPPA and provide a backstop to the CPPA.
07.11.2022
