EKF and Siemens Gamesa generating green energy in Taiwan:
Large new offshore Taiwanese wind power plant is "made in Denmark"

EKF Denmark's Export Credit Agency, facilitated by Denmark's Green Future Fund, is helping finance a large new Taiwanese offshore wind farm, Greater Changhua 1, with Siemens Gamesa supplying the turbines. Denmark-based multinational renewable energy company Ørsted A/S will be responsible for development, installation and servicing of the 605 MW-capacity wind power plant. For comparison, in 2019, Denmark had 1,700 MW installed offshore wind capacity.

Over the next two years, a large new offshore wind power plant will be installed off the Taiwanese coast, made possible by Danish expertise in both wind energy technology and wind-venture financing.

Ørsted is responsible for developing Greater Changhua 1, while Siemens Gamesa will be supplying 75 of its SG 8.0-167 DD offshore wind turbines, each with a capacity of 8 MW and rotor diameter of 167 meters. The owners consist of Ørsted, Canadian pension fund CDPQ and local Taiwanese investors, while EKF and Denmark's Green Future Fund will be providing DKK 3.4bn of the financing.

With DKK 14bn, EKF has been allocated more than half the funds held in Denmark's Green Future Fund, and the fund will cover part of EKF's risk in the project. This transaction retains jobs in Denmark and supports the clean energy transition.

"Danish companies are world champions in offshore wind. Their North Sea know-how can be applied anywhere in the world, which gives Danish solutions a distinct advantage over the competition. Equally, at EKF we have extensive experience of financing this type of wind venture and given that we also have an allocation from Denmark's Green Future Fund, we're in a position to offer an unbeatable all-inclusive package," says Kirstine Damkjær, EKF’s CEO.

At Siemens Gamesa the partnerships with both EKF and Ørsted are highly valued, as they make the process smoother and less complex.

"Our long-term, sound partnerships with EKF and Ørsted have been major drivers in enabling Siemens Gamesa to become the world’s leader in the offshore wind industry. As markets grow, having solid financial backing enables us to focus on safety, innovation, and lowering the cost of energy from offshore wind. Denmark's Green Future Fund adds substantial capacity to EKF's financing capabilities overall and on an individual transaction basis. It therefore reduces complexity in the financing process while also meeting the larger capital requirements demanded by offshore projects as they grow in size. This is beneficial for our customers and consequently to Siemens Gamesa," says Pierre Bauer, Interim CEO of the Siemens Gamesa Offshore Business Unit.

Ambitious green target

According to EKF’s calculations Greater Changhua 1 is expected to reduce CO2 emissions by 38 million tonnes during the power plant’s life span.

More than 90 percent of Taiwan's energy requirement is currently met by imported coal, oil and natural gas, but the country has an ambitious target for going green and reducing its reliance on imported fuel. The plan is for 20 percent of Taiwanese electricity to be generated by renewable energy sources by 2025. For comparison, just over 68 percent of Denmark's electricity was sourced from renewables in 2019. 

To reach the target, Taiwan is consequently investing heavily in wind energy, which makes Danish offshore wind know-how invaluable. The plan is to install an array of offshore wind power plants totalling 5.5 GW of power generation capacity by 2025, adding another 10 GW by 2035.

The current project, contributing 605 MW to the target capacity, will be located in the Taiwan Strait, about 37 km off the Taiwanese west coast.

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