Wind Energy – Taiwan
Denmark offshore wind developer Copenhagen Infrastructure Partners, along with a consortium of seven export credit banks comprising over 60 individuals, is set to arrive in Taiwan on the 26th of June.
They will be joined by domestic and international host banks and syndicate banks, who will travel offshore to conduct an audit of the wind farm project located off the coast of Changhua.
The purpose of their visit is to assess the progress of CIP’s Taiwan projects in Changfang and Xidao offshore wind farms, taking into account the impact of the pandemic, as well as inspect the production status of the supply chain vendors.
This audit operation by the consortium of banks is receiving considerable attention, as it coincides with the sensitive period leading up to the signing of the administrative contract for Phase 3-1 of the zonal development.
Some European developers adopt Project Finance to finance wind farm development through foreign export credit banks. The costs proposed by these developers need to be reviewed and approved by the foreign consortium of banks. Disbursements are made based on the progress of the project, rather than in a lump sum.
Monthly reports are submitted by the developers to the consortium of banks, ensuring financial transparency. Domestic banks have gradually been learning and implementing this professional approach to project financing. CIP’s Changfang and Xidao wind farms are developed using this project finance method.
According to the administrative contract, CIP’s Changfang and Xidao wind farms are scheduled to be completed and connected to the grid by the end of 2024.
CIP has committed to the consortium of banks that all 62 turbines in the Changfang and Xidao wind farms will be fully installed and connected by the end of this year. However, currently less than half of the turbines have been installed, indicating a need to accelerate the construction pace. The syndicate of banks involved with the Changfang and Xidao projects has expressed concerns over the delayed progress of the maintenance and operation harbour in Changhua and has requested an on-site inspection.