Electricity Generating Public Company Limited or EGCO Group has an established track record of expanding its power generation portfolio in the Asia Pacific region. The Company today announced its first successful investment in the 640MW Yunlin offshore wind farm project which is under construction in Taiwan, through the acquisition of a 25% ownership interest in Yunlin Holding GmbH.
Mr. Jakgrich Pibulpairoj, President of EGCO Group stated that “Greenwing Energy B.V., a wholly owned subsidiary of EGCO, entered into a share purchase agreement to acquire a 25% ownership interest in Yunlin Holding GmbH (“Yunlin”) owned by Taiwan Offshore Holding GmbH (the “Transaction”) on December 19, 2019. This investment was approved by the Board of Directors of EGCO in Meeting No.12/2019 on November 22, 2019. The Transaction is expected to be closed in the 1st quarter of 2020, subject to completing all closing conditions including consent by Taiwanese authorities.”
Yunlin is a holding company which owns 100% of Yunneng Wind Power Co., Ltd. of Taiwan (the “Project Company”). The Project Company is constructing a 640MW offshore wind farm which will be located in the Taiwan Strait approximately 8 km west of the coast of Yunlin County in Taiwan and covers an overall area of approximately 90 square kilometers (the “Project”).
The Project Company entered into power purchase agreements with Taiwan Power Company (“Taipower”) on December 11, 2018 for each of its two phases. Through these PPAs, the Project Company has secured a fixed 20-year feed-in-tariff for the sale of electricity from the Project. Commissioning of the Project will occur in phases, with phase 1 comprising 352MW scheduled for completion in the 4th quarter of 2020, and phase 2 comprising 288MW scheduled for completion in the 3rd quarter of 2021.
EGCO Group’s President added that “Taiwan possesses high investment potential and is an avid supporter of renewable energy development as a means to meet its lofty renewable energy targets. The focus of this program emphasizes onshore and offshore wind as well as solar power with a target to achieve 20% of its generated electricity from renewables by 2025.”
“This investment represents a unique and important opportunity for EGCO Group to expand its footprint in a new and growing renewable market in the Asia Pacific region. The Project is expected to support the Company’s growth momentum while offering compelling long-term returns for shareholders. Moreover, the Project represents the Company’s first successful investment in Taiwan which will provide a strategic platform for the future growth,” Mr. Jakgrich concluded.