Local production is the nuts and bolts in the Taiwanese offshore wind industry. Domestic production of main components is thus not the only valid way of complying with localization requirements and qualifying for power purchase contracts with Taipower. In step with the market's maturation and more wind farms being connected, the volume of miscellanea needed for local handling only grows.
Now MHI Vestas has ensured sources for two additional components. The OEM has entered an agreement with Boltun Corporation for the supply of fastening material, and Walsin Lihwa Corporation will deliver internal cables for wind turbines, MHI Vestas informs in a press statement.
"As the offshore wind sector will be a key part of Taiwan’s energy story, we are pleased to be working with MHI Vestas to deliver fasteners for their first projects in the country," writes Boltun Sales Director Jason Chen in the media release.
These Taiwanese companies will supply parts to two CIP projects Changfang 2 and Xidao, with delivery set for early 2023. Assuming CIP also finalizes MHI Vestas' preferred supplier nomination for the Zhong Neng project, this project and its components will also be covered by the deal. The Japanese-Danish manufacturer will deliver the first of its V174 machines for the first Changfang project, planned for 2022 and for which localization requirement are less rigid.
CIP got started rather late with its first projects in Taiwan, with the final investment decision first having been made in February due to factors including challenges in reaching an accord with Taiwanese authorities on the proportion of local content.
Since then, MHI Vestas has announced a range of localized production deals. The OEM also notes in the press statement that the four aforementioned developments are the still the only facilities approved in the government's localization assessments of projects allocated in Taiwan's first offshore wind tender held in June 2018.
"We continue to prioritize the sustainable development of Taiwan’s local suppliers," writes MHI Vestas APAC Regional Manager Masato Yamada.
"As the only wind turbine manufacturer to be sourcing fasteners and cables from Taiwan, we are particularly pleased to be working alongside Boltun and Walsin Lihwa Corporation as they gain valuable experience and expertise in the offshore wind sector. We look forward to continue working with the government to deliver a competitive, regionally-capable Taiwanese offshore wind supply chain," he adds.
Exactly how long MHI Vestas will be alone in having secured such contracts will be settled in Toronto. In May, Siemens Gamesa informed, as a part of a larger localization package, that it signed agreements for domestic production of fastening equipment and cables with Würth and Sincon, respectively. Both deals, however, are pending Northland Power's FID for its and Yushan Energy's Hai Long 2 wind farm.
English Edit: Daniel Frank Christensen