EGCO Group expands footprint in Taiwan
Electricity Generating Public Company Limited or EGCO Group on Friday (December 20) announced its first successful investment in the 64- megawatt Yunlin offshore wind farm project which is under construction in Taiwan, through the acquisition of a 25-per-cent ownership interest in Yunlin Holding GmbH.
The Group’s president Jakgrich Pibulpairoj, said the EGCO wholly owned subsidiary Greenwing Energy BV entered into a share purchase agreement to acquire a 25-per-cent interest in Yunlin Holding GmbH (Yunlin) owned by Taiwan Offshore Holding GmbH on December 19.
This investment was approved by the EGCO board on November 22, The transaction is expected to be closed in the first quarter of 2020, subject to completing all closing conditions including consent by Taiwanese authorities.
Yunlin is a holding company which owns 100 per cent of Yunneng Wind Power. The latter 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.
Yunneng entered into power purchase agreements with Taiwan Power Company (Taipower) on December 11, 2018 for each of its two phases.
Through these agreements, Yunneng 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 fourth quarter of 2020, and phase 2 comprising 288MW scheduled for completion in the third 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 programme emphasizes onshore and offshore wind as well as solar power with a target to achieve 20 per cent 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,” Jakgrich said.
