Danish clean energy company Ørsted announced that it has completed the sale of a 50% stake in the 583-megawatt (MW) Greater Changhua 4 offshore wind project in Taiwan. The stake was sold to an affiliate of Cathay Life Insurance, a local insurance company, for DKK 11.6 billion (USD 1.64 billion/EUR 1.56 billion). The sale was first announced on December 11, 2023.
Ørsted retains ownership of the other 50% of the project, which is currently under construction. Greater Changhua 4 is part of the larger Greater Changhua complex, which will have a total capacity of 1.82 gigawatts (GW) when all projects are completed.
The Greater Changhua complex includes two operational offshore wind farms, Greater Changhua 1 and Greater Changhua 2a. Ørsted is also building two additional offshore wind farms within the complex, Greater Changhua 4 and Greater Changhua 2b.
The company had previously sold a 50% stake in the Greater Changhua 1 wind farm to Caisse de dépôt et placement du Québec (CDPQ) and Taiwanese private equity fund Cathay Private Equity (Cathay PE). The divestment of part of its stake in Greater Changhua 4 is part of Ørsted’s strategy to develop large-scale renewable energy projects in collaboration with partners. The Greater Changhua complex will supply clean electricity to the Taiwanese market and contribute to Taiwan’s renewable energy targets.
Several companies have withdrawn or reduced investments in Taiwan’s renewable energy sector due to rising costs and regulatory challenges. WPD, a German developer, sold a part of its stake in the Yunlin Offshore Wind Farm due to construction delays and cost overruns, WPD stake which was 23 percent was later acquired by French energy mogul, Total.
