Renewables: support for one of Asia’s largest offshore wind farms

Taiwan has long-held ambitions to be a world leader in offshore wind power. With the exception of China, it’s now the largest offshore wind market in Asia, and aims to achieve 21GW offshore wind capacity by 2035.

Key to that goal are the four Greater Changhua Offshore Wind Farms, currently under construction in the Taiwan Strait. The project, which is being managed by the Danish developer Ørsted, was approved in 2018. The first turbines were installed and sending electricity to the grid by April 2022.

Once all four farms come online, the turbines will double the country’s offshore wind capacity and be capable of supplying energy to over 2.8 million homes. It’s estimated carbon emissions will reduce by up to 1,118,000 tonnes per year.

The challenge

Greater Changhua 2 is a 632 MW offshore wind farm comprised of both Greater Changhua 2a, which is already operational, and Greater Changhua 2b. The latter is still under construction but is due to be completed by 2026. Such a large-scale project required finance in collaboration with 25 banks and 4 other export credit agencies from Denmark, Norway, South Korea and Taiwan. 

The solution

UK Export Finance (UKEF) is providing a €146m Buyer Credit Guarantee to support this phase of the project. UKEF’s Buyer Credit Facility provides a guarantee to banks making a loan to an overseas buyer. It enables the exporter to receive payment upfront, while the buyer can access extended repayment terms. The finance is provided on the condition the project procures supplies from the UK.

The impact

This project will unlock opportunities for British exporters and support jobs across the UK’s renewable energy supply chain. Companies such as Cadeler, CRP Subsea, Ordtek and Cathie will now be able to secure contracts to provide specialised services and critical components.

The investment also reinforces Britain’s position as a leader in the low-carbon transition, a key ambition set out in the government’s industrial strategy. UKEF aims to provide at least £10bn in financing for sustainable and renewable projects by 2030, enabling the UK to build export opportunities in clean growth sectors and support global decarbonisation efforts.