Synera Renewable Energy Group (SRE Group) has taken a significant step forward in Taiwan’s offshore wind sector, signing a long-term corporate power purchase agreement (CPPA) with Taiwan Smart Electricity & Energy (TSEE) for the 495MW Formosa 4 offshore wind project. This agreement allocates a fixed portion of the project’s generation to TSEE once grid connection is achieved, facilitating the trade of green electricity via TSEE’s platform. The move underscores the growing demand for renewable energy among Taiwanese businesses striving for decarbonisation.
The Formosa 4 project, with a maximum potential capacity of 1,104MW, is poised to become a cornerstone of Taiwan’s clean energy transition. Located 18km-20km off the coast of Miaoli County, the wind farm is expected to generate enough clean energy to power approximately 500,000 households annually upon completion. SRE secured the project in the first auction round of the third-phase zonal development in 2022 and received its establishment permit in late 2024, making it the first among all round-one winners to achieve this milestone.
SRE chairperson Lucas Lin emphasised the strategic importance of the agreement, stating, “Offshore wind is widely recognised as a critical source of large-scale, reliable clean energy. We are pleased to partner with TSEE. This mutually beneficial agreement provides long-term revenue certainty and strengthens Formosa 4’s financial foundation, while making stable, reliable renewable power accessible to a broader range of corporate offtakers. This is essential for these businesses to maintain operational resilience, enhance competitiveness, and progress toward their sustainability goals.”
The agreement is not just a financial boon for SRE but also a significant development for Taiwan’s renewable energy landscape. By providing a stable revenue stream, the CPPA enhances the project’s financial viability, potentially accelerating the development of other offshore wind projects in the region. Moreover, the partnership with TSEE ensures that the green electricity generated by Formosa 4 will be traded and distributed efficiently, meeting the rising demand for renewable energy among Taiwanese businesses.
Earlier this year, SRE selected Siemens Gamesa to supply 35 of its 14MW wind turbines for the Formosa 4 project, further solidifying the project’s technical foundation. This collaboration highlights the growing trend of international partnerships in the renewable energy sector, bringing together global expertise and local innovation to drive progress.
The Formosa 4 project is a testament to Taiwan’s commitment to expanding its offshore wind capacity as part of its broader energy transition strategy. As more businesses in Taiwan set ambitious decarbonisation targets, the demand for renewable energy is expected to grow exponentially. The SRE-TSEE agreement sets a precedent for similar partnerships, demonstrating how corporate power purchase agreements can bridge the gap between renewable energy suppliers and offtakers, fostering a more sustainable and resilient energy future.
This development is likely to inspire other renewable energy projects in the region, encouraging further investment and innovation in the offshore wind sector. As Taiwan continues to position itself as a leader in renewable energy, the Formosa 4 project and its associated agreements will play a pivotal role in shaping the country’s energy landscape and contributing to global efforts to combat climate change.