Global Power Synergy Public Company Limited (GPSC) announced that Board of Directors Meeting No. 6/2021, which was convened on May 21, 2021, resolved to approve the company to submit an offer to buy shares in CI Changfang Limited and CI Xidao Limited (Target Companies) from Copenhagen Infrastructure II K/S (CI-II) and Copenhagen Infrastructure III K/S (CI-III).
On July 14,2021, Global Renewable Synergy Company Limited (GRSC), a wholly-owned subsidiary of the company, has entered into Share Purchase Agreement With CI-II and CI-III whereby GRSC or a newly established subsidiary of the company will acquire a 25% interest in the Target Companies with the total investment of approximately USD 500 million until the project completion.
Under the Share Purchase Agreement, the share acquisition will be completed upon certain conditions precedent being satisfied, e.g., filing for Foreign Investment Approval and filings with the Ministry of Economic Affairs, Taiwan R.O.C. The company expects that the conditions precedent will be satisfied, and that the transfer of shares will be completed before the end of the 2nd quarter of 2022.
The Target Companies are developing and constructing an offshore wind power project in Taiwan with a total capacity of 595 megawatts, comprising the Changfang Project and the Xidao Project with capacity of 547 megawatts and 48 megawatts, respectively.
The Changfang phase 1 project with a capacity of 96 megawatts is expected to achieve first power in 2022.
The Changfang phase 2 and Xidao with a capacity of 499 megawatts are expected to achieve first power in 2023. The project is expected to start full commercial operation date in the 1st quarter of 2024.
The electricity generated is sold to Taiwan Power Company, the state-owned power company and the single buyer of electricity in Taiwan, under long-term Power Purchase Agreements (the PPA) of 20 years with a fixed Feed-in Tariffs scheme throughout the project period. This investment will generate long-term stable cash flows for the company.
This investment aligns with the company’s growth strategy on expansion of investments in renewable energy abroad. Taiwan, one of the company’s focus countries, has high growth potential with government supports to invest in renewable energy business especially offshore wind technology. It is also a joint investment as well as the business collaboration with CI-II and CI-III, funds under the management of Copenhagen Infrastructure Partners (CIP), a leading fund management company from Denmark specializing in the development of offshore wind power projects and also other renewable energy projects globally.