Ørsted finalized a 90 billion TWD or 2.75 billion dollar financing package on July 10 2025 for its 632 MW Greater Changhua 2 offshore wind farm in Taiwan backed by 25 banks and five export credit agencies. The project with Greater Changhua 2a operational and 2b under construction set for completion by late 2025 supports Taiwan’s energy transition. With a 20 year power purchase agreement with TSMC can this deal catalyze 1 trillion dollars in global offshore wind markets or will 100 million dollar regulatory delays and supply chain issues limit impact?

Project Financing and Structure

The 2.75 billion dollar package includes loans from 25 banks and guarantees from Export Finance Norway Export and Investment Fund of Denmark Export Import Bank of Korea Export Import Bank of the Republic of China and UK Export Finance. Greater Changhua 2 located 50 to 60 kilometers off Changhua County comprises the 294.8 MW 2a with 36 turbines and the 337.1 MW 2b with 24 Siemens Gamesa 14 MW turbines. Ørsted plans an equity divestment post 2025 commissioning building on its 1.6 billion dollar sale of 50 percent of Greater Changhua 4 to Cathay Life in 2024. The deal supports Ørsted’s 9.9 GW operational wind capacity.

Environmental and Economic Impact

Greater Changhua 2 will power 400000 households cutting 0.3 million tons of CO2 equivalent yearly contributing 0.01 percent to global 35.6 billion ton emission reductions. The project aligns with Taiwan’s 20 GW offshore wind goal by 2035 and a 920 MW corporate power purchase agreement with TSMC signed in 2020. It creates 2000 jobs and boosts Changhua County’s economy by 500 million dollars annually. Ørsted’s 900 MW Greater Changhua 1 and 2a already operational since 2024 double Taiwan’s offshore wind capacity.

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Corporate Governance and Transparency

Transparent governance drives Ørsted’s strategy. ESG reporting aligns 80 percent of its 71 billion DKK 2024 revenue with Science Based Targets avoiding 50 million dollars in compliance risks. The financing package leverages Ørsted’s experience structuring 1 billion dollars in prior APAC deals. Partnerships with 19 Taiwanese firms ensure local supply chains saving 100 million dollars in logistics. Governance reforms could mobilize 1 trillion dollars in global green investments per Seville Commitment goals supporting 0.01 percent of CO2 equivalent reductions.

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Challenges to Scaling

Supply chain bottlenecks like turbine blade shortages risk 200 million dollars in delays with 30 percent of components imported. Regulatory gaps with 40 percent of Taiwan’s renewable policies unenforced could misallocate 500 million dollars. Global funding cuts like 1 billion dollars post 2025 Paris withdrawal limit private capital. High capital costs for 14 MW turbines at 150000 dollars per MW challenge 20 percent of the budget. Ørsted’s 7.6 GW global construction pipeline strains resources needing 50 million dollars in partnerships.

Future Outlook

By 2026 Greater Changhua 2 will add 632 MW to Ørsted’s 2 GW Taiwan capacity powering 2 million households. The project could drive 5 billion dollars in regional wind investments. Scaling to 50 global projects needs 100 million dollars in partnerships to align 1 trillion dollars in markets. Job growth and 2 billion dollar GDP gains may support 10 percent of Taiwan’s 2035 energy goals.

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