We, The Chugoku Electric Power Co., Inc. (“Chugoku Electric”), are pleased to announce that we and Chudenko Corporation (“Chudenko) have concluded to participate offshore wind power generation business in Yunlin county located in western Taiwan.
We have signed a share purchase agreement on 4th April 2019 in Hamburg, German with German wind farm developer, wpd A.G. registered under the laws of German, in relation to acquisition of 27 percent shares of Yunlin Holding GmbH *1(“Yunlin HD”) through our newly established investment company*2 (“C&C”) and together with our consortium members, Sojitz Corporation, JXTG Oil & Energy Corporation, Shikoku Electric Power Co., Inc.
Substantially, C&C has acquired 6.75% shares of offshore wind power project company, Yunneng Wind Power Co., Ltd. registered under the laws of Taiwan through Yunlin HD.
The 640 MW offshore wind power plant will be constructed along the coast of Yunlin County, Taiwan by December 2021, and will provide eco-friendly power supply to Taiwan Power Company at a fixed rate for 20 years under the Renewable Energy Development Act and this is our first significant investment in an overseas offshore wind power business.
As the domestic electric power business environment is becoming increasingly competitive, we have positioned our overseas business as one of our core strategies. By utilizing the accumulated knowledge and experience of the electric power business, we will continue to participate in new overseas projects to reinforce our portfolio and its profitability.
*1 100% subsidiary of wpd A.G. Group, special purpose company for this project.
*2 “C&C Investment Corporation” Chugoku Electric and Chudenko 50:50 joint venture