Localization Milestone Achieved —Hai Long Offshore Wind Project and TECO Ink Onshore Substation EPC Contract

Hai Long Offshore Wind Project and TECO signed a preferred supplier agreement of onshore substation with an installed capacity of 1,044MW today (29th). This is the only onshore substation built for offshore wind farms in Taiwan that exceeds 1GW, and this collaboration marks an important milestone in Hai Long’s localization plan.

TECO will participate in the Hai Long project as EPC Contractor for the onshore step-down substation, including the design, procurement, construction and commissioning for all aspects of the onshore substations of Hai Long. TECO will build an onshore substation transmitting the power output from all three wind farms—Hai Long 2A (300MW), 2B (232MW) and Hai Long 3 (512MW) to Taiwan Power Company’s substation to connect to the grid. The grid connection of the 3 wind farms is expected to start successively from 2024. Meanwhile, Hai Long and TECO will also work together with Tier 1 and 2 suppliers and procure main power equipment from local manufacturers to fully support the goal of localization of offshore wind industry.

Hai Long 2 and 3 wind farms are located 40-50 kilometers off the coast of Changhua, with only Hai Long 2A under Taiwan’s feed-in-tariff program and required for localization of the components including the transformer, GIS and switchgear of the onshore step-down substation. This time, Hai Long goes beyond the government's localization requirements, contracting TECO, a local Taiwanese company, as EPC contractor for the Onshore Substation not only for Hai Long 2A, but also for Hai Long 2B and Hai Long 3 (which don’t have any localization obligations).  Hai Long Project Director Felipe Montero said TECO has a wealth of experience in electromechanical engineering, power equipment and the construction of onshore substations for offshore wind, which makes them the ideal local partner for the construction of Hai Long’s Onshore Substation. This collaboration is symbolic not only in terms of the integration of international and local standards, but also in achieving a major milestone in Hai Long’s localization plan.