Pine Wind Power Co., Ltd, a subsidiary of J&V Energy, has recently finalized an agreement to acquire 26% of the shares in the offshore wind farm Formosa 2, located off the coast of Miaoli, Taiwan. This investment includes equity and debt shares initially held by Macquarie Asset Management.
Formosa 2, operational since March 2023, represents a major infrastructure with a production capacity of 376 megawatts, supported by 47 Siemens Gamesa 8 MW turbines. This capacity supplies electricity to approximately 380,000 Taiwanese households annually. The project, a pioneer in large-scale offshore wind development in Taiwan, was initially developed in partnership with JERA and Synera Renewable Energy, two key players in the sector.
A strategic position for Pine Wind Power
This acquisition marks a new step for Pine Wind Power in strengthening its footprint in the Taiwanese renewable energy market. Backed by a partnership with Taiwan Life Insurance Co., Ltd., and He Jun Energy Co., Ltd., the company has structured its financing to ensure the success of this transaction.
For J&V Energy, this investment is part of a broader strategy to diversify its portfolio. Kai Tan, Deputy CEO of the company, highlighted the stable financial prospects offered by long-term contracts with the public operator Taipower. This type of secure cash flow represents a significant advantage in a context where investors are seeking reliable returns amidst global economic uncertainties.
Consolidating a key market
The acquisition of shares in Formosa 2 takes place in an environment where offshore wind plays a central role in Taiwan’s energy policy. The government is aiming for an accelerated transition to renewable energy sources, positioning the offshore sector as a strategic lever. This trend is attracting not only local players but also experienced international investors, as demonstrated by Macquarie Asset Management’s initial commitment to this project.
Pine Wind’s investment also capitalizes on the regional momentum around offshore wind. J&V Energy, already involved in developing Formosa 4, Formosa 5, and Huan Yang wind farms, seeks to leverage its local experience to secure revenues and increase its influence in the sector.
A transfer of expertise among partners
The agreement between Macquarie and Pine Wind Power illustrates a common strategy in the sector: a developer initiates an ambitious project before partially divesting its shares to local institutional investors better suited for long-term asset management.
According to Edward Northam, Head of Renewable Energy at Macquarie, this approach aims to combine international expertise in infrastructure development with the stability and commitment of national investors. This model allowed Macquarie to play a pioneering role in the emergence of offshore wind in Taiwan, while opening the door for local capital, such as that of Taiwan Life and He Jun Energy.
