MHI Vestas Proceeds Expanding Existing Supply Chain in Taiwan

June 24, 2020 | Renewables | Energy Facts Staff Writer | 3min

Another key component to be sourced locally in Taiwan

MHI Vestas Offshore Wind has concluded a contract to source high voltage switchgear from within Taiwan, expanding existing supply chain commitments and becoming the first offshore wind turbine supplier to localise switchgear.

MHI Vestas has finalised a purchase agreement with Mitsubishi Electric Europe B.V. (Mitsubishi Electric) to source switchgear for upcoming offshore wind projects in Taiwan through the participation of local Taiwanese manufacturer, Shihlin Electric and Engineering Corporation (SEEC). The purchase agreement is expected to enable Mitsubishi Electric and SEEC to build expertise through supplying MHI Vestas’ Taiwanese offshore wind projects, to prepare for potential export to the broader Asia-Pacific (APAC) region.

The assembly and testing of high voltage (66kV) switchgear, a key electrical component in offshore wind turbines to help control and protect electrical equipment, will be done at SEEC’s factory in Hsinchu, with first delivery in 2022 for projects to be installed in 2023 and 2024. MHI Vestas is the first offshore wind turbine manufacturer to source high voltage switchgear from within Taiwan.

In collaboration with developers Copenhagen Investment Partners (CIP) and China Steel Corporation (CSC), MHI Vestas has developed and is in the process of delivering the leading supply chain localisation plan for offshore wind projects in Taiwan.

“The fact that we will be able to source switchgear locally in Taiwan is a significant achievement for MHI Vestas and for the development of the local offshore wind supply chain in-country,” said Maida Zahirovic, MHI Vestas’ Taiwan Business Director. “We will continue delivering the leading localisation plan in Taiwan in conjunction with our local partners, and we look forward to working with Mitsubishi Electric and SEEC on switchgear production, helping them to prepare for export throughout the APAC region.”

“Working closely with our reputable partner SEEC in Taiwan is really a great opportunity,” said Toshimitsu Ito, Senior General Manager of Mitsubishi Electric. “We are committed to contributing to Taiwan’s sustainable society, by supplying localised switchgear to MHI Vestas in its Taiwanese projects.”

“With this memorable step, Shihlin is grateful to be a supply chain partner for Mitsubisi Electric and to be able to contribute to the future development of renewable energy in Taiwan”, said Yang Tsun-Ching, Vice Chief Operations Officer of SEEC.

MHI Vestas has been awarded firm contracts for the Changfang and Xidao projects developed by CIP (total combined capacity of 589 MW), as well as preferred supplier status for the 300 MW Zhong Neng project developed by CSC and CIP.

Presently, MHI Vestas has signed firm purchase agreements for critical components such as blades and blade materials (bonding glue, resin, pultruded carbon plates), and has also signed a contract in Taiwan for tower supply.