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MHI Vestas widens Taiwan offshore wind localisation with switchgear deal

Deal signed with Mitsubishi Electric and Shihlin Electric for the local assembly and testing of high voltage switchgear in Taiwan

Danish-Japanese offshore wind turbine joint venture MHI Vestas has signed a conditional agreement with Mitsubishi Electric Europe and Taiwanese manufacturer Shihlin Electric on the local assembly and testing of high voltage switchgear in Taiwan.

Switchgear is a key electrical component in offshore wind turbines to help control and protect electrical equipment. First supplies will be delivered from Shihlin’s factory in Hsinchu in 2022 for projects installed in 2023 and 2024.

“It is clear that we’re moving aggressively with our industrial plans in Taiwan,” said Lars Bondo Krogsgaard, MHI Vestas Co-chief executive.

“Signing with industry leader Mitsubishi Electric, who will work with Shihlin Electric for local switchgear assembly, speaks to the tremendous progress MHI Vestas has made in building up the local offshore wind supply chain.”

As a result of the localisation efforts, up to 9.2bn New Taiwan Dollars (US$293m) in economic value and 5,300 clean energy jobs will come to Taiwan, Bondo Krogsgaard predicted.

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MHI Vestas previously had already signed contracts for local Taiwanese production with CS Wind and Chin Fong for towers and Swancor for blade materials as part of a localisation framework made in October 2018 with Copenhagen Infrastructure Partners.

“MHI Vestas’ signing with Mitsubishi Electric today marks another step forward in turbine localisation in Taiwan,” said Jesper Krarup Holst, chief executive of CIP’s Changfang and Xidan Projects.

“The collaboration between Mitsubishi Electric and Shihlin Electric is an example of bridging international experience with local knowledge and consolidating the technical capabilities of both companies.”

MHI Vestas is slated to provide its 9MW turbine platform for three upcoming projects in the Taiwan offshore wind market, that have a combined capacity of 900MW.

“We are delighted at this new opportunity to join with Mitsubishi Electric in supporting the localisation of their 66kV switchgear here in Taiwan”, said Yang Tsun-Ching, vice chief operations officer at Shihlin Electric.

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