MHI Vestas Signs Contract in Taiwan for Local Supply of Switchgear

Confirming the first electrical component for local supply in the budding offshore wind industry in Taiwan, MHI Vestas has signed a conditional agreement with Mitsubishi Electric Europe B.V., with Taiwanese manufacturer, Shihlin Electric Co., included as an integral part of the production.

The contract, signed today by executives from MHI Vestas and Mitsubishi Electric Europe, meets the Taiwan government’s localisation requirements for local production, sending a signal that MHI Vestas is aggressively advancing its industrial plans in the market.

“It is clear that we’re moving aggressively with our industrial plans in Taiwan,” said Lars Bondo Krogsgaard, MHI Vestas Co-CEO. “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 our sustainable localisation efforts, up to NT$9.2b in economic value and 5,300 clean energy jobs will come to Taiwan.”

The assembly and testing of high voltage switchgear, a key electrical component in offshore wind turbines to help control and protect electrical equipment, will be done at Shihlin’s factory in Hsinchu, with first delivery in 2022 for projects installed in 2023 and 2024.

“To manufacture switchgear for this new industry here in Taiwan, we have selected the reputable local manufacturer, Shihlin Electric as a partner,” said Noriyuki Takazawa, Mitsubishi Electric Corporate Executive Group Senior Vice President. “We have a very strong historical link with Shihlin Electric. We are confident that Shihlin Electric and Mitsubishi Electric will successfully supply switchgear with our proven technology.”

“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 Co. “We are pleased to contribute to the growth of renewable energy and the development of the economy in Taiwan through MHI Vestas’ projects.”

MHI Vestas has now signed three contracts for local production, including CS Wind and Chin Fong for towers and Swancor for blade materials as part of a formal localisation framework made in October 2018 with Copenhagen Infrastructure Partners (CIP). The comprehensive localisation scope advanced by MHI Vestas and CIP promises to create up to *5,300 jobs and *NT$9.2b (€264 million) in economic value for Taiwan in localised components alone, which does not include installation, commissioning, and operation and maintenance for the lifetime of the turbine.

“MHI Vestas’ signing with Mitsubishi Electric today marks another step forward in turbine localisation in Taiwan. We are very proud to remain the only project that continues to bring localisation efforts,” said Jesper Krarup Holst, CEO 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. The tremendous amount of hard work leading to this partnership demonstrates that localisation is a complex process. And the support of a pragmatic framework is essential in building a sustainable supply chain.”

MHI Vestas is slated to provide its 9 MW turbine platform for three upcoming projects in the Taiwan offshore wind market, totaling 900 MW in energy production.