Danish renewable energy company Orsted has sold a 55% stake in its Taiwan offshore wind project “Greater Changhua 2” to Cathay Life Insurance and Cathay Power, marking another major transaction in Asia’s growing renewable energy sector.
The deal is valued at around DKK 5 billion (approximately $790 million).
Following the transaction, Cathay becomes the majority shareholder in the project, while Orsted will continue to operate and maintain the wind farm under a long-term operations and maintenance (O&M) agreement.
Key Details of the Deal
The Greater Changhua 2 Offshore Wind Farm has a total installed capacity of 632 megawatts (MW) and is one of Orsted’s flagship projects in Taiwan.
The project is divided into two parts:
- Greater Changhua 2a (295 MW) – already operational
- Greater Changhua 2b (337 MW) – currently under construction and expected to become operational in 2026
Despite reducing its ownership, Orsted will remain responsible for the technical operation of the wind farm, ensuring continuity in performance and maintenance.
Why Orsted Sold the Stake
Orsted said the sale is part of its broader strategy to strengthen its balance sheet and reduce financial risk amid rising costs in the offshore wind sector.
In recent years, the industry has faced challenges such as:
- Higher construction and supply-chain costs
- Inflationary pressures
- Increased financing expenses
By bringing in a strong local financial partner, Orsted can free up capital while continuing to play a key role in managing the project. The company has been actively pursuing asset sales and partnerships to fund future renewable energy developments.
Why the Deal Matters for Cathay
For Cathay Life Insurance, the investment offers:
- Long-term, stable returns, well suited to insurance funds
- A stronger presence in green and ESG-focused investments
- Direct participation in Taiwan’s clean energy transition
Institutional investors like insurance companies typically favor infrastructure assets such as renewable energy projects because they provide predictable cash flows over long periods.
Significance for Taiwan’s Energy Transition
Taiwan is rapidly expanding its offshore wind energy capacity as part of its plan to reduce dependence on fossil fuels and strengthen energy security.
This deal highlights:
- Growing participation of local institutional investors in renewable projects
- Increasing collaboration between global developers and domestic financial groups
- Taiwan’s emergence as a key offshore wind market in Asia
The transaction also reinforces investor confidence in Taiwan’s renewable energy policy framework.
Company Overview
Orsted
Orsted is one of the world’s leading offshore wind developers, with projects across Europe, Asia, and North America. The company has transformed itself from a fossil-fuel-based utility into a pure-play renewable energy company, with offshore wind as its core business.
Cathay Group
Cathay Group is one of Taiwan’s largest financial conglomerates. Through entities such as Cathay Life Insurance and Cathay Power, the group invests in infrastructure and renewable energy projects that offer long-term and stable returns.
Outcome
The sale of a majority stake in Greater Changhua 2 reflects a broader trend in the renewable energy industry, where developers are increasingly sharing ownership while retaining operational control.
For Orsted, the deal improves financial flexibility and risk management. For Cathay, it provides a long-term green investment aligned with ESG goals. At the same time, the partnership supports Taiwan’s ambition to become a regional leader in offshore wind power.
Source: Orsted news
