Industrial, Sourcing Renewables - July 10, 2020
TSMC signs world's largest corporate renewables PPA
Taiwan Semiconductor Manufacturing Company (TSMC) signed last week what is being called the "world's largest renewables corporate PPA" in a 20-year agreement for the entire output of a 920 MW offshore wind farm owned by Ørsted.
The integrated circuit manufacturer, which produces hardware for smartphones sold around the world, will begin receiving power from the Greater Changhua 2b & 4 wind farm when it reaches commercial operations in 2025 or 2026, subject to grid availability and Ørsted’s final investment decision.
“TSMC is happy for this opportunity to collaborate with Ørsted and not only expand the adoption of renewable energy, but also to work towards Taiwan’s energy transition to build world-class industrial environment," J.K. Lin, Senior Vice President of Information Technology and Materials Management & Risk Management at TSMC, said in a statement. "As a corporate citizen, TSMC is taking ‘green action’ to carry out our responsibility to environmental protection.”
Following the announcement of this massive wind energy agreement, TSMC claimed on July 8 that by the end of July 2020 they will have a total of 1.2 GW of renewable energy contracted under PPAs and expect these purchases to eliminate 2.189 million metric tons of carbon emissions annually.
TSMC purchased 910 GWh in renewable energy, RECs and carbon credits in 2019. They were able to power 100% of their overseas sites with clean energy through these purchases. Prior to that, TSMC became Taiwan’s largest purchaser of clean energy when they purchased 400 GWh between 2015 and 2017 through the R.O.C. Ministry of Economic Affairs’ voluntary “green power purchasing program.”
TSMC has previously set a target of sourcing 25% of the power used at their fabrication facilities and 100% of the power used at non-fabrication facilities from renewable sources by 2030. They have a longer-term goal to source 100% of all their power from renewable energy.
“As a driver of green manufacturing, TSMC is committed to the sustainable development of this land where we live, and we will resolutely act as responsible purchasers to actively seek all types of reasonable and practicable renewable energy solutions,” Lin said in a statement. “We hope to drive the industry towards low-carbon, environmentally friendly action, while supporting the United Nations’ Sustainable Development Goals to do our utmost to develop a sustainable semiconductor supply chain.”
Today's Leaders. Tomorrow's Heroes.
The George Washington University
- Retail Suppliers are Changing the Game for Renewable Energy Buyers
- Being an Energy Superhero in Challenging Times: Maximizing Value through Active Retail Portfolio Management
- A Microgrid For Your Business is More Important Now Than Ever. Find out why.
- Is the Virtual Power Purchase Agreement the best path to achieving your sustainability goals?
- Shape-shifting: Why a turbine’s shape is your most important asset