He Cangnan No. 6 offshore wind project it received an approved investment of $457 million from Windey Energy Technology Group to expand its capacity off the coast of Zhejiang, China, the development will reach a capacity of 300 MW and will be managed through its subsidiary, Wenzhou Yunxin Wind Power. The initiative includes both offshore and onshore electrical infrastructure and represents a significant increase over the capacity initially authorized for the project.
Cangnan No. 6 offshore wind project increases to 300 MW
Following further regulatory approval, Windey Energy increased the authorized capacity of Cangnan No. 6 from 210 MW to 300 MW, this change also led the company to adjust the total planned investment for the development, specifically setting the budget at 3.07 billion yuan, equivalent to approximately US$457 million. The facility will be located opposite Cangnan County, within Wenzhou City, Zhejiang Province, the company plans to install around 20 wind turbines of 15 MW each, however, the final quantity and model of the turbines will depend on the decisions made during the execution of the project.
15 MW wind turbines and a 220 kV marine substation
In addition to the turbines, Cangnan No. 6 will include a new offshore substation this 220 kV infrastructure will allow for the management of the electricity generated by the wind turbine array before its transmission to the mainland. Onshore, the company also plans to build a centralized control center, providing the park with the infrastructure to monitor and support its operations from the coast, the planned use of 15 MW wind turbines will allow the park to reach its authorized capacity of 300 MW with approximately 20 units; the final configuration will be determined during implementation.
Windey Energy will finance most of it with loans
In financial terms, approximately 20 % of the necessary resources will come from equity contributions, with the remaining amount covered by loans from financial institutions, therefore, the planned structure will have a majority debt component compared to the resources contributed directly as equity to execute the project. The Windey Energy board of directors approved the transaction on August 26, according to information released by the company, the investment does not require shareholder approval and does not constitute a related-party transaction or a substantial asset restructuring.
The timing and profitability remain subject to risk
Despite the investment approval, Cangnan No. 6 remains exposed to factors that could modify its execution timelines and economic results, among these, Windey Energy pointed to macroeconomic conditions, applicable sector policies, market developments, and construction progress. These factors could affect both the schedule and the projected profitability with the newly authorized capacity Cangnan No. 6 is moving towards a 300 MW offshore wind farm supported by high-power turbines and offshore and onshore electrical infrastructure, its final configuration will depend on the development of the works and the equipment selected for installation.
Source: Offshore Energy
Photo: Shutterstock
