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Renewable Energy Promotion Policies

in Taiwan

Bureau of Energy

Ministry of Economic Affairs

October 2015

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• Current Development of Renewables in Taiwan

• Taiwan’s New Renewable Energy Policy

Outline

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Current Development of Renewables

in Taiwan

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Current Development of Renewables (1/3)

Conventional Hydropower • Total hydro power capacity of 2,081.4 MW, of which the Public

utilities (Taipower) accounted for 98% of large hydro power plants (2,042.4 MW), privately owned 39.0 MW only

Wind Power • There are 329 onshore wind turbines commissioned, totalling 644.4

MW in capacity.

Tao-Yuan: 30 MW Chuntung, Penhu: 4.8 MW

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PV: 687.1 MW installed

• Bureau of Energy, MOEA funds many ongoing deployment programs：

Solar City, Solar Top, Solar Campus, Emergency Systems in Remote

Areas or Isolated Islands, Demo Farms, Solar Communities, Bidding

Procedure of Solar Power Equipment, etc.

BIPV demonstration system The Main Stadium of The World Games 2009 Kaohsiung: 1 MW

Current Development of Renewables (2/3)

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Biomass power: 740.5 MW • Municipal Solid Waste Incineration: 624.4 MW (25 plants)

• Biogas: 19.1 MW (4 landfills)

• Waste from Industries and Agriculture: 97 MW

Solar Water Heaters • 1.61 million m2 of heat collectors installed from years 2000 to 2014, effective

households penetration rate 3.79% (around 317 thousand households)

• Ranked No. 9 globally for installed density (land area based)

Biofuels • Biodiesel: Mandatory B1 since July 2008, B2 on June 2010 (temporarily

suspended for policy review)

• Bioethanol: E3 Gasohol Programme in Taipei and Kaohsiung Cities

Current Development of Renewables (3/3)

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Taiwan’s New Renewable Energy Policy

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2008.06.05

2009.04.15-16

2009.07.08

2010.01

2010.05

Establishment of the “Committee on Energy Conservation and Emission Reduction”

“Renewable Energy Development Act”

Amendment of “Energy Management Law”

The 3rd “National Energy Conference”

“Framework of Sustainable Energy Policy”

Approval of the “National Master Plan on Energy Conservation and Emission Reduction”

2011.11.03 New Energy Policy announced: to “Steadily Reduce Nuclear Dependency, Gradually Move Towards a Nuclear-free Homeland, and Create a Low-carbon Green Energy Environment”

Taiwan’s New Energy Policy

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Source: Bureau of Energy, Ministry of Economic Affairs, Taiwan

Installation of Renewable Energy

• The installed capacity of renewable energy was 4,153.3 MW at the

end of July 2015.

• Targeted renewable power generation capacity is 17.25 GW by 2030,

raised from 13.75 GW (announced on 28 May 2015).

Almost quadrupled compared to 2014 level

Energy Source 2014 2015 2020 2025 2030

Solar PV 620 1,115 3,615 6,200 8,700

Wind On-shore 637 737 1,200 1,200 1,200

Off-shore 0 15 520 2,000 4,000

Hydro Power 2,081 2,089 2,100 2,150 2,200

Biomass 741 741 768 813 950

Geothermal 0 0 100 150 200

Total 4,079 4,697 8,303 12,513 17,250

Unit：MW

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Mechanism of Feed-in Tariffs (1/2)

• In order to systematically promote renewable

energy, in July of 2009, Taiwan promulgated the

Renewable Energy Development Act. The core

strategy of the Act is a Feed-in-Tariff system.

• A Committee is formed to decide the calculation

formula and feed-in tariffs. Tariffs and formula

should be reviewed annually, referring to

technical advancement, cost variation, goal

achievement status, etc.

no degression system in place

• Tariffs shall not be lower than the average cost for

fossil-fired power of domestic power utilities.

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Mechanism of Feed-in Tariffs (2/2)

• Current, only Solar PV tariff rates are set on date when

generating equipment installations are completed. Other

technologies have tariff rates set on the Power

Purchasing Agreement (PPA) signing date.

tariffs applied for 20 years

PPA being a very important credit for banks to

provide project financing

• BOE announces PV capacity quota every year. PV

systems > 50 kW are subject to a bidding procedure to

decide tariffs. Developers proposing higher discount

rates receive the priority to get the quota.

• The installed capacity of PV systems has been

increased by more than 60 times in 5 years after the

implementation of FIT.

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• Applied for 20 years to electricity from renewables (except PV) whose owner

signs PPA with power utility from 1 Jan. 2015 to 31 Dec. 2015

FIT for Renewables (2015)

* Exchange rate: USD 1 = NTD 31

Item Type Capacity (kW) period 1 period 2

PV Roof type

≧1 ~ <20 22.1397 21.5229

≧ 20 ~ < 100 18.5090 17.9871

≧ 100 ~ < 500 17.2990 16.8242

≧ 500 16.7532 16.3023

Ground type ≧1 15.7565 15.3294

Wind Power Onshore

≧ 1 ~ < 10 27.1197

≧ 10 8.7835 (with LVRT)

Offshore -- 18.5177

Hydropower Stream-Type -- 8.4961

Geothermal -- -- 15.9081

Biomass No biogas eqip. -- 8.4961

With biogas eqip. -- 10.9042

RDF -- -- 9.1097

Others -- -- 8.4961

Unit: US ¢/kWh

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Thousand Wind Turbines Project (1/2)

Goal : 5,200 MW developed by 2030

A. Onshore ：1,200 MW installed by 2020

B. Offshore： 4,000 MW installed by 2030

ᴏ Wind Power Generation Target

Year 2012 2013 2014 2015 2020 2025 2030

Onshore (MW)

571 614 637 737 1,200 1,200 1,200

(450 turbines)

Offshore (MW)

- - - - 520 2,000 4,000

(800 turbines)

Cumulative Installed

Capacity (MW)

571 614 637

(321 turbines) 737 1,720 3,200

5,200 (1,250

turbines)

Cap

acit

y (M

W)

Turb

ine

s

5,200MW

637MW

0

200

400

600

800

1.000

1.200

1.400

0

1.000

2.000

3.000

4.000

5.000

6.000 Turbines Cumulative Installed Capacity (MW)

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ᴏ Strategy －Develop on- shore prior to off-shore wind farms On-shore: develop areas with higher power generating potentials prior to 2015, then develop areas with less potential thereafter.

- Develop areas with higher power generating potentials prior to 2015 (estimated 800 MW)

- Develop areas with less potential thereafter (400 MW), with total installed capacity reaching 1.2

GW by 2020

Off-shore: develop among the shallow areas prior 2020 then develop in deep water offshore areas.

- Establish the first off-shore wind farm by 2016, and reach 350 MW installed capacity on shallow

off-shore areas (approximately 100 turbines) by 2020.

- Develop large wind-farms in areas possessing economic scalability between 2021-2030

(3,650 MW, or approximately 700 wind turbines in 10 years)

Short-term~2015:

Offshore Wind Power Demonstration Program

Promote Demonstration Incentive Program

Mid-term~2020

Develop Demonstration Offshore Wind Farms

Optimizer circumstances and infrastructure

Long-term~2030

Develop Large-scale Wind Farms

Establish local industry of marine construction and wind turbines

Thousand Wind Turbines Project (2/2)

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Demonstration Incentive Program for Offshore Wind

ᴏ Demonstration Wind Farms In the ocean of 5 m isobaths or deeper, with total capacity above 100 MW but not exceeding 200 MW.

ᴏ Demonstration Turbines 2 offshore wind power systems of single capacity above 3 MW

Awarded Demonstration Projects

Fuhai @Changhua • Capacity: 120 MW (30 turbines) • Distance from Shore: 8-12 km • Water Depth: 20-45 m

Formosa @Miaoli • Capacity: 128 MW (32 turbines) • Distance from Shore: 2-6 km • Water Depth: 15-35 m

TPC @Changhua • Capacity: approx.. 108 MW (22-36 turbines) • Distance from Shore: 5-8 km • Water Depth: 15-25 m

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Incentives for Renewable Energy

Mechanism of Feed-in Tariffs for the Electricity Generated by the Renewable Energy Power Generation Equipment

Regulations of Subsidizing Thermal Utilities of Renewable Energy

Regulations of Application to Be Exempt from or Pay by Stages of the Customs Duties of Renewable Energy Generation Equipments

Regulations of the Application and Approval of Subsidy of Electricity Generated by Renewable Energy

Regulations on Subsidies for Building Integrated Photovoltaic Generation Equipment Demonstration

MOEA Subsidy Directions for the Promotion of Photovoltaic Community

Incentive Regulations for Geothermal Generation Demonstration

Directions for Subsidizing of the Promotion of Biogas Generation Program by the Ministry of Economic Affairs

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Incentives for Renewable Energy (cont’d)

Regulations Governing Subsidizing of Demonstrated Small Wind Generation Systems

Regulations of Subsidies for Research Institutions Promoting Industrial Innovations and Research Development by Ministry of Economic Affairs

Enforcement Directions for Promotion of Industries Participating in Research and Development of Energy Technology, Ministry of Economic Affairs

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InvesTaiwan Service Center; TEL: 886-2-23112031; http://investtaiwan.nat.gov.tw/eng/main.jsp

Bureau of Energy, MOEA; TEL: 886-2-27721370; http://web3.moeaboe.gov.tw/ECW/english/home/English.aspx

Renewable Energy Project Office; TEL: 886-2-87720089; http://www.re.org.tw/Eng/index.aspx

Green Energy Industry Promotion Office; TEL: 886-2-87722252; http://www.taiwangreenenergy.org.tw

Thousand Wind Turbines Project Office; TEL: 886-2-87723415; http://www.twtpo.org.tw/eng/Home/

Million Rooftop PVs Program Office; TEL: 886-2-87733988; https://mrpv.org.tw/index.php

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