Renewable Energy Promotion Policies in Taiwan. Bureau of Energy Ministry of Economic Affairs

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1 Renewable Energy Promotion Policies in Taiwan Bureau of Energy Ministry of Economic Affairs October

2 Outline Current Development of Renewables in Taiwan Taiwan s New Renewable Energy Policy 2

3 Current Development of Renewables in Taiwan 3

4 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 MW in capacity. Tao-Yuan: 30 MW Chuntung, Penhu: 4.8 MW 4

5 Current Development of Renewables (2/3) PV: 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 5

6 Current Development of Renewables (3/3) Biomass power: MW Municipal Solid Waste Incineration: MW (25 plants) Biogas: 19.1 MW (4 landfills) Waste from Industries and Agriculture: 97 MW Solar Water Heaters 1.61 million m 2 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 6

7 Taiwan s New Renewable Energy Policy 7

8 Taiwan s New Energy Policy New Energy Policy announced: to Steadily Reduce Nuclear Dependency, Gradually Move Towards a Nuclear-free Homeland, and Create a Low-carbon Green Energy Environment Approval of the National Master Plan on Energy Conservation and Emission Reduction 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 8

9 Installation of Renewable Energy The installed capacity of renewable energy was 4,153.3 MW at the end of July Targeted renewable power generation capacity is GW by 2030, raised from GW (announced on 28 May 2015). Almost quadrupled compared to 2014 level Unit:MW Energy Source Solar PV 620 1,115 3,615 6,200 8,700 Wind On-shore ,200 1,200 1,200 Off-shore ,000 4,000 Hydro Power 2,081 2,089 2,100 2,150 2,200 Biomass Geothermal Total 4,079 4,697 8,303 12,513 17,250 Source: Bureau of Energy, Ministry of Economic Affairs, Taiwan 9

10 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. 10

11 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. 11

12 FIT for Renewables (2015) Applied for 20 years to electricity from renewables (except PV) whose owner signs PPA with power utility from 1 Jan to 31 Dec PV Unit: US /kwh Item Type Capacity (kw) period 1 period 2 1 ~ < Roof type 20 ~ < ~ < Ground type ~ < Onshore Wind Power (with LVRT) Offshore Hydropower Stream-Type Geothermal Biomass No biogas eqip With biogas eqip RDF Others * Exchange rate: USD 1 = NTD 31 12

13 Capacity (MW) Thousand Wind Turbines Project (1/2) Turbines ᴏ Wind Power Generation Target Goal : 5,200 MW developed by 2030 A. Onshore :1,200 MW installed by 2020 B. Offshore: 4,000 MW installed by Year Onshore (MW) Offshore (MW) Cumulative Installed Capacity (MW) Turbines ,200 1, , Cumulative Installed Capacity (MW) 637MW 637 (321 turbines) 737 1,720 3,200 5,200MW 1,200 (450 turbines) 4,000 (800 turbines) 5,200 (1,250 turbines)

14 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 Develop large wind-farms in areas possessing economic scalability between (3,650 MW, or approximately 700 wind turbines in 10 years) Short-term~2015: Thousand Wind Turbines Project (2/2) Offshore Wind Power Demonstration Program Promote Demonstration Incentive Program Mid-term~2020 Develop Demonstration Offshore Wind Farms Long-term~2030 Optimizer circumstances and infrastructure Develop Large-scale Wind Farms Establish local industry of marine construction and wind turbines 14

15 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 Capacity: 120 MW (30 turbines) Distance from Shore: 8-12 km Water Depth: m Capacity: 128 MW (32 turbines) Distance from Shore: 2-6 km Water Depth: m Capacity: approx MW (22-36 turbines) Distance from Shore: 5-8 km Water Depth: m 15

16 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 16

17 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 17

18 Contact Us InvesTaiwan Service Center; TEL: ; Bureau of Energy, MOEA; TEL: ; Renewable Energy Project Office; TEL: ; Green Energy Industry Promotion Office; TEL: ; Thousand Wind Turbines Project Office; TEL: ; Million Rooftop PVs Program Office; TEL: ; 18

19 Thank You for Your Attention! 19

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