Taiwan moves toward opening renewable energy market

2016/10/24

A two-stage draft amendment to the Electricity Act aimed at opening Taiwan’s renewable energy market and putting in place related regulatory and management measures was approved Oct. 20 by the Executive Yuan.

During the first stage, the nation’s energy industry will transform into a decentralized, localized and community-based one characterized by a thriving green power production sector. The second stage, which is to be implemented step-by-step, will see renewable and traditional generation facilities selling electricity to public power utilities, and consumers selecting their providers.

Requiring state-owned Taiwan Power Co. to establish two separate business units—one for power generation and the other for delivery, distribution and sales—is another central plank in the legislation proposed by the Ministry of Economic Affairs. The amendment is set for review by the Legislative Yuan—Taiwan’s highest lawmaking body—before year-end.

Lin Chuan-neng, director-general of the MOEA’s Bureau of Energy, said liberalizing Taiwan’s renewable energy market is key to fostering the emergence of a viable green power industry. “The government will maintain this momentum by implementing policies spurring private participation and investment, as well as streamlining production and supply.”

According to Lin, the amendment is not expected to affect the rate for average electricity power consumption per household, currently calculated at 330 kilowatt-hour by Taipower.

The amendment is part of government efforts to increase renewable energy’s share of the national power production total from the current 4 percent to 25 percent by 2025. Two specialized offices have been set up to achieve this goal, one under the MOEA responsible for promoting solar energy and the other under the Executive Yuan tasked with reducing greenhouse gas emissions.

Taiwan is one of the few countries in the world to have written into law a target for reducing greenhouse gas emissions. Enacted last July, the Greenhouse Gas Reduction and Management Act includes the long-term goal of reducing emissions by at least 50 percent below 2005 levels by 2050.

This commitment will also help the government make Taiwan a nuclear-free nation and meet the essential elements of the Paris Agreement, which was concluded last December at the 21st session of the Conference of the Parties to the U.N. Framework Convention on Climate Change.

Taiwan is working to be included in the UNFCCC as it is an indispensable partner, has set an ambitious greenhouse gas reduction target, is ready and willing to contribute more to the conference and its participation is a matter of climate justice.

Source: Taiwan Today (http://taiwantoday.tw/ct.asp?xItem=248851&ctNode=2194&mp=9)