1. Promotion of Renewable Energy in Taiwan
APEC EWG N&RE EXPERT GROUP 23rd MEETING
Promotion of Renewable Energy in Taiwan
Chen-Chung WU
Bureau Of Energy
Ministry Of Economic Affairs
NOV , 2004, NEW ZEALAND
2018/12/3

2. Background  Renewable energies are clean and can be harvested
domestically.
 It is particularly important for Taiwan for the
following reasons:
 Taiwan is heavily depended on importation of energy supply.(97%)
 Environmental concerns and global warming issues.
 Aid in the establishment of domestic new industry.
 Renewable energy can play a role to assist
government in the achievement of policy goals
for a secure,clean,and sustainable energy supply
system.

3.  Energy Supply Structure in Taiwan
 Annual increased by 6.3% during last two decades
 Limited indigenous supply, 97.7% importation
 Fossil energy supply amounted to 91%
121.2
MKLOE
1.4%
8.0%
7.3%
50.8%
32.5%
68.4
MKLOE
2.5%
15.0%
5.5%
35.5
MKLOE
53.8%
23.2%
3.5%
4.1%
13.3%
61.6%
17.5%
Dependency of
Importation： % % %
GDP (NT$) ： 2,855 billion ,348 billion ,000 billion

4. Policy and Promotion Strategies
 Major conclusions from a number of notable energy conferences
since 1998 that advise the Government energy policies emphasized
on the promotion of RE and regarded as Non-Regret policy :
 National Energy Conference(May 1998)
 National Economic Development Conference(January 2001)
 Sixth National Science and Tchnology Conference(January 2001)
 National Nuclear -free Homeland Conference (September 2003)
 Promotion Strategies Highlights
 Renewable Energy Promotion Program(since 2002)
 Establishment of inter-agency coordinating mechanism
 Providing Financial Incentive,subsidiary, and R&D program
 Legislating “Renewable Energy Development Act”(Draft)(since 2002)
 Electricity subsidiary,and ensuring reasonable profit.
 Tai-Power company’s Interim Power Purchase Measure
 Nuclear-Free Homeland Action Plan(since 2003)
Government spending NT$3 Billion annually for promoting the
development of clean energy and energy Conservation industries.
 Renewable energy application has been increased rapidly in recent
years. RE increased 13.9% from 2,233MW up to 2,544MW
(between 1999 and 2003).

5. Renewable Potentials & Opportunities (Distributed Electricity)
 Comprehensive evaluation on
renewable energy in Taiwan.
High isolation in most areas
(Solar Collectors, Solar PV)
Windy west coast areas (Wind Farm)
Geothermal Energy
Off shore islands
(Distributed Electricity)
Agricultural,Feedstock,
Municipal &Industrial wastes (RDF)
Small Hydro
 Technical Feasible
 Total Potential
 Electric Power: 6,500 MW
 Thermal Application : 1.6 MKLO

6. Annual installation of solar water heaters in Taiwan
 Solar Thermal System
 Taiwan is located in the subtropics, the solar isolation exceeds
3,000 Kcal per m2.
 Current status: 310 thousand Installed households (ratio of installed
household up to 4%)
 Potential: at least 1.5 million installed households(ratio of installed
household increasing from 4% to 22%)
Annual installation of solar water heaters in Taiwan
800
1,090
1,000
1,910
2,900
5,000
7,300
5,300
18,100
36,800
57,600
58,200
54,400
60,300
82,200
76,600
89,100
92,900
69,500
73,500
62,800
56,500
72,800
75,500
78,300
89,000
10000
20000
30000
40000
50000
60000
70000
80000
90000
100000
Installed Area (m 2 )
1978
1980
1982
1984
1986
1988
1990
1992
1994
1996
1998
2000
2002
Year
Diwan Collegze (Tainan)
solar thermal energy system for 450 person with 307.5m2

7.  Solar Photovoltaic System
 Current status: 56 demon. systems with total capacity of 440 kW.
Small scale application in remote area, educational or
demonstration purposes.
 Future plan (promoting PV by steps, based on the trend of PV’s cost ):
1. To promote innovative technology demon. system :
 school demonstration systems ( about 1,500 kW ).
 Solar City Project, integration with buildings (BIPV application 200~400kW).
2. To promote 10 thousand household application :
 Providing subsidiary, promoting the installation of PV system up to 50 MW.
3. To promote 300 thousand household application : to reach 1,000MW.
The Presidential Office (10.5 kW)
YEAR 2001
Whether station at the top of
Jade Mountain (10kW)
Technical College
in Southern Taiwan (10 kW)

8.  Solar City In Taiwan (2004-2007)
To integrate photovoltaic solar system with architecture and weave the beautiful city with technology and architecture design
Solar technology will imbed with urban design and reveal local characteristics in city entrance, architecture, main path and public space to create an exquisite solar city.
public space
c. public space(nodes)
landmarks
d. landmarks
Base on Kaven Lynch’s concept about city Image. The 5 elements are:
a. city entrance(edges)
city entrance
b. main path
path
e. architecture(districts)

9.  Wind Energy  Excellent wind power sites : most of the
Total installed（MW) 20 40 60 80
100
120
140
160
2001
2005
2010
2015
2020
Additional capacity(MW)
300
600
900
1200
1500
additional
total installed
Wind Energy Annual Installation Projections
 Excellent wind power sites : most of the
western coastlines and offshore islands
( more than 2,500 hrs of full - load
operation)
 Current status: 8.5 MW of installed capacity
,590MW of pre-installation
and another 401MW under
planning stage.
 Potential: 1,000 MW of Land- based Wind
Farm and 500 MW of Off-shore
Wind Farm.
50m wind speed in Taiwan
Potential
Total capacity of 1,500 MW
by 20220
On land
1,000 MW
Offshore
500 MW
Installed ：8.5 MW
Pre installation : MW
Planning : 401.4MW
installed
Pre installation
planning
0.6%
39.3%
60.1%

10. Biomass Applications and Potential
 Biomass Energy
 Power generation from municipal waste incinerators has reached 432 MW.
Utilization of biogas from landfill sites has been installed with a total
capacity of 22 MW.
There are other operations that convert waste to fuels, such as bagasse,
rice husk, black liquor, scrap tires, paper rejects, etc.
 RD&D projects
 Refuse-derived fuels (RDFs)
 Alternative transportation fuels
 a demonstration program of using bio-diesel on city garbage trucks
 a demonstration plant converting recycled cooking oils into bio-diesel
 Similar to OECD nations, it is estimated that biomass applications will
continue to be as the major contributor of renewable energy utilization
for Taiwan.
Biomass Applications and Potential
* Power generation from bagasse, rice husk, black liquor, scrap tires, paper rejects, etc.

11.  Hydro Power  Current status : 1,900 MW of hydropower developed.
 Potential : The remaining sites are mostly located in the remote
areas or in the nature conservation areas.
They are with limited capacity and economic feasibility
(small hydro with the potential of 300MW).

12. Main geothermal sites in northern Taiwan
 Geothermal Energy
 Taiwan lies on major geological fault-lines along
the Pacific Rim, and has abundant geothermal
resources. A comprehensive exploration estimates
the total potential at up to 1,000MW. However, most
of the resources located in remote areas and that
makes them difficult to develop.
 Economically and technically feasible potential will
be about 150 MW.
 Chin-Suei geothermal pilot plant had been
promoted for years. The project aims at the
integration of geothermal energy usage with a
recreational facilities.
Main geothermal sites in northern Taiwan
Geothermal Power Plant
Recreational facilities
Chin-Suei multipurpose geothermal BOT Project

13. Key Tasks for Promoting Renewable Energy
 Main Impediments: non-competitive cost and institutional barriers
 Renewable energy is still more expensive energy supply option that requires
government support.
 Institutional barriers (e.g. land acquisition and permission procedures).
 The key tasks undertaken by the government will be aimed at
making renewable energy investment more favorable and removing
of the institutional barriers.
 To implement “ Renewable Energy Promotion Program”
 To seek rapid passage of the “Renewable Energy Development Act”
 To implement Interim Power Purchase Measure
 To Implement the Nuclear-free Homeland Action Plans

14.  Strategies for Renewable Energy Investment more Favorable
2.0
1.5
1.0
0.5
Long-term trend of generation cost
NT$/kWh
Renewables
Traditional Energies
1.27
External Costs
> 1.7
Averaged
Long-term trend
Scale-UP and Technological advancement PV
15-24
Near & Medium terms Government Actions:
 Cost reduction through subsidy
 Stipulated by the law Z
2.0
1.5
1.0
0.5 Z
High cost or new technology
Demonstration Y Y
Electricity subside
NT$/kWh X X
Install
subside
Renewables X
Traditional Energies
1US$ 33NT$

15.  Renewable Energy Promotion Program
 Providing economic and fiscal incentives through subsidies, grants or
tax credit.
 Conducting government-funded R&D on renewable energy technologies.
 Establishment of inter-agency coordinating mechanism.
Current Incentives for Renewable Energy Promotion

16.  Renewable Energy Development Act (Draft)
 The most important action to be taken by the government.
 A fixed reimbursement system for subsidies
 aimed at making renewable energy investment more favorable
Key Elements

17.  Tai-Power Co.’s Interim Power Purchase Program
 An interim measure enforced in November 2003 to promote
green energy before the Renewable Energy Development Act
to be cleared by the Congress.
 Tai-power is requested to purchase a quota of 600 MW RE.
 Based on the competitive mechanism, all applications shall be
evaluated by MOEA twice a year.
For those applications approved, Tai-power Co. agrees to pay
a fixed rate of NT$2/kWh for 15 years.
 After the period mentioned above, the PPA can be renegotiated
till as long as the lifetime of the renewable energy power
generators.

18.  Action Plans for Nuclear - free Homeland
 The conclusion of the “Nuclear-free Homeland Conference”
held in June 2003.
 The Cabinet’s Committee for the establishment of a Nuclear-free
Homeland emphasizes on renewable energy to be as an important
role in the creation of a nuclear - free nation.
 Harmonization of various related policies of environment, construction,
industry development , and energy .
 Integration of resources between agencies.
 Earmarking three billion NT dollars (about 90 million US$) budget every year
commencing from 2004.
 Promotion of industry development (opportunity & niche existing in Taiwan,
e,g, PV).
Promoting PV Industry
Up stream
Mid stream
Down stream
Industry
Construction
Industry
Silicon
&
Materials
Wafer
Solar Cell
PV Module
PV System
&
Installation
Comp.
Sino-American Silicon Products
Sinonar,Motech,
Eton
Photonic Energy Semiconductor
Ever Bright
Taiwan Sun Energy
China Electric
Sysgration, Phoenixtec,Fortune, BP, Motech, Sinonar, Uniergy Engineering, China Electric, Top Tower, Photonic Energy,,Semiconductor, Ever Bright, Chung-Hsin,Lighwave Solar Power,, Seki-Show, Solar-i

19. Future Prospect  National goal : Installation capacity of 6,500 MW.
 High density of RE development, exceeding180 kW per kM2.
 applying updated technologies to harness domestic renewable energy

20. Concluding Remarks
1. A clear and definite target for RE development has been
committed, with good progress to date.
2. To seek rapid passage of “Renewable Energy Development
Act” is among the most important actions taken by the
government. The promotion of renewable energy would
require inter-agency coordination mechanism to overcome
multiple non-economic barriers.
3. The promotion of renewable energy is regarded as a
non-regret energy policy. Taiwan will increase the use of
renewable energy in an attempt to achieve a wide range of
policy goals of energy security, environmental protection,
and industry development.