Policy for Promoting Renewable Energy
in Taiwan
經濟部能源局
Bureau of Energy
Taiwan
Policy for Promoting Renewable Energy &
Current Status in Taiwan
Bureau of Energy
Ministry of Economic Affairs, Taiwan
March 2013
All rights reserved.
0
經濟部能源局
Bureau of Energy
Policy for Promoting Renewable Energy
in Taiwan
Outline
• Renewable Energy targets under the “New Energy Policy
Framework”
• Current Development of Renewables
Taiwan
• Renewable Energy Development Act
• Million Solar Rooftop PVs project
• Thousand Wind Turbines Project
• Off-Shore Wind Power Demonstration Program
• Concluding Remarks
All rights reserved.
1
經濟部能源局
Bureau of Energy
Policy for Promoting Renewable Energy
in Taiwan
RE targets under the “New Energy Policy Framework”
I. Target Expansion and Overall Development Strategy
Due to the geographical environment and natural resource limitations, The
renewable energy with matured technology and low power generation costs
will have priority in government development policy. Moreover, the
authorities will encourage the industry players to consolidate their R&D and
manufacturing capabilities. Thus, Taiwan can be one of the Green Power
Supplying countries.
Taiwan
II. Target of the Promotion of Renewable Energy
According to the “Renewable Energy Development Act”, the target of
renewable energy installation shall increase up to 6,500~10,000 MW for 20
years. To correspond with the upcoming goals for GHG reduction, energy
diversification, and renewable energy expansion, the renewable energy
installation target is revised to reach 9,952MW by 2025, and 12,502MW
by 2030. In other words, more aggressive targets are set for developing
renewable energy in Taiwan.
All rights reserved.
2
Policy for Promoting Renewable Energy
in Taiwan
經濟部能源局
Bureau of Energy
Aggressive Installation capacity Targets (MW)
To prompt the solar PV and off-shore wind power, Taiwan also approved the
“Million Solar Rooftop PVs” and “Thousand Wind Turbines” promotion
projects. The goals will be to reach the installing of 3,100 MW of PV systems
and 1,000 wind turbines ( including 450 on-shore and 600 off-shore wind
turbines) by 2030.
Energy Source
2012
2015
2020
2025
2030
On-shore Wind
621
866
1,200
1,200
1,200
Off-shore Wind
0
15
600
1,800
3,000
2,060
2,052
2,112
2,502
2,502
201
492
1,020
2,500
3,100
Geothermal
0
4
66
150
200
Biogas
9
29
29
31
31
792
848
925
1,369
1,369
Ocean Energy
0
1
30
200
600
H2&Fuel Cells
0
7
60
200
500
3,683
4,314
6,042
9,952
12,502
7.7%
10.0%
10.6%
14.8%
16.1%
Hydro Power
Taiwan
Solar PV
W aste to Energy
Total
Percentage of
installed capacity
All rights reserved.
3
Policy for Promoting Renewable Energy
in Taiwan
經濟部能源局
Bureau of Energy
Current Development of Renewables (1/3)
Conventional Hydropower
• Total hydro power capacity of 2,081.3 MW, of which the Public utilities
(Taipower) accounted for 98% of large hydro power plants (2,042.2 MW),
privately owned 39.1 MW only
Wind Power
Taiwan
• Total wind power capacity of 621.1 MW, 314 wind turbines being erected.
All rights reserved.
Tao-Yuan: 30 MW
Chuntung, Penhu: 4.8 MW
4
Policy for Promoting Renewable Energy
in Taiwan
經濟部能源局
Bureau of Energy
Current Development of Renewables (2/3)
PV: 206.4 MWp 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.
• Completed prior to RES Act: 11 MW
206.4 MWp
• Commissioned after RES Act: 185 MW
Taiwan
• Installed by Taiwan Power Company: 10.4 MW
BIPV demonstration system
All rights reserved.
The Main Stadium of The World
Games 2009 Kaohsiung: 1 MW
5
經濟部能源局
Bureau of Energy
Policy for Promoting Renewable Energy
in Taiwan
Current Development of Renewables (3/3)
Biomass power: 801.1 MW
•
•
•
•
Municipal Solid Waste Incineration: 624.4 MW (25 plants)
Biogas: 9.1 MW (4 landfills)
Waste from Industries and Agriculture: 167.5 MW
Annual Generation: 4.7 TWh
Taiwan
Solar Water Heaters
• 226 million m2 of heat collectors installed, effective households penetration
rate3.63% (around 300 thousand households)
• Ranked No. 5 globally for installed density (land area based)
• Annual Energy Production: 153 million litres oil equivalent
Biofuels
• Biodiesel: Mandatory B1 since July 2008, B2 on June 2010
• Bioethanol: E3 Gasohol Programme in Taipei and Kaohsiung Cities
• Annual Consumption: 100 thousand kilolitres of biodiesel, over 4 thousand
kilolitres of bioethanol.
All rights reserved.
6
經濟部能源局
Bureau of Energy
Policy for Promoting Renewable Energy
in Taiwan
Renewable Energy Development Act in Taiwan
Promulgated on July 8, 2009
Taiwan
The 23 Provisions of the Renewable Energy Development
All rights reserved.
Development
Grid Connection
Target
And
Fund
Power
Establishment
Renewable
Purchasing
Energy
Obligations
Development
Act
Feed-in
Demonstration
Tariff
Grants
Rates
Land-use
Limitations
7
經濟部能源局
Bureau of Energy
Target
Tariff Payment
Duration
Targeted
Technologies
Power Purchase
Tariff Setting
Method
Taiwan
Grants for Thermal
Utilization
Financing
Scheme
Supplementary
Measures
All rights reserved.
An Overview of
Policy for Promoting Renewable Energy
in Taiwan
the Act
Increase of renewable energy power capacity by 6.5 GW to 10 GW
20 years
Solar energy, biomass energy, geothermal energy, ocean power, wind
power, hydropower, waste to energy, excluding non-river-stream based
hydro power and direct incinerating technologies
Mandatory grid connection and power-purchasing obligations
1. The Tariff Committee with 17~21 members is consisted of related
Ministries, scholars and experts, and other groups.
2. Tariffs are reviewed and adjusted by the Committee annually.
3. The Committee decides tariffs for different renewables categories.
Solar water heating, biomass, and other renewable thermal
technologies
1.Financed by Renewable Energy Fund with revenues collected from
power generators using fossil fuels and nuclear energy
2.The government allocating extra funding from the national budget
3.Other funding sources including the Petroleum Fund and agricultural
development funds
1. Capital grants and Demonstration grants
2. Exemptions of import tax, various licensing and land-use
requirements
3. Dispute mediation mechanism
8
Policy for Promoting Renewable Energy
in Taiwan
經濟部能源局
Bureau of Energy
Renewable Energy Development Fund
․Budget Source
Power utilities and operators of self-usage power generation
equipments that reach a certain level of capacity shall pay,
according to the non-renewable energy portion in ones’
total power generation, a certain amount annually to the Fund
Taiwan
․Usage
All rights reserved.
Subsidies to renewable electricity price, renewable energy
equipment and renewable energy demonstration, and the
promotion of application
9
Policy for Promoting Renewable Energy
in Taiwan
經濟部能源局
Bureau of Energy
Mechanism of RE Development Fund
Income based on expected expenses to balance revenue and expenditure
Taipower
Power
users
Added
Purchase of elec.
Traditional Renewable
electricity electricity
Subsidies to
renewable
electricity price
Taiwan
Payment
All rights reserved.
Indepen- Payment
dent Power
Producers,
IPPs
Generating
electricity
using nonrenewables
Fund
Installer of
renewable
energy power
generation
equipment
Subsidies to the expense of
purchasing of renewable
energy equipment
Payment
Installers of self-usage
power generation
equipment that reaches a
certain level of capacity
Flow of Elec.
Flow of Fund
10
經濟部能源局
Bureau of Energy
Policy for Promoting Renewable Energy
in Taiwan
Mechanism of Feed-in tariffs
• Tariffs and formula should be reviewed annually by referring to
technical advancement, cost variation, goal achievement status,
etc. no degression system in place
Taiwan
• Tariffs shall not be lower than the average cost for fossil-fired
power of domestic power utilities.
• 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.
applied for 20 years
• BOE announces PV capacity quota every year. PV systems > 30
kW are subject to a bidding procedure to decide tariffs.
Developers proposing higher discount rates get the priority to get
the quota.
All rights reserved.
11
經濟部能源局
Bureau of Energy
FIT for
Policy for Promoting Renewable Energy
in Taiwan
Renewables (2013)
• Applied for 20 years to electricity from renewables (except PV) whose owner signs PPA with
power utility from 1 Jan. 2013 to 31 Dec. 2013
Item
Type
Roof type
PV
Ground type
Wind Power
Capacity
(kW)
Onshore
2013 Tariff Rates
(US¢/kWh)
2012 Tariff Rates
(US¢/kWh)
Variation
period 1
period 2
period 1
period 2
period 1
period 2
≧1 ~ <10
28.9555
28.2193
32.6362
31.9000
-11.28%
-11.54%
≧ 10 ~ < 100
26.0110
25.2748
29.4462
28.7100
-11.67%
-11.97%
≧ 100 ~ < 500
24.5386
23.8024
28.2193
27.4831
-13.04%
-13.39%
≧ 500
21.8393
20.6124
25.2748
24.7838
-13.59%
-16.83%
≧1
20.6124
19.3855
23.8024
23.3117
-13.40%
-16.84%
≧ 1 ~ < 10
≧ 10
25.3662
25.3662
0.00%
9.0545 (with LVRT)
9.1128 (with LVRT)
-0.64%
--
19.1814
19.1814
0.00%
Hydropower
Stream-Type
--
8.5007
8.0352
5.79%
Geothermal
--
--
16.5652
16.5652
0.00%
No biogas eqip.
--
8.5007
8.0352
5.79%
With biogas eqip.
--
9.6600
9.3086
3.77%
RDF
--
--
9.7379
9.7379
0.00%
Others
--
--
8.5007
8.0352
5.79%
Taiwan
Offshore
Biomass
All rights reserved.
* Exchange rate: USD 1 = NTD 29
12
Policy for Promoting Renewable Energy
in Taiwan
經濟部能源局
Bureau of Energy
RES Type
Differentiation
FIT Variations in Recent Years
Brackets
(kW)
1~<10
Solar PV
Roof
Mounted
2013 Tariff Rates
(NTD/kWh)
2011 Tariff
Rates
(NTD/kWh)
period 1
period 2
period 1
period 2
11.1883*
(equivalent to 14.6030
without receiving
capital grants)
10.3185
9.4645
9.2510
8.3971
8.1836
9.1799
8.5394
8.3259
7.5432
7.3297
8.8241
8.1836
7.9701
7.1162
6.9027
7.9701
7.3297
7.1873
6.3334
5.9776
7.3297
6.9027
6.7604
5.9776
5.6218
10~<100
12.9722
100~<500
≧500
Single
Bracket
Ground
2012 Tariff Rates
(NTD/kWh)
2010 Tariff Rates
(NTD/kWh)
11.1190
1~<10
7.2714
7.3562
7.3562
7.3562
≧10**
2.3834
2.6574
2.6427 (with LVRT)
2.6258 (with LVRT)
Off-shore
-
4.1982
5.5626
5.5626
5.5626
Stream
Hydro
--
Single
Bracket
2.0615
2.1821
2.3302
2.4652
Geothermal
--
Single
Bracket
5.1838
4.8039
4.8039
4.8039
On-shore
Taiwan
Wind
Biomass
--
Single
Bracket
2.0615
2.1821
anaerobic
digestion
without
anaerobic
digestion
anaerobic
digestion
without
anaerobic
digestion
2.6995
2.3302
2.8014
2.4652
Waste
--
Single
Bracket
2.0879
2.6875
2.8240
2.8240
Others
--
Single
Bracket
2.0615
2.1821
2.3302
2.4652
All rights reserved.
* 1 kW~10 kW Solar PV Installations in 2010 were qualified for 50k NTD/KW Capital Grant, which was terminated in 2011.
** Tariffs for those without LVRT installed are NTD 2.6138/ kWh in 2011, NTD 2.5971/kWh in 2012 and NTD 2.5924/kWh in 2013.
13
經濟部能源局
Bureau of Energy
Million Solar Rooftop
Policy for Promoting Renewable Energy
in Taiwan
PVs project (1/2)
I. Solar Energy Potential
Goal : 3,100 MW developed by 2030
A. Roof-top (3,000 MW)
B. Ground (100 MW)
Constrained by agricultural regulations (EPA released in 2008.12), considering
contaminated soil a 60% building coverage rate, the installed capacity could reach
100MW.
II. Strategy－
－First slow then fast/ incentivizing roof-tops prior to ground
installations
Accumulated Capacity (MW)
Taiwan
The Feed-in Tariff as a strategy to achieve annual targets for roof-top and ground
installations
3,500
2021,200 MW installed，followed by
annual increase of 50 MW/yr；
Polluted agricultural land open for
new installations
3,000
2,500
2,000
Target Achieved
2016,100 MW，followed by
annual increase of 10 MW/yr
1,500
1,000
2011,70 MW，followed by
annual increase by 5 MW/yr
500
14
0
2000
All rights reserved.
2008
2011
2015
Year
2020
2025
14 2030
14
經濟部能源局
Bureau of Energy
Million Solar Rooftop
Policy for Promoting Renewable Energy
in Taiwan
PVs project (2/2)
• Encouraging participation from local governments
Except for FIT, some local governments (e.g. Kaohsiung City) granting extra capital
subsidies
Encouraging public buildings and constructions equipped with PV
BOE considering the provision of subsidies to local governments to encouraging
proposals for promotion programs
BOE assisting local governments on Solar Roof-top Program and Solar Community
Program to facilitate public participation
Taiwan
• Establishment of PV-ESCO mechanism
Encouraging banks to participate in project financing and to provide soft loans to PVESCO players
Capacity of projects required to participate in bidding process considered to be raised
from 10 kW to 30 kW to encourage PV-ESCO
All rights reserved.
15
Policy for Promoting Renewable Energy
in Taiwan
經濟部能源局
Bureau of Energy
Thousand Wind Turbines Project
I. Wind Power Generation Potentials
A. On-shore：
：Potential ~ 9,000 MW
1,200 MW installed by 2020
B. Off-shore：
：Potential ~ 48,000 MW
3,000 MW installed by 2030
II. Strategy －Develop on- shore prior to off-shore wind farms
Taiwan
A. On-shore：
：develop areas with higher power generating potentials
prior to 2015, then develop areas with less potential thereafter.
Develop 564 MW in the initial phase,and complete another 270 MW by
2015,which amounts to a total of 800 MW；for areas with less potential,
develop 400 MW following the years after 2015. 1,200 MW on-shore wind
installed capacity will be reached by 2020.
B. Off-shore：
：develop among the shallow areas prior 2020 then develop
in deep water off-shore areas.
All rights reserved.
• Establish the first off-shore wind farm by 2015, and reach 600 MW installed
capacity on shallow off-shore areas (approximately 120 turbines) by 2020.
• Develop large wind-farms in areas possessing economic scalability between
2021-2030 (reaching 2,400 MW, which is approximately 480 wind turbines in
10 years)
16
經濟部能源局
Bureau of Energy
Policy for Promoting Renewable Energy
in Taiwan
Off-Shore Wind Power Demonstration Program
Offshore Wind Potential
1.The development potential of offshore
wind power is estimated more than 15
GW with the market incentive and large
scale development opportunity.
線
中
海
台
Taiwan
Water deep 5-20 m (shallow sea)
About 177,920 hectare
About 9 GW in potential
• 1.2 GW exploitable (13% development)
域
海
濟
經
浬
海
2
1
Water deep 20-50 m (deep sea)
About 654,700 hectare
About 48 GW in potential
• 6.2 GW developable (13% development)
Water deep 50-100 m (deeper sea)
About 1,195,400 hectare
About 90 GW in potential
• 9 GW developable (10% development)
※ The wind power device of 3 MW is estimated by 4Dx10D wind farm within the boundary of
12 nm territorial sea (D: the diameter of the blade 100 m).
All rights reserved.
Source: Green Energy & Environment
Research Lab./ITRI (Apr. 2011)
17
經濟部能源局
Bureau of Energy
Policy for Promoting Renewable Energy
in Taiwan
Incentive amount
The incentives include “demonstration incentive” and “development incentive”.
(1)Demonstration incentive:
• The upper limit: shall not exceed 50% of the total cost of demonstration
device set up.
• To avoid double rewards, the subsidy of this part must be returned by
receiving lower FIT until the subsidy is totally returned.
Taiwan
(2)Development incentive:
• The limit is NT$ 250 million. This part of subsidy is in full reward
and won’t be returned. However the technical and cost information
shall be put into public as future reference for the review of FIT.
All rights reserved.
18
經濟部能源局
Bureau of Energy
Policy for Promoting Renewable Energy
in Taiwan
Demonstration wind farm: in the ocean of 5 m isobaths or deeper, with total
capacity above 100 MW but not exceeding 200 MW.
Demonstration devices: 2 offshore wind power systems of single capacity
above 3 MW
Complete 1 offshore meteorological observation tower and the application
of ecological environmental investigation; complete basic, structural,
parallel construction test, business operation, and maintenance.
Taiwan
Demonstration wind farm: depth ≧ 5 m；
；total scale ≧ 100 MW and ≦200 MW
ecological investigation and
environmental evaluation
Offshore meteorological observation tower: depth ≧ 10 m；
；height ≧ 75 m
All rights reserved.
Demonstration devices
2 devices ≧ 3 MW
19
經濟部能源局
Bureau of Energy
Policy for Promoting Renewable Energy
in Taiwan
Concluding Remarks
• The promulgation of Renewable Energy Development Act and
related regulations has paved the way for a sustainable longterm development of renewables in Taiwan.
Taiwan
• Various kinds of incentives have been issued to encourage the
investment in renewables in Taiwan.
• The development of renewable energy is expected to be
prosperous in Taiwan.
• Taiwan’s government will devote itself for the continuous
growth of renewable energy.
All rights reserved.
20
Taiwan
經濟部能源局
Bureau of Energy
All rights reserved.
Policy for Promoting Renewable Energy
in Taiwan
Thank you for your attention
21