MOEA

Vol.20-2 Dec.2019 Sustainable lndustrial Development Newsletter in Responding to Energy Transition

Special Report Editorial Opinion 4 ’s Green Energy Policy Promotion and The passed the “Green Energy Industrial Transformation Opportunities Industry Promotion Plan” in 2016 to enhance Sustainable Industries in Taiwan the energy self-sufficiency and accelerate the development of the industry. The 11 How Can the Nation’s Industries Smoothly Executive Yuan also plans to implement the Forward- Implement “Green Energy Transformation”? looking Infrastructure Development Program - 17 Development of Renewable Energy Certification Green Infrastructure from 2017 to 2021 to improve System in Taiwan the development of the green energy industry, 19 The Promotion of Shalun Smart Green Energy including , solar power, and Science City wind power based on the objectives of energy safety, 21 Development Opportunities for Emerging environmental , and . Industries under the Decentralized Green Power Through the advancement of green infrastructure Framework and technical certification, Taiwan will become an important base for the development of the green 23 The Development of Taiwan’s Offshore Wind Power Industry energy industry in Asia. Focusing on the Industry’s Response to New Energy Current Affairs Structure, the journal invites domestic officials and experts in the energy industry to discuss the current 26 MOEA Attends to Demonstration Wind Farm development and challenges of Taiwan’s green Development to Achieve the 2020 Target of energy; experts are also invited to share the industry’s Offshore Wind response to the green energy transformation in the 28 Promotion of Solar Energy hope of enhancing the future competitiveness of the 30 Four-year Wind Power Promotion Plan domestic industry.

Special Report Industry in Responding to Energy Transition

Taiwan’s Green Energy Policy Promotion and Industrial Transformation Opportunities

I-Lin Chen Deputy CEO, Green Energy Industry Promotion Center, MoEA

I. The definition of Taiwan's green energy policy

The "Renewable Energy Development Act" in Taiwan was amended in April 2019. It is set to achieve the goal of "renewable energy generation accounting for 20% of the total amount of electricity and the installed capacity of 27 GW" by 2025, with solar photovoltaic and offshore wind power as the main energy sources; in addition, energy storage, energy- saving and intelligent systems are integrated to improve the power supply stability of renewable energy grid connection. The target installed capacity of solar photovoltaic is 20 GW (14 GW for ground-mounted type and 6 GW for rooftop type), and the target installed capacity of wind power is 6.9 GW (1.2 GW onshore and 5.7 GW offshore 1). Based on the domestic demand, the goal is to attract large-scale investments and increase employment, further boosting the industrial development and transformation.

1 The capacity of 5.7GW including 0.2GW demonstration, 3.8GW selection and 1.7 GW bidding wind farm

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Energy Transition Renewable energy generation to 20% by 2025

Solar Photovoltaic Wind power Energy Saving Smart Grid and Smart Meter

In 2025 In 2025 2017-2025 In 2025 ground-mounted type onshore 1.2 GW Improving energy intensity Enhancing the stability of Green Energy 14 GW + by 2.4% per year renewable energy Promotion + offshore 5.7 GW Improving electricity intensity Enhancing the quality of roof type 6 GW by 2% per year electricity supply Urging customers to save 2017-2020 energy Cumulative electricity saving 4.469 billion kWh Reducing electricity demand Installation of 3 million Ground-Mounted smart meters Promotion Project 838.2 MW by 2024 Industrial Parks Solar Expansion Project Industrial Green Energy on Energy Saving Target Development Every Roof Project and Roadmap Solar Photovoltaic Wind Power New Electricity Saving General Planning for 2-Year-Plan 4-Year-Plan Initiative Smart Grid

Technological Program + Demonstration Verification + Shalun Smart Green Energy Science City

Generating Energy Energy System Technological Energy Storage Saving Integration Supplying green Increasing Helping power Creating energy electricity storage saving jobs Increasing the flexibility Filling the gap of Increasing energy Increasing penetration of intermittent electricity efficiency rate of renewables Driving the promotion of Reducing electricity Reducing the growth of Balancing electricity green energy industry demand during peak electricity demand demand and supply periods

Figure 1: The definition of the green energy technology industry innovation program

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II. Why should we promote green energy?

The development of green energy has many advantages, such as environmental sustainability and resistance to climate change and resource depletion. More importantly, given 97% of Taiwan's energy sources are imported, green power does not rely on any imported fuels, which also improves energy .

Nowadays, many enterprises, such as Google, Apple, and Microsoft, are proposing a target of 100% renewable energy and demanding their suppliers to comply. As Taiwan is an export-oriented country, many manufacturers in the are part of the supply chain of international technology giants. As the "green supply chain" becomes more and more demanding, early development of renewable energy would be the solution to the increasing demand of renewable energy from manufacturers. Furthermore, developing renewable energy not only can promote scientific research and development, but also can cultivate new industries or accelerate the upgrading of existing industries and create local employment and investment opportunities.

III. Why solar photovoltaic and offshore wind power?

Because of the advantages in developing solar photovoltaic and offshore wind power in Taiwan, these have become the two main renewable resources. Taiwan is located in the subtropical zone, which results in abundant sunlight and long sunshine hours. The power generation hours per kilowatt can reach approximately 1,250 hours per year. The Southern region, especially, has even higher-quality conditions to develop solar photovoltaic.

Taiwan Strait is located in-between the Central Mountain Range and the Wuyi Range, which creates the “Valley Effect” with strong winds. Taiwan Strait is rated as the best wind resource region in the world by the marine 4C Offshore. In addition, the average water depth of the West Coast is less than 60 meters, which makes it a relatively mature area with advantages to develop offshore wind power.

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IV. How to implement industrial transformation?

1. Solar photovoltaic In the solar photovoltaic industry chain, Taiwan mainly focuses on solar cell , accounting for 45% of the total value. Taiwan’s solar cells are mainly exported, but they are currently facing international price cut competition. Although the industry is in a bottleneck, it also provides opportunities for the industry to upgrade and transform.

In order to improve the domestic solar photovoltaic industry chain and increase the economic benefits of the industry, the government has proposed a number of measures and strategies to help build a complete local industrial chain. The plan expands the domestic demand market through establishing 20GW Photovoltaics, and releasing large- scale domestic cases as a training field and to aid large-scale system technology, fostering international teams. In addition to investing in power plant development, Taiwan also encourages through corporate consolidation to enhance competitiveness.

The government also lowered the tax on materials for some modules and exempted tariffs to reduce the cost of purchasing. At the moment, the solar cell factory has successfully promoted the investment in the downstream module industry amounting to 2.135 billion.

Since 2019, the government has implemented the "MIT Smile Product Mark" certification for domestic solar cells. Combined with the voluntary product verification with high-performance modules, and the addition of the bulk purchase rate to strengthen the self-made rate and market share of the national products.

Currently, Taiwan has invested nearly 1GW solar module in 2018; Neo Energy Safety Energy Corp, Gintech Energy Corporation and Solartech Energy Corp the three solar plants have been approved by the National Development Fund and merged to form the "Joint Renewable Energy Company". Gradually expanding module production and enhance industrial competitiveness.

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It is estimated that by 2025, the total investment will be 1.2 trillion, and the annual output value will be 340 billion, and the cumulative number of job creations will reach 100,000.

2. Offshore wind power The offshore wind power industry is regional in nature, and its components are heavy and bulky. Importing from abroad is not in line with industrial benefits. Besides the innate environmental advantages, considering the development of Asia is still in its infancy, Taiwan can take the advantage of time to become the industrial hub in Asia-Pacific. That is the main reason Taiwanese government is developing the offshore wind industry. In the future, products and services can be further exported.

Offshore wind power spans many industrial fields and can be divided into four major systems: wind turbines, underwater foundations, electrical utility, and marine , to build local offshore wind power system. In addition to the upgrading and transformation of current industries, local offshore wind power industry can also facilitate inspection and verification to be promoted, including new opportunities for finance, legal affairs and consultants.

The government supports the local industry through the 5.5GW domestic demand market, and introduces foreign investors with capital, technology and capabilities to encourage them to make joint ventures or technology transfer with domestic players to form a strategic alliance. When local manufacturers cooperate with foreign companies to accumulate performance and technology and enter their supply chain system, they will have opportunities and benefits for export. At the present, Taiwan has formed a Wind Team and a Marine Team led by China Steel Corporation and CSBC, and they have formed alliances with foreign companies in the system and marine engineering integration industry.

Taiwan completed the 3.8GW selection and 1.7GW bidding operation in 2018. Several foreign developers, as well as three local developers Swancor, Taiwan Power Company, and China Steel Corporation, obtained development qualifications and successively obtained licenses to purchase or sell electricity. In the four major systems of the supply chain, the companies have achieved considerable results:

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(1) Wind Turbine: It has attracted well-known international wind turbine manufacturers Siemens Gamesa and MHI Vestas. It is expected to set up a core technology nacelle assembly plant in Taiwan and set up an Asia-Pacific production base. More than 27 local companies will enter the supply system.

(2) Underwater Foundations: Two teams of China Steel Corporation and Century Iron & Steel Industrial. have set up factories in Kaohsiung Xingda Port and Port respectively. It is estimated that more than 14 local companies will enter the supply system.

(3) Marine Engineering: In addition to investing in the preliminary investigation, operation and maintenance support vessels, the domestic construction workers will form two joint ventures between the CSBC and the Belgian GeoSea; Hwa Chi construction and the Dutch Boskalis. It is expected to cooperate with 35 local companies. The industry will jointly undertake the development and construction of the wind farm.

(4) Electrical Facilities: Currently, many manufacturers have received orders for wind farm power facilities.

By 2025, it is estimated that the total investment will be 1 trillion, the manufacturing output value will be more than 600 billion, plus the next 20 years of operation and maintenance output value of more than 600 billion, totaling 1.2 trillion, and 20,000 high- paying green collar job opportunities.

V. Conclusion

Through the main force of Taiwan's green energy: the promotion of solar photovoltaic and offshore wind power will not only promote 2 trillion in investment, bring lots of green collar employment, with added value and strategic position in the Asia-Pacific market, but is also an opportunity for development that cannot be delayed. It is hoped that through the green energy policy and strategy, Taiwan will be promoted to a green, low-carbon island.

9 Sustainable Industries in Taiwan Sustainable Industries in Taiwan

How Can the Nation’s Industries Smoothly Implement “Green Energy Transformation”?

King-min Wang Research Fellow, Chung-Hua Institution for Economic Research

Jong-shun Chen Assistant Research Fellow, Chung-Hua Institution for Economic Research

I. Preface

To meet the nuclear-free homeland and 20% renewable generation mix targets by 2025, the government has successively completed amendments to “The Electricity Act” and the “Renewable Energy Development Act” in order to achieve the “Green-go First Deregulation.” But the results have not been as good as anticipated. In light of the gap between reality and expectations, the government has stipulated in Article 12 of the newly amended Renewable Energy Development Act that major power consumers must bear additional renewable energy obligations. However, is the current green electricity market system complete? Is the power quality guaranteed? How is green power purchased? How do we share the relevant costs? These are all urgent problems that must be resolved by major industry players and the government’s green energy transformation efforts.

II. Relevant Discussions on Article 12 of the Renewable Energy Development Act

Article 12 provided that the major industrial enterprises have the following four law- abiding models as follows:

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1. Set up equipment for renewable energy generation or energy storage at power facilities.This appears to be the simplest method, but it is subject to restrictions such as plant configurations, surrounding open spaces, and the operating environments; and the equipment is not in the most efficient power generation state. Moreover, if the subsequent subsections of the law do not restrict the proportion of self- electricity generation and self-use, it is expected that the renewable energy generated by most major power consumers will have to be sold to Taipower by means of subsidized guaranteed purchase price. The cost will ultimately be borne by other users.

2. Set up equipment for renewable energy generation or energy storage at suitable facilities. Moving the relevant renewable energy facilities to other locations can indeed optimize power generation efficiency, but it also raises issues related to grid transmission and power . Due to the need to go through the wheeling and direct supply model, the preparation of complex wheeling measurement methods and reserve capacity obligations can also contribute to the uncertainty of green power purchase and sales contracts in addition to the increased transmission and costs. If it involves grid reinforcement, there will be another cost to be shared with Taipower, which will increase the transaction costs of green power purchases.

3. Purchase a certain amount of renewable energy power and the green power certificates. This model is derived from the UK’s green obligation quota system. It is characterized by the separate sale of electricity and green rights. But our nation has completely contravened the core spirit of this system by directly skipping the power companies and handing over the responsibility to major power consumers that lack generality and fairness, and adopting abundled green power certificate system that is relatively difficult to dispatch and lacks market flexibility and liquidity. This is tantamount to stifling the possibility of establishing a green and free transaction market with high efficiency and liquidity.

4. Pay a penalty to the authority for the development of renewable energy.Under the circumstance where no other effective and appropriate tools are available, most manufacturers will select the penalty payment method to resolve the matter. Consequently the end result is that a lot of deposit payment will be added to the Treasury.

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III. How Does the Electronic Parts and Components Manufacturing Industry dopt “Green Energy Transformation”

The manufacturing industry has the highest power consumption ranking in our nation. It has a very high requirement for power quality, and even the instantaneous power voltage drop of a few microseconds (ms) must be effectively controlled. However, the intermittent nature of solar power, wind power, and other renewable energy sources is one of the causes for power voltage and frequency changes. Due to the system protection reasons, when the main power supply is unable to supply power normally, most of the solar power generators must also go offline and discard the power generated unless equipped with energy storage devices. From the quantity perspective, our nation’s non-hydro renewable energy generation capacity is about 8 billion kWh per year while the electronic component manufacturing power demand is 34.6 billion kWh. So it is next to impossible for them to achieve 100% green electricity.

In terms of institutional , the International Energy Agency (IEA) has long pointed out that a competitive low-carbon market and effective regulatory system, as shown in Table 1, is the key to promote green energy transformation. If we examine our nation’s low- carbon strategy, except for the Feed-in Tariff (FIT) as the long-term support for low carbon technology, the consumer demand response and regional grid planning measures that have been adopted, there is a dearth of other competitive market strategies. This can also explain why our nation has such difficulties in promoting the “Green-go First Deregulation” efforts.

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Table 1: IEA Low carbon power strategy framework

Target Policy Regulatory Method Competitive Market

Low Carbon Carbon Pricing ．Carbon Emission ．Carbon Price (Transaction Investment Control Mechanism) ．Long-term Contract Additional ．Long-term Support ．Determining the Level of Policy: Support for Low Carbon Support based on Bid Mechanism Technology ．Incorporate into Electricity Market Operational Short-term ．Market Rules ．Electricity Price with Efficiency Energy Market ．Scarcity Pricing HighGeographical Resolution Reliability ．Reliability Standard ．Electricity Price with HighTime Adequacy Resolution ．Dynamic Pricing Additional ．Capacity Requirement ．Capacity Price Policy: Capacity ．Demand Response ．Demand Side Participation Market Definition Grid Efficiency Grid Supervision ．Regional Planning ．Congestion Price ．Grid Cost Sharing ．Transmission Rights Bidding Power Usage Retail Electricity ．Grid Rate Structure ．Competitive Retail Electricity Price ．Taxes and Surcharges Price ．Distributed Electricity Resources

How to build a new smart grid system based on the electronic industry’s urgent and reliable power needs as well as the high value of loss load risks are shown in Figure 1. Changing the quality of renewable energy supply is the key to successful transformation. Under the new grid market structure, when there is utility power abnormality, the system must have the self-generation adaptive ability or even provide ancillary services to the damaged central power grid for recovery and backup, and at the same time meet the RE100 standard. The system can participate in electricity market transactions, and generate considerable profits for the company through the sales of surplus electricity and capacity. Industrial power consumers with similar complementary electricity consumption patterns or similar lost load values can jointly participate in such innovative trading methods. The results should be optimal, and the efforts can naturally achieve green energy transformation in the most cost-effective manner.

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Figure 1: New and old grid market structure

IV. Renewable Power Purchase Agreement Transactions

Renewable Power Purchase Agreement (PPA) primarily deals with four types of risks: contract period, electricity price, electricity amount, and energy imbalance. In addition, there are also force majeure, contract breach, or change in circumstances related provisions. The terms of our nation’s PPA must appropriately arrange and manage these four major risks.

Internationally, due to the rise of RE100 procurement responsibilities and the environmental protection additivity requirements, signing corporate physical PPAs has become the trend. But with this method the power must be transmitted through the grid. The wheeling and direct supply rules and agreements announced by our nation are designed for this trading model. However, our nation’s current wheeling and direct supply still encounters many obstacles such as the business practices whereby wheeling and direct supply operation provisions cannot comply with the business practice of the contract risk obligations, there is no proper market mechanism for all

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parties to manage the PPA breach risks, there is uncertainty between the green electric energy supply measurement model and the contracted supply amount, and the contract energy balance responsibility is entirely delegated to the third-party, Taipower Company, via a surplus electricity PPA. These obstacles have added a lot of difficulties and risks in establishing PPAs. If our nation wants to catch up with the RE100 green energy transformation, it must rely on more advanced comprehensive wheeling and direct supply system planning, and each one of the existing institutional obstacles must be resolved.

V. Conclusion and Recommendations

For a long time, our government and the private sector have feared and shunned the various competitive markets, especially the competitive power market. The result is excessive dependence on the government command and control measures to implement policies. However, in the face of a large amount of uncertain renewable energy power supply and flexible microgrid dispatching in the future, it is difficult to be compatible with our nation’s existing power system. This will cause considerable obstacles for industries seeking to expand renewable energy use under the premise of ensuring reliable power supply and quality.

The world’s renewable energy market has begun to deregulate. Green power PPA development is unfolding, and the financial innovation blockchain technology has also been introduced into the field of green power PPA. This future development will further challenge the traditional agreements. Our nation’s The Electricity Act and the Renewable Energy Development Act do not have any provisions regarding the establishment of green power trading platforms. This has greatly affected the diversity and sound development of the green power bilateral agreement market and severely hindered the industry’s green energy transformation. We suggest to establish green power decentralized / centralized trading platforms. Taipower should also play the role of an active market creator. The electric power regulatory agencies should loosen the regulations in order to encourage Taipower to enter the market, provide more innovative and diverse market services, and create maximal welfare for the nation and the people.

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Development of Renewable Energy Certification System in Taiwan

Chin-Wen Huang Director, National Renewable Energy Certification Center

Many large international companies have committed to using 100% renewable energy in response to climate change issues, and have encouraged their suppliers to gradually increase the use of renewable energy in order to drive the formation of a green supply chain. With the commitment to environmental assessments and the provisions of the Renewable Energy Development Act regarding large electricity users, domestic companies have increased their demand for renewable energy. The Electricity Act was promulgated by the Office of the President for implementation on January 26th, 2017 to open up the direct supply of renewable energy and free trade of renewable-energy-based electricity retailing corporations. To promote the development of renewable-energy-based electricity retailing corporations, the Bureau of Standards, Metrology and Inspection, Ministry of Economic Affairs promulgated the Implementation Regulations Governing Voluntary Renewable Energy Certificates for implementation in October 2017, regulating the renewable energy certification system in Taiwan.

The three main functions of Renewable Energy Certificates (REC) are as follows: RECs can be used (1) for the greenhouse gas inventory conducted by the Environmental Protection Administration, Executive Yuan, (2) for the evaluation of corporate social responsibility or environmental sustainability, and (3) to link the environmental protection labelling, corporate environmental protection award, green SME, labelling,

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and government’s green procurement.

The five strategies to implement the renewable energy certification system in Taiwan include:

1. To strengthen the legal environment of RECs;

2. To improve the information quality of RECs;

3. To expand the source and supply of RECs;

4. To enhance the voluntary participation in RECs and relevant incentives; and

5. To engage international REC (that is, to strengthen the interaction with international REC ).

In the next few years, enterprises’ demand for RECs is expected to increase. It is advised that various types of renewable energy developers and demanders should understand and participate in the free renewable energy market and grasp the opportunities and benefits created by the free renewable energy market through purchasing renewable energy-based electricity on a small scale.

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The Promotion of Shalun Smart Green Energy Science City

Hong-Yan Wang Ph. D, Shalun Smart Green Energy Science City Office

Kuang-Chong Wu Ph. D, Green Energy Industry Promotion Center

Taiwan spends annually more than 2 trillion NT Dollars (64.5 billion USD) in purchasing energy from abroad because only less than 3% of energy is self-supplied. To ensure the energy security and environmental sustainability, the industrial innovation in renewable energy technology is listed as one of “Five plus Two” national development plans. To formulate and construct the Shalun Smart Green Energy Science City (SSGESC), located in Tainan, as a new cluster of renewable energy is one of key performance indices in evaluating the success of this project. The science city will play an important role in connecting R&D capabilities domestically and internationally, transforming green energy industry, supporting innovative product development and commercializing new in renewable energy. To develop an Eco-system by linking internal R&D core area to outreach industrial supply chains, Shalun is planned as a new smart city with renewable energy and technological R&D cluster for international green energy companies.

The mission of SSGESC Office under Green Energy Industry Promotion Center is to research local endowment and resources, coordinate and control the schedules of various projects proceeding in core area, and provide emulations or suggestions for building excellent R&D environment in hardware and software. So far, the first driverless cars test bed in Taiwan is operated by the National Applied Research Laboratories (NARL) since

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Feb. 2019. Those construction programs for (phase I) in R&D joint center for renewable energy technology (C zone), Demonstration sites (D zone) and southern campus of Academia Sinica (E zone) will be completed and operated at the end of 2019 or at Q1 of 2020, when 387 R&D personnel will move in and increase to 716 by 2021. Meanwhile, the supporting staff from academics and industries will reach 1,500 by 2021.

In addition, some special functions are involved in developing the science city. First, the research fields of renewable energy includes 4 major items as energy generation, energy saving, energy storage, and system integration. Second, this development is a joint program between central and local governments. For example, C zone is administrated by Ministry of Science and Technology (MOST); D zone is performed by Ministry of Economic Affairs (MOEA); while the Tainan city government is responsible for building the Exhibition Hall (A zone), etc. Third, the science city is formulated as an international platform and provides one-stop from upstream to downstream. Fourth, with large space for potential development, the science city is fitted as demonstration sites and test bed for AI or green energy devices verifications and applications.

Finally, management and investment attraction are important factors for sustainable operation. In addition to setting up the platform for academic-industrial-governmental cooperation among them, one-stop service, subsidy, and incentives provided by the government are also included in future operation proposal. The administration office for the science city is under discussion.

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Development Opportunities for Emerging Industries under the Decentralized Green Power Framework

Jyh-Yih Hsu Professor, Department of Management Information Systems and Department of Applied Economics, National Chung Hsing

Tsung-Lin Yang Master of Economics Student, National Chengchi University

"The Electricity Act" has been amended and promulgated on January 26, 2017. It is an important milestone in our nation's energy transformation, and is divided into two phases to drive the electricity industry reform. That is, within the next one to two-and-a-half years, the first phase called "Green Power First" will be implemented to separate power plants from transmission and distribution network accounting to achieve the division of labor force. It is expected that after six to nine years later, the second phase of actual plant/network separation will be implemented. In addition, on April 12, 2019, the Legislative Yuan passed the amendments to the "Renewable Energy Development Act" to set the target of 27 GW in renewable energy (20% of total energy used) by 2025.

Compared to the traditional thermal and nuclear power generation systems, renewable energy generation is a relatively open system. When the renewable energy increases to a certain proportion, the duck curve would increase during the day. This may lead to zero electricity prices or even negative electricity prices in the day-ahead wholesale market, or cause the steep duck neck net load spike problems after sunset. These problems will become brand new challenges to the Independent System Operators (ISO) and the Market Operators (MO). Renewable energy operators or electricity operators must cooperate with the other stakeholders to seek and create a "win-win" solution.

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Based on this phenomenon, the intermittent nature of renewable energy may turn into a headache for the traditional power system. That headache is caused by the triggering of a “cross-domain need” that allows multiple stakeholders to create “higher values” for the whole society. The efforts can not only cultivate opportunities and economic drive for the emerging industries; but also inspire a wave of innovative employment for the younger generation through energy , Big Data, and artificial intelligence (AI) related technology applications. Meanwhile, the system can also be more empowering and enabling to serve the power consumers. Specifically, increasing loads of the so-called inelastic power demands referred to traditional demand side responses, the energy storage systems, electric , or even smart , communities, and cities will gradually switch into flexible “supply side responses” under the 5G and AI frameworks.

In light of the energy transformation trend in Taiwan, this paper explores the challenges and opportunities faced by “traditional electricity industry” as well as the “energy emerging industries”, and discusses the success stories and highlights from the developed countries. Finally, the paper also makes recommendations as reference for the governments, Taipower Corporation, and the industry.

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The Development of Taiwan’s Offshore Wind Power Industry

Chiu-Feng Lin Chairman, Taiwan Wind Industry Association

After demonstration, selection and bidding, Taiwan officially announced that it would achieve a total capacity of 5.7GW by 2025, becoming the highlight of the global offshore wind power market. The government promoted the development of the offshore wind power industry by promulgating the "Offshore Wind Power Industry Policy" and the "Offshore Wind Power Inter-industry Implementation Plan", including the local production of emerging offshore wind turbine components, underwater foundation and maritime engineering vessels, in hopes of promoting energy diversification and self-sufficiency, driving domestic demand and employment, and building a friendly development environment. On December 16, 2018, the Industrial Development Bureau completed the review of the proposal for the 2021 inter-industry implementation plan made by wpd Taiwan Energy Co., Ltd., Orsted and CIP and facilitated the cooperation between the developers and domestic vendors. In addition to inter-industry projects announced by the Industrial Development Bureau, many starts-up will be established in response to issues like reduction in installation costs (such as automated production lines and modular production of wind turbine components), improvement in efficiency (such as adoption of big data), reduction in installation and maintenance risks (such as drone blade inspection and innovative climbing equipment). Wind farm developers are encouraged to raise industrial issues for domestic small and medium enterprises and academic institutions to solve, so as to create the business

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opportunity for . Taiwan Wind Industry Association will assist the government in promoting the cooperation between developers, system integrators and domestic venders during 2023 and 2024 by establishing the local supply chain for the officially announced projects according to the inter-industry implementation plan. In the future, Taiwan Wind Industry Association will integrate the strengths of the industry and academia, continuously help fill the gap in the industry chain, and promote multi-party international cooperation; in addition, Taiwan Wind Industry Association will act as a of communication between the government and the industry to improve the environment for industrial development and make greater contributions to the offshore wind power industry in Taiwan.

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MOEA Attends to Demonstration Wind Farm Development to Achieve the 2020 Target of Offshore Wind

Date: 2019-11-07 Source: Bureau of Energy, Ministry of Economic Affairs

On Oct. 5, Deputy Minister Wen-Sheng Tseng of the Ministry of Economic Affairs (MOEA) visited the Long-Feng Fishery Port of Miaoli and Zhunan offshore with several domestic media to learn about the construction progress of the Formosa I demonstration wind farm, which is scheduled to be completed in mid-October. Combined with the 2 demonstration turbines, the total capacity of these 22 turbines will be 128 MW. Annual electricity generation is expected to reach 480 million kilowatt hours, and the annual carbon reduction is expected to reach 270,000 tons. This will be the first offshore wind farm and an important milestone for offshore wind development in Taiwan and will be of great significance for our promotion of offshore wind policy.

MOEA explains, the construction of Formosa I began in 2019, and the installation of 20 foundations and 18 turbines has just finished. All 20 6-MW turbines are scheduled to be completed this October, and the total capacity is 128 MW including existing 2 4-MW demonstration turbines. This would be Taiwan's first offshore wind farm and will supply power to 128,000 households.

MOEA adds that, since its announcement on July 3rd, 2012, the "Offshore Demonstration Incentive Program" has facilitated Formosa company to complete the first phase of two demonstration turbines with a total capacity of 8 MW in October 2016, which were successfully commissioned in April 2017. This verifies the legal, technical

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and financial feasibilities of offshore wind development of Taiwan, and sets an important milestone marking the shift from onshore to offshore for wind development. In the meantime, the local supply chain, including EIA survey, site survey, sea cable procurement and construction of land cables, and substations were also created with an output value of NT $1.2 billion. The accumulated capacity of offshore wind is expected to reach 976 MW in 2020 and 5.7 GW in 2025.

To reach the target of 20 % renewable energy generation by 2025, MOEA has devised a promotion strategy with 3 phases, which includes Demonstration Incentive Program, Zones of Potential, and Zonal Development, to strengthen the foundation of promotion in the short term, to establish mid-term and long-term measures, to optimize the developing environment, so as to achieve the long-term goals.

Deputy Minister Tseng indicates that offshore wind energy is an important policy for national energy transformation, industrial transition, green energy employment and domestic economic development. In the future, we will stick to the established energy policies and try our best to promote offshore wind and complete the target as scheduled. In 2025, 5.7 GW of offshore wind power will be installed, which will drive the investment and output value to exceed NT $1 trillion and NT $1.2 trillion, create 20,000 job opportunities, and reduce carbon emission by 11.92 million tons annually, equivalent to 30,644 Da-An Forest Parks. This will strengthen our energy security, create an industrial value of the green economy, and achieve the sustainable vision of Taiwan.

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Promotion of Solar Energy

Date: 2019-10-29 Source: Department of Information Services, Executive Yuan

With an eye toward energy security, the green economy and environmental sustainability, on October 27, 2016 the Executive Yuan approved a plan to promote green energy technology and industrial innovation as part of the government's "five plus two" innovative industries plan, which calls for 20 percent of Taiwan's energy to come from renewable sources by 2025. Of that 20 percent, nearly two-thirds (66.3 percent) will be solar power. The plan lays a clear path toward achieving this goal: 6.5 gigawatts (GW) of installed capacity by 2020 and by 2025 the full 20 GW.

Development strategies

◆ Short term: With the completion of the Two-year Solar PV Promotion Plan—including the construction of demonstration projects, tailoring of rules and regulations, and the simplification of operating procedures—Taiwan installed 1.7 GW of solar power capacity between July 2016 and December 2018, setting a solid foundation on which the industry can continue to grow. To reach the 2020 cumulative capacity objective of 6.5 GW, the government will focus on three main strategies: increasing the installation of rooftop panels at industrial parks, promotion at both the central and local levels, and working solar power generation into the operations of farms, ranches and facilities.

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◆ Medium term: Building on the experience and success of short-term results, a raft of measures will be adopted to improve the environment for solar power and gradually achieve Taiwan's 2025 capacity goal of 20 GW. These measures include taking a dedicated approach to promoting ground-based systems, encouraging industrial parks to increase installation of solar power, refining laws and regulations governing solar power development, and planning out necessary enhancements to distribution and transmission infrastructure for solar energy hotspots. Administrative initiatives such as single-window service for solar projects and integrated cooperation across multiple ministries and agencies will also help.

◆ Complementary measures: Measures designed to speed the development and build-out of solar power include expanded inventorying of suitable sites, and developing and promoting the PV-ESCO operational model, where energy services companies build and maintain photovoltaic panel systems on rooftop space leased from building owners. Encouraging to offer financing for the installation of solar power, promoting multiple sources of financing, and training personnel in the field of solar power financing are also options.

Developing solar power

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Four-year Wind Power Promotion Plan

Date: 2019-06-14 Source: Department of Information Services, Executive Yuan

The Four-year Wind Power Promotion Plan (2017-2020) is part of an effort by the Taiwan government to transform and rebuild the nation's energy sector around energy security, the green economy and environmental sustainability, with the overarching goal of phasing out nuclear power and increasing renewable resources to 20 percent of the nation's energy portfolio by 2025.

The plan is expected in the short term to solidify industry foundations by increasing installed wind power capacity to 1.334 gigawatts (GW) over four years. In the medium- to-long term, it will address the root causes of Taiwan's energy challenges, improve the installation environment, and raise installed capacity to 6.9 GW (1.2 GW on land and 5.7 GW offshore) by 2025. These efforts will promote energy diversification and self- sufficiency, spur domestic demand and job growth, and create a friendly environment for wind energy development.

Principles and objectives

◆ Land-based wind power: For projects and cases that have been approved for development, the plan will give priority assistance to proactive local governments and promote the more viable sites. The objective for 2017 through 2020 is to raise

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total land-based installed capacity to approximately 814 megawatts (MW).

◆ Offshore wind power: The principle for offshore development is to develop demonstration sites first, then potential sites, then entire zones. The government will also provide subsidy assistance and awards to demonstration facilities, and direct efforts to convert potential sites into full-scale wind farms. The goal by 2020 is to install approximately 520 MW of offshore capacity.

Expected benefits (of installing 5.7 GW offshore wind capacity by 2025)

◆ Lower carbon emissions: Offshore facilities will generate 21.5 billion kilowatt-hours of energy each year, cutting carbon emissions by 11.92 million metric tons annually.

◆ Higher industrial output: The industry will generate NT$1.8 trillion (US$58.4 billion) in output value.

◆ More jobs: Some 20,000 job opportunities will be created.

◆ Higher investments: The projects will spur investments of NT$1 trillion (US$32.4 billion).

Four-year Wind Power Promotion Plan

31 Pubilisher : Jang-Hwa Leu, Director General Industrial Development Bureau, Ministry of Economic Affairs

Address :

No.41-3, Sinyi Rd., Sec. 3, Taipei 106, Taiwan, R.O.C.

Publishing Directors :

Yun-Sheng Ling, Liang-Tung Chen, Chien-Cheng Pan, Ting-Wei Lin

Advisory Committee :

Shuo-Yan Chou, Leon Tzou, Gong-Zhe Li

Executive Editors :

Yi-Hua Tang, Kun-Shen Shen, Ya-Lan Chen, Hsin-Ying Chen, Kerry Lee, Yu-Ting Huang

Foundation Of Taiwan Industry Service

Address : 1F.,No.14, Aly. 39,Ln. 198, Siwei Rd., Da’an Dist., Taipei City 10668, Taiwan (R.O.C.) Tel : 886-2-2784-4188 Fax : 886-2-2325-3922 : http://proj.ftis.org.tw/