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III. Why Solar Photovoltaic and Offshore Wind Power? MOEA Vol.20-2 Dec.2019 Sustainable lndustrial Development Newsletter Industry in Responding to Energy Transition Special Report Editorial Opinion 4 Taiwan’s Green Energy Policy Promotion and The Executive Yuan 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 renewable energy 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 energy conservation, solar power, and Science City wind power based on the objectives of energy safety, 21 Development Opportunities for Emerging environmental sustainability, and green economy. 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 4 Special Report 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 Research and Development + Technology Demonstration Verification + Shalun Smart Green Energy Science City Generating Energy Energy System Technological Energy Storage Saving Integration Innovation Supplying green Increasing Helping power Creating energy electricity storage saving jobs Increasing the flexibility Filling the gap of Increasing energy Increasing penetration of energy supply 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 5 Industry in Responding to Energy Transition 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 security. 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 semiconductor industry 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 consulting firm 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. 6 Special Report IV. How to implement industrial transformation? 1. Solar photovoltaic In the solar photovoltaic industry chain, Taiwan mainly focuses on solar cell manufacturing, accounting for 45% of the total output 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 construction technology, fostering international teams. In addition to investing in power plant development, Taiwan also encourages vertical integration 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. 7 Industry in Responding to Energy Transition 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
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