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(...) In 2016, an Energy and Carbon Reduction Office was created to oversee implementation of greenhouse gas emission reduction targets (see below), increase renewable power (solar and wind) generation and facilitate research and development spending on green energy.

The Energy Administration Act (1980, as amended) was promulgated to upgrade the energy administration aimed at the rational and efficient use of energy. It provides for the establishment of an Energy Development Fund, sets out approval requirements for energy-related activities, and has provisions on energy use and audit as well as penalties. It was amended once over the review period, in 2016, in order to reflect revised rules on confiscation contained in the Criminal Law.

Energy policy is also influenced by the 2015 Greenhouse Gas Emission Reduction and Management Act. Under this Act, an emission reduction target has been set at 50% of the 2005 level by 2050. Entities are assigned carbon emissions allowances and if they exceed the initial allocated allowances, they can procure unused allowances through the Early Action Offset Project, carbon trading, or other approaches. Penalties for non-compliance include fines (maximum of NT$1,500 per metric ton), suspension and shutdown

Chinese Taipei continues to pursue many of the targets contained in its 2008 Sustainable Energy Development Policy, which has as the overall goal of establishing a high efficiency, high value-added, low emission and low dependence energy consumption and supply system, through cleaner energy supply and rationalized energy demand. [62]

[62] Sustainable Energy Development Policy. (...) Specific targets to be reached by 2025 include: improving energy efficiency by more than 2% per annum so as to decrease energy intensity by 50%; reducing CO2 emissions to the year 2000 level; increasing the share of low carbon energy in electricity generation systems to 55% (from the current 40%); increasing the share of renewable energy in the electricity system to 8%; increasing the use of low carbon natural gas to account for 25% of power generated; and reducing carbon intensity of manufacturing by 30%. Other objectives are to reconsider the nuclear power option; replace existing power generating units; introduce clean coal technology; rationalize energy prices; allocate emission quotas and reduction requirements for industry; and undertake various regulatory reforms. See also WTO documents WT/TPR/S/232/Rev.1, 28 July 2010, and WT/TPR/S/302/Rev.1, 18 December 2015.

A more recent 2017 Guideline on Energy Development sets out the main pillars of Chinese Taipei's energy policies, namely: energy security; green economy; environmental sustainability; (…) Its objectives are to end nuclear energy by 2025 and take the necessary steps to ensure this, including through energy transition, energy saving, (...) Other notable aspects include: reducing dependency on fossil fuel energy, expanding the use of natural gas, and strengthening incentives for green energy development. Energy market reform is to be promoted on the premise of "diversified supply", "equity in usage" and "freedom of choice", and energy prices are to be rationalized. An Energy Transition White Paper will be elaborated to achieve the objectives set in the Guideline; the authorities indicated that this should be completed by June 2018. External concerns have been expressed that the ambitious target of ending nuclear power by 2025 may be an expensive and complicated option, particularly given limited operating energy reserves.

"Taipower" (TPC), a publicly owned enterprise, continues to play a dominant role in the electricity sector (Section 3.3.5). It generates 70% of total electricity produced and until recently had a monopoly on the transmission, distribution and sale of electricity. However, significant industry changes were set in train with the amendment of the Electricity Act in January 2017, which allows renewable energy generating corporations to sell their electricity directly to consumers rather than being obliged to sell it to TPC as before. (...) . It also allows for the establishment of renewable energy retailing enterprises and fully opens users' power purchasing choice for renewable energy. (...)

Chinese Taipei's target is to increase the share of locally produced renewable energy in the total supply to 20% by 2025; it has been estimated that investments of around NT$1.8 trillion will be needed. In addition to renewable energy targets and objectives set out in the 2008 Sustainable Energy Development Policy and the 2017 Guideline on Energy Development, "green energy" is also one of the five main innovative industries included in the 17th mid-term development plan (NDP 2017-2020), for which industrial innovation plans are being implemented (Section 2). Additionally, a green energy infrastructure component has been included in the 2017 2021 Forward-looking Infrastructure Development Programme (Section 2); with a budgetary allocation of NT$20.8 billion to be used for shoring up the infrastructure and certification capabilities needed for green energy development. The focus will be on conserving, storing and creating energy as well as integrating systems. Initiatives include: (a) installing low-voltage smart meters across Chinese Taipei and implementing time-of-use electricity pricing plans which can be selected by end users; (b) promoting research and development platforms to improve photovoltaic modules' reliability, efficiency, cost and safety; (c) constructing underwater foundations and heavy cargo piers needed for wind power development; and (d) establishing the Shalun Green Energy Science City, a green-energy industry ecosystem which will include a certification site and an inspection and testing centre.

As required by the Renewable Energy Development Act (promulgated in 2009), the TPC and IPPs must contribute to a renewable energy fund. The contribution is based on their units of power generated annually, excluding the electricity generated by renewable energy. The fund is used to subsidize utilities when they produce or purchase electricity generated by renewable energy. Under the same Act, the importation of equipment for use in generating renewable energy is exempt from import tariffs, provided that its intended use is verified and there is no domestic production of such equipment.

New incentive programmes are in place in order to help achieve renewable targets (Table 4.13). The 2-Year Solar PV Project and the Green Energy Roofs Project are first steps towards meeting the goal of 3 GW of rooftop and 17GW of surface-based solar power installations by 2025. For each of these projects, the incentives take the form of "feed-in" tariffs. The authorities confirmed that there are no local-content requirements.

Table 4.13 Renewable energy incentives, 2018
Governing regulations (date introduced) Description
2-Year Solar PV project
(October 2017) Two-year programme (running between June 2016 and June 2018) (a) to install solar power units on public buildings, factories, agricultural facilities and other rooftops (goal of 910 MW of power) and (b) to install surface-based solar installations on land currently used by the salt industry, land subject to severe subsidence, aquatic areas, sealed landfills and polluted acreage (goal of 610 MW of power).
Green Energy Roofs Project
(October 2017) Over the period January 2018 to December 2020, local administrations are eligible for subsidies to install roof solar panels. Subsidies cover 40% of the construction costs (50% in remote locations) and 100% of the design costs. Subsidies are also available for building public solar power stations in remote areas and aboriginal lands; 100% of the design costs are covered and an additional subsidy, not exceeding NT$600,000 would be provided for the building of power lines to these power stations. Local administrations are responsible for selecting service providers to install the rooftop photovoltaic systems for building owners. Electricity generated by the solar panels is first consumed by the building occupants, and any surplus is sold wholesale by the service provider to the TPC for suppling other homes and businesses. The photovoltaic service provider that installs the system can sell the generated electricity to the grid at a feed-in tariff rate that is guaranteed for 20 years. From this tariff, at least 10% will be returned to the building owners, while another 3% will go to local administrations to support green energy development funds and local infrastructure.
4-year Wind Power Promotion Plan
(2017-2020) Incentives take the form of a 20-year guaranteed power purchase scheme provided under the framework of the Renewable Energy Development Act (2009). In 2018, two options are provided for offshore wind developers. One is a guaranteed feed-in tariff of NT$5.8498/kWh for 20 years, and the other is a guaranteed feed-in tariff of NT$7.1177/kWh for the first 10 years and NT$3.5685/kWh for the next 10 years. The target is to reach 520MW of offshore wind by 2020 and 5,500 MW of offshore wind by 2025.