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4.32. The Guidelines on Energy Development (2017) remain the principal policy document for the sector. The policy document envisions a smooth process of energy transition through balanced advances in the areas of energy security, green economy, environmental sustainability, and social equity. Specific objectives under these four pillars include ensuring energy diversity; increasing energy efficiency; strengthening energy planning and management, and energy saving; enhancing energy storage and smart systems integration; reducing greenhouse gas (GHG) emissions; and establishing an energy market environment with fair competition.

4.33. Energy policy continued to be influenced by the Greenhouse Gas Reduction and Management Act (2015), which was superseded by the Climate Change Response Act on 15 February 2023. The new Act upgraded Chinese Taipei's framework for GHG reduction and formalized its goal of transitioning to net-zero GHG emissions by 2050. Key innovations include the introduction of a carbon pricing mechanism and a complementary incentive mechanism for emissions reduction. Chinese Taipei's plans for transitioning to net-zero GHG emissions include an energy transition strategy comprising three pillars (building a zero-carbon energy system, enhancing infrastructure for system resilience, and promoting green energy innovation and investment) and nine action areas.

4.34. (...) the BOE[Investment Commission, Ministry of Economic Affairs, Bureau of Energy] also provides consulting assistance on GHG emission management and emission verification subsidies to businesses. The subsidies may target inventory checks, voluntary reduction verifications, and offset programme verifications. In addition, Chinese Taipei's Green Finance Action Plan seeks to catalyze fundraising and investment in the green energy segment.

4.35. Between 2018 and 2022, (...) the electricity generation portfolio shifted towards liquefied natural gas (LNG)-fired and renewable energy power plants (Charts 4.2 and 4.3).

4.36. (...) The authorities indicate that TPC[Taipower] makes continuous efforts to upgrade infrastructure and expand the electricity grid's coverage, with a focus on promoting renewable energy.

4.37. (...) Since 2017, renewable energy producers can sell their electricity to consumers either directly or through TPC's[Taipower] grid (wheeling). Alternatively, they can sell it to TPC at guaranteed feed-in tariffs set annually through broad consultations convened by the MOEA. Non-renewable power producers are allowed to sell electricity only to TPC. (...)

4.38. Chinese Taipei has implemented a two-stage tendering system for the allocation of envisaged offshore wind energy generation capacity with a view to ensuring economic efficiency and minimizing the fiscal burden of guaranteed power purchase schemes. In the first stage, project developers must meet a score threshold, based on their technical and financial capabilities and their plans to integrate into local supply chains by implementing an industrial relevance programme. The second stage is a price-based competitive auction. In case of identical price bids, project developers are ranked according to their scores on the optional industrial relevance criteria.

4.40. Renewable energy generation equipment without a locally manufactured analogue remains eligible for import duty exemption, provided that its intended use is verified. During the review period, Chinese Taipei implemented a Green Energy Roofs Project offering subsidies to local administrations to install rooftop photovoltaic power facilities. Subsidies were also made available to foundations, medical institutions, and schools that wish to install a stationary fuel cell power generation system (up to 500 kW capacity).

4.48. (...) Demand for natural gas is set to grow, driven by the authorities' efforts to transition to less polluting energy sources.

4.53. (...) During the review period, the authorities sought to address several challenges faced by the sector, including the prevalence of cross-strait links in its overall global value chains position, the need to reduce its GHG footprint, insufficient investment and innovation, and an ageing population. Accordingly, Chinese Taipei's strategic priorities were focused on industrial upgrading ("5+2 Innovative Industries Plan" followed by the Six Core Strategic Industries Promotion Program), optimizing the start-up ecosystem, stepping up digital transformation, strengthening digital infrastructure and governance, transitioning to low carbon industrial production, and fostering the development of green industry.