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Policy objectives are specified in the Strategy Framework of Sustainable Energy Policy, approved in 2008. According to the Framework, sustainable energy development must balance the objectives of energy security, economic development, and environmental protection, while considering the need of future generations. The specific targets include:
 improving energy efficiency by more than 2% per annum from 2008, so that the energy intensity level is to decrease by 20% in 2015 compared with the 2005 level, and with further technological breakthroughs and proper matching administrative measures, the energy intensity level is to decrease by 50% in 2025 compared with the 2005 level;
 developing clean energy by: reducing CO2 emissions to their 2008 level between 2016 and 2020, and further to their 2000 level in 2025; increasing the share of low-carbon energy in electricity generation from the current 40% to 55% in 2025; and
securing stable energy supply by building a secure energy supply system to meet economic development goals.

To achieve these objectives, the government has been adopting measures in: first, setting up a comprehensive regulatory framework such as on the implementation of the "Greenhouse Gas Emissions Reduction Act", and the "Renewable Energy Development Act", and formulating the "Regulations on Energy Tax" to reflect the external cost of energy consumption, amending the "Energy Management Act" to promote energy saving measures; and second, providing cleaner energy supply by developing carbon-free renewable energy, and rationalizing energy demand, by reforming the industries towards a low-energy intensive structure.

The economy depends heavily on energy imports, with fuels accounting for over 25% of the overall import bill. In 2013, 98% of the total energy supply was imported (Chart 4.4). The largest source of domestic energy production is biomass and waste; coal has not been produced since 2001.

(…) Although thermal energy remains the biggest source for electricity generation, electricity generated by renewable energy, in particular solar and wind power, has increased rapidly. This reflects partly the government's efforts to increase domestic energy supply to reduce Chinese Taipei's reliance on imported energy.

Renewable energy (solar, biomass, geothermal, ocean and wind energy) accounts for a small share of total electricity generation (Table A4.3). Nevertheless, wind and solar power generation has been increasing fast. The government expects that power generation capacity from renewable sources will account for 16.1% of total power generation capacity by 2030.

Table A4.3 Electricity produced and purchased, 2012-13
Item Electricity produced Share of Growth rate (%)
& purchased (GWh) total (%)
Renewable energy Year: 2012 2013 2012 2013 2012 2013
Conventional hydro: TPC: 3,995 4,539 1.5 2.1 -9.9 -3.2
IPPs: 113 150 0.1 0.1 -2.3 -4.5
Hydro entrusted to TPC: 768 712 0.4 0.3 23.8 -11.4
Wind power: TPC: 803 748 0.4 0.4 55.9 1.5
IPPs: 730 869 0.3 0.4 44.0 15.4
Solar energy: TPC: 9 17 0.0 0.0 123.7 30.8
IPPs: 29 284 0.0 0.1 1,133 127.2
Subtotal: 5,546 7,319 2.6 3.4 6.7 0.6

In accordance with 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 annual power generation units, except the electricity generated by renewable energy. The fund is used to subsidize utilities when they produce or purchase electricity generated by renewable energy, mainly because the cost of generating electricity using non-renewable energy is lower than the cost using renewable energy. Under the Renewable Energy Development Act, the importation of equipment for use in generating renewable energy is exempt from import tariffs, provided that such intended use is verified and there is no domestic production of such equipment.

In 2012 the government launched the "Three Industries, Four Reforms" programme to accelerate the adjustment of the industrial structure. (…) The main strategies include incorporating service elements into the manufacturing sector, "technologizing" and "internationalizing" service industries, and adding innovative, aesthetic, and green elements into traditional industries, to create distinctive products.

In September 2012, the MOEA published an Action Plan for Industrial Structure Optimization, and announced the "Three Industries, Four Reforms" programme, which aims to enhance the competitiveness of its industries. The programme intends to break through the conventional division of industry, and intertwine the electronic sector with other sectors, such as services, and green energy. "Servicification" of manufacturing is one of the key themes in the programme, under which "smart life services" and "smart tool equipment manufacturing" are identified as key industries.

Green energy was identified as one of the "newly emerging industries". The authorities plan to focus on the development of the main industries, including solar photovoltaic energy, wind power (in the renewable-energy field) and LED lighting energy information and communications (in the energy-conservation field).