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4.29. The energy sector remains governed mainly by the Energy Administration Act, the Petroleum Administration Act, the Natural Gas Enterprise Act, the Electricity Act, and the Renewable Energy Development Act. (...)

4.30. In May 2019, an amendment of the Renewable Energy Development Act introduced local authorities' competence to support the reviewing process of renewable energy generation equipment (up to 2,000 kW capacity); new "conversion rules between feed in tariffs and green power direct supply/wheeling"; incentives for power generation cooperatives, civil power plants established by residents of a community, and renewable energy power generation and energy storage facilities installed in indigenous areas; and a requirement that large electricity consumers either install renewable generation and storage facilities of a certain capacity or purchase a certain amount of electricity generated from renewable sources (verifiable by a certificate). [17] (...)
[17] Large consumers that fail to comply with the requirement must pay "monetary substitution" to the competent authority for the development of renewable energy.

4.31. In 2020, Chinese Taipei enacted "Regulations for the Management of Setting up Renewable Energy Power Generation Equipment of Power Users above a Certain Contract Capacity" requiring large electricity consumers (those consuming more than 5,000 kW) to make certain investments in renewable energy generation or storage.

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 Energy policy continued to be influenced by the Greenhouse Gas Reduction and Management Act (2015), which was superseded by the Climate Change Response Act on 15 February 2023.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.