Renewable Energy and Clean Coal

An Expert's View about Electricity Generation and Distribution in Taiwan

Last updated: 26 May 2011

Taiwan is a booming market for exporters of renewable energy and clean coal technology. In 2004, the U.S
Department of Energy and Taiwan’s Bureau of Energy signed a technology cooperation agreement on Clean
Coal Technology and Advanced Power Systems. Following the second National Energy Conference in 2005,
Taiwan announced having 10% as its goal of installed capacity of renewable energy. In 2009, Taiwan passed
the Renewable Energy Act to further encourage private investment in renewable energy, and Taiwan Power
Company started to buy electricity from privately-owned renewable energy facilities.

Market Data
In 2010, renewable energy accounted for 6.42% of Taiwan's installed power generation capacity. The Taiwan
Authorities hope to increase this ratio to 10% by 2016.

Having plenty of rainfall and steep mountainous terrain, Taiwan's abundant hydraulic resources have been
developed since 1895. Taiwan Power Company, however, has slowed down its plans for constructing new
hydraulic power plants because of public concerns on environmental protection. By the end of 2010, Taiwan's
installed capacity for hydraulic power reached 2,085 MW (4.6% of total installed capacity) and achieved a
gross power generation of 1,303 GW-Hour (2.0% of total gross power generation).

Wind is a natural resource that Taiwan can harness for power generation. Until early 2010, Taiwan Power
Company had awarded several major wind power projects, with a total investment to US$ 200 million, to joint
ventures formed by local companies and foreign suppliers of turbines and generator sets. Taiwan Power
Company is currently studying the feasibility and economics of building off-shore wind power facilities with the
support of Taiwan’s Bureau of Energy.

In 2006, Taiwan's Industrial Technology Research Institute, in collaboration with Taiwan’s Bureau of Energy,
began a 5-year solar photovoltaic demonstration program. According to the Bureau of Energy's 2010
statistics, demonstration units with a power generation capacity of 10-20KW had been installed on 17
commercial/industrial facilities and 16 educational facilities. The Bureau of Energy provided US$ 5,000 for each KW
of solar photovoltaic system installed.

According to data published by Taiwan’s Environment Protection Administration (EPA), 5,837,647 metric tons
of household garbage and industrial waste were delivered to 20 incinerators around the island in the period of
2001 to 2010. Steam turbine power generators with a total capacity of 646 MW are installed at these locations
and generated more than 2,760 MW-Hour in 2010.

Owners and operators of renewable energy facilities can sell the generated electricity to the state-owned
Taiwan Power Company at appointed prices based on the source of the renewable energy.

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Posted: 25 May 2011, last updated 26 May 2011