Taiwan's green energy diversification strategy unveiled amidst COP28 resolutions

Annie Huang, Taipei; Vyra Wu, DIGITIMES Asia 0

Credit: Pixabay

The UN climate talks have reached a consensus, advocating for a transition towards a world free from fossil fuels. At COP28, a coalition of diplomats and ministers struck a resounding chord: to triple the world's renewable energy installation capacity by 2030. Taiwan, despite not being a UN member, actively bolstered its renewable energy supply, responding to a surging demand for green power as industries pivot towards a net-zero future.

The pivotal agreements at COP28 spotlighted a collective goal to double renewable energy output by 2030 while ramping up annual energy efficiency improvements from 2% to 4%. Taiwan's intrinsic ties to the global supply chain, irrespective of its UN status, underscored its pivotal role in shaping international policies and industrial trends.

However, as Taiwan's industries embrace the green transition to meet clients' demands, discussions echo about the concentration of green energy in the hands of corporate giants and the adequacy of its supply.

The Ministry of Economic Affairs (MOEA) unveiled that despite holding firm to its 2025 wind and solar power installation targets, global delays and the pandemic's sway disrupted the trajectory. Taiwan's robust economic growth catapulted total electricity consumption, posing challenges in hitting the 20% green energy mark by 2025, now estimated to potentially be achieved by October 2026.

Behind the scenes, solar and offshore wind energy sectors grappled with unforeseen obstacles, from the ripple effects of domestic elections hindering project timelines to financing storms and logistical shortages, elevating development costs in 2023.

While the pace of energy infrastructure development lags, industry observers note an unwavering commitment towards the overarching green energy trajectory, propelled by a seismic surge in enterprise demand across technology, manufacturing, and finance sectors.

The spotlight on the green energy trading market zooms in on Taiwan Semiconductor Manufacturing Company (TSMC) as a significant buyer. MOEA clarified that TSMC doesn't stand alone in this realm, having procured just a fraction of the 1.53 billion kilowatt-hours of green energy sold to private enterprises by Taiwan Power Company in 2023.

Acknowledging TSMC's proactive stance in green energy inquiries, stakeholders emphasize the diversified allocation strategy, steering clear from sole enterprise dependence on any single energy project to mitigate market risks.

To bolster domestic green energy demands and foster market dynamism, the Energy Administration unveiled a groundbreaking move on December 14, 2023. This initiative allows the resale of self-generated renewable energy (solar photovoltaic types 2 and 3) to renewable energy sellers, with estimated annual resale capacities exceeding 15 billion kilowatt-hours based on completed private projects.

This measure, as highlighted by PwC Taiwan, streamlines processes and cuts costs for electricity sellers, propelling a surge in traded green energy. Simultaneously, it empowers enterprises to access green power at competitive rates while lowering procurement costs for public utility electricity sellers, heralding a win-win scenario in the energy landscape.