Taiwan aims to increase the proportion of energy generated from renewables to 20 percent by 2025.
This past March, Taiwan saw its largest land-based solar power plant commence operations with great fanfare in the southern city of Tainan. Incorporating more than 480,000 locally produced solar panels, the 214-hectare plot boasts a 150-megawatt installed capacity and is expected to generate 200 million kilowatt-hours of electricity per year, an amount equaling the needs of roughly 57,000 households, according to state-run utility provider Taiwan Power Co. (Taipower). Premier Su Tseng-chang (蘇貞昌), who spoke at the opening ceremony, praised the project for taking environmental concerns into account, citing the preservation of an on-site ecological pond that provides a safe habitat for migratory birds and other local wildlife species. At a total cost of NT$9.65 billion (US$345 million), the facility complements the 100-MW capacity solar farm completed in 2019 at Changhua Coastal Industrial Park in the central county.
Taiwan’s solar and wind energy sites are now able to produce more electricity than the country’s two active nuclear plants, accounting for about 11 percent of the total energy supply. To achieve the goal of phasing out nuclear power while reducing reliance on imported energy sources, the government aims to boost green power generation to 20 percent by 2025. In her second-term inaugural address in May 2020, President Tsai Ing-wen (蔡英文) reiterated her commitment to energy restructuring, targeting green and renewable energy under the six core strategic industries initiative. “Over the past four years, renewable energy has experienced explosive growth, and Taiwan has become a hotspot for international investment,” she said. “We’re going to make Taiwan a center for green energy in Asia.”
Taiwan’s first offshore wind farm, with 22 turbines and an installed capacity of 128 megawatts, is located off Miaoli County in northern Taiwan. (Photo courtesy of Ministry of Economic Affairs)
According to Deputy Minister of Economic Affairs Tseng Wen-sheng (曾文生), the country’s solar and wind power capacities respectively rose from 931 MW and 678 MW in 2016 to 5.71 gigawatts and 937 MW in February and are set to reach 20 GW and 6.9 GW in line with Tsai’s targets. While the solar sector continues expanding via floating, ground-mounted and rooftop systems, future wind power development will focus on offshore turbines as land-based units are nearing their saturation point. Formosa 1, Taiwan’s first offshore wind farm, came online in late 2019 off the northern county of Miaoli with 22 turbines and an installed capacity of 128 MW. Its launch marked a major milestone on the way to reaching the country’s offshore wind power goal of 5.7 GW by 2025.
Starting from 2026, ongoing offshore wind farm projects are expected to increase capacity by at least 1 GW per year over the course of a decade, Tseng said, adding that total related investment is likely to exceed NT$1 trillion (US$35.7 billion), with 20,000 jobs created. “Through cooperation with international wind power firms from Australia, Denmark, Japan and Germany, offshore efforts are giving rise to homegrown expertise and building up local supply chains,” said Tseng, who also serves as chief executive of the Green Energy Industry Promotion Center staffed jointly by the Ministry of Economic Affairs (MOEA) and Ministry of Science and Technology.
Countrywide Contributions
Taking the lead in growing the domestic energy sector are China Steel Corp. (CSC) and CSBC Corp., Taiwan, both based in the southern city of Kaohsiung. They are joined by over 75 local firms in setting up turbines, completing related marine engineering projects and creating transmission grids to connect offshore farms to the country’s electric power systems, with industry hubs for such activities located at Port of Taipei, Port of Taichung in central Taiwan and Xingda Port in Kaohsiung. Xingda is also home to MOEA-funded Maritime Technology Innovation Center, which is tasked with offshore wind power R&D, talent cultivation and personnel training missions in partnership with the Metal Industries Research and Development Center (MIRDC) based in Kaohsiung’s Nanzi District.
Wind-resistant drones are being developed to conduct inspections of offshore turbines. (Photo courtesy of Metal Industries Research and Development Center)
“By establishing specialized port areas to develop next-generation offshore wind power systems and components, we’re well on the road to becoming the nucleus of green energy in the Asia-Pacific,” MIRDC President Lin Chiu-feng (林秋豐) said. His institute plays a central role in promoting mechanical upgrades and providing innovative solutions such as drones able to withstand strong winds during turbine inspections.
Lin also heads Kaohsiung-based Taiwan Wind Industry Association, which consists of major domestic players like CSBC, CSC, Taipower and Swancor Holding Co. as well as local branches of foreign companies. Headquartered in the central county of Nantou, Swancor designed and erected the Miaoli site’s two initial 4-MW demonstration turbines in 2017. The move opened up previously uncharted regulatory territory, which the association has been helping its members navigate as they apply to set up and operate offshore wind farms. “We’ll continue working to facilitate communication between the government and businesses, strengthen international cooperation and bridge gaps in the industrial chain as we help shape the country’s new energy model,” Lin said.
Expanded Access
Another critical element of fostering Taiwan’s nascent green energy sector is ensuring a favorable business environment. In 2017, the Electricity Act was amended to allow renewable energy suppliers to sell and distribute electricity, paving the way for market liberalization after decades of dominance by Taipower. A revision to the Renewable Energy Development Act also took effect early this year that requires users consuming five or more megawatts of electricity to either purchase a certain amount from green sources or install green power generation facilities providing at least 10 percent of their energy needs. According to MOEA’s Tseng, the measure is expected to add 1 GW to Taiwan’s total renewable energy installed capacity.
An installation piece in the shape of a Formosan sika deer, with antlers that function as wind power facilities, stands at SSGESC near Taiwan High Speed Rail’s Tainan Station. (Photo courtesy of Shalun Smart Green Energy Science City)
Longtime energy reform activist Gao Ru-ping (高茹萍) sees the new regulation as a good start and hopes it will expand to cover more users in the future. She chairs the Taipei-based Taiwan Renewable Energy Alliance (TRENA)—established in 2015 after construction on the nation’s fourth nuclear power plant was halted the previous year—comprising like-minded members from the academic, business and civil sectors. The alliance seeks to promote greater energy self-sufficiency instead of the country continuing to rely heavily on imported energy sources. “This is a national security problem and also an economic issue because the imports take a large bite out of our growth results,” Gao said, adding that industrial competence in solar and wind power has the ability to fundamentally change the situation. “Taiwan is quickly catching up and becoming a leading force in the region,” she said. “Renewable energy not only holds enormous commercial potential but also benefits people in all corners of the country.”
TRENA, in addition to working as an advocacy group to influence government policymaking and offering consultation services, has been helping indigenous communities in remote areas set up solar power facilities. “These places often suffer from black outs, especially during typhoon season,” Gao said. “Renewables can generate electricity for emergency use at churches and community centers so residents can shelter locally instead of being evacuated.” Initial results are now operational at sites including the Piyaway tribe of the Atayal people in northern Taiwan’s Taoyuan City, the Lalauran tribe of the Paiwan in the southeastern county of Taitung and the Ita Thau tribe of the Thau in Nantou. With supplemental energy storage equipment, some of these communities are moving toward sourcing 100 percent of their energy needs from renewables.
Such initiatives demonstrate the great strides Taiwan’s green energy development has made in recent years. Ongoing projects aimed at reshaping how the country generates and utilizes electricity are coming to fruition as renewable technology matures and becomes a viable alternative to traditional methods. In the business sector, local firms are well poised to benefit from emerging opportunities given their high-tech competence and manufacturing prowess. As the nation turns away from nuclear power and sets out to reduce reliance on fossil fuels, domestic enterprises are leading the way toward a more sustainable future.
Write to Pat Gao at cjkao@mofa.gov.tw