Now that Penghu has moved beyond the debate on whether to start a casino industry, it is developing wind power to transform itself into a low-carbon archipelago.
The Penghu County Government will invite residents to become stakeholders in a community-based power company, with plans to erect wind farms capable of producing roughly 124 megawatts of electricity, enough for all of Penghu, with a surplus to sell for a steady income.
This public-private venture looks to restore dignity to the people of the islands and write a new page in local development.
In September 2009 the county government held a referendum on the establishment of casinos that was roundly rejected. A year later, the Executive Yuan approved a plan to make Penghu and other offshore islands into low-carbon regions, but failed to spell out concrete measures for how to achieve this goal. Penghu County thus elected to take the initiative in developing its natural wind power.
The county, after investigating wind resources, decided to construct 11 wind farms across the 125 square kilometers of the archipelago, installing wind turbines along the coastline first, with later expansion to include offshore facilities. This plan abandons casinos in favor of wind power and other low-carbon industries, for long-term, sustainable growth.
Statistics on Penghu’s wind conditions make local and overseas firms drool with envy.
Penghu has an annual average wind speed of 8 meters per second, which is double the level that Germany, a major player in wind power, suggests as worth exploiting. Mainland China and some European nations have even invested in wind power at sites with lower wind speeds.
For six months each year starting in October, Penghu’s strong northeast monsoon blows at more than 12 meters per second for over 70 percent of the time, making it a surefire candidate for wind power.
The Industrial Technology Research Institute estimates that for at least one-third of every year wind turbines could be generating electricity at full bore, with a capacity factor—the ratio of actual productivity in a year to the theoretical maximum—of nearly 45 percent, an efficiency level far exceeding that for major wind power producers such as Germany and the U.K., and almost twice the annual global average of 23 percent.
If this favorable environment is developed for wind power, it will be a goldmine for Penghu. According to the Renewable Energy Development Act, the government will provide incentives for constructing facilities, and will purchase the power produced at a guaranteed price.
At the same time, an undersea cable will link Penghu to the power grid on Taiwan proper, ensuring that it will have sufficient electricity even in summer when wind power is lacking.
The advantages do not end there. In the past, Penghu has relied on thermal power plants burning coal and petroleum, emitting considerable amounts of carbon dioxide. After conversion to wind power, carbon emissions will be greatly reduced, giving Penghu carbon credits it can sell on the international and domestic markets.
Wind power in the archipelago is projected to cut carbon emissions by 300,000 metric tons; at the current price of 15 euros (US$21.12) per ton, Penghu stands to rake in a substantial income.
More significantly, the profit from these carbon credits, obtained with local resources, will stay in Penghu, with resident shareholders earning dividends. The government shares will go into developing local infrastructure, once again to the benefit of residents.
The Penghu power company will not be the first county-run enterprise: three years ago, Miaoli County looked to the successful example of Kinmen Kaoliang Liquor Inc. to set up Miaonun Industrial Co. Ltd., tasked with developing wind and solar power, as well as carbon trading.
But in terms of a public-private corporation, the Penghu venture is undoubtedly a pioneer. In addition to paying cash for shares, residents can trade land for them. This direct participation and oversight of the firm will serve to bring the inhabitants of the county together in a united purpose.
This initiative, in addition to bringing in revenue, saving energy and reducing carbon emissions, will allow the people of Penghu to become self-reliant. If the development of wind power succeeds, the county will never again have to extend an open palm to the central government, or depend on the favors granted by the Offshore Islands Development Act.
In a fortuitous turn of events, the mania surrounding the popular film “Cape No. 7,” set in southern Taiwan’s Hengchun Peninsula, brought renewed pride to the people of that region. In contrast, Penghu’s revitalization through the deliberate, community-based promotion of low-carbon industry will not be a happenstance. (THN)
(This commentary originally appeared in the United Daily News March 28.)
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