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Taiwan has experienced delays in renewable energy projects, especially in offshore wind and solar power, the island's largest renewable energy sources. (Photo: Wikimedia Commons)
Taiwan's renewable energy market is at a pivotal point. With ambitious targets for decarbonization and energy transition, Taiwan is grappling with both progress and challenges in liberalizing its electricity market, increasing renewable energy capacity, and creating a more efficient market for green power. As Taiwan moves forward, understanding the trajectory of its renewable energy policies, particularly its feed-in tariff (FIT) scheme, will be crucial for businesses, investors, and policymakers.
This article highlights the key takeaways from a comprehensive report on Taiwan’s renewable energy market, focusing on the electricity market structure, renewable energy development and major challenges, especially from the feed-in tariff scheme. Additionally, the article will explore the international experiences from the UK and Germany to offer insights into potential future developments for Taiwan’s renewable energy market.
Taiwan’s electricity market and renewable energy development
Taiwan’s electricity market has undergone significant changes since the liberalization process began in the mid-1990s. The Electricity Act Amendment of 2017 marked a watershed moment in this transformation, opening the door for private sector participation in renewable energy generation and retail.
The law envisioned a two-phase liberalization process: the first focused on renewable energy, and the second, expected to include fossil fuels, was to be completed by 2025 but has since been delayed. Despite these advances, Taiwan's electricity market remains partially liberalized, with the state-owned Taipower still holding a dominant position in electricity transmission and distribution, particularly in conventional energy sources such as coal, gas, and oil.