Companies with stronger renewable energy commitments such as RE100 and 24/7 CFE are more likely to face surplus power issues.
As companies pursue renewable energy adoption and net zero targets, many have actively signed long-term CPPAs with developers. However, if actual electricity consumption declines because of capacity adjustments, or if renewable energy generation timing does not align with consumption patterns, companies can easily end up with surplus electricity.
In response, the government has proposed a mechanism to separate surplus electricity from renewable energy certificates. However, some academics argue the plan could force companies to pay twice for the same unit of electricity, making green power significantly more expensive.
Unlock the full article to explore three key takeaways:
- After signing corporate power purchase agreements (CPPAs), companies may end up with surplus renewable electricity if actual power consumption falls or generation timing does not match usage patterns. Excess electricity can only be sold back to Taipower at low prices.
- Taiwan’s government is considering a mechanism to separate surplus electricity from renewable energy certificates (RECs), under which excess power would flow back to the grid free of charge while developers retain the certificates for separate allocation. However, some academics warn the arrangement could force companies to pay twice for the same unit of electricity.
- Although Delta Electronics achieved RE100 in 2025, the company still had to purchase additional RECs because of surplus power issues, highlighting how the problem is already affecting leading corporate sustainability players.
