Sustainable Development Goals
Abstract/Objectives
With a view to reaching the 20% renewable electricity(RE) target by 2025, a lot of efforts on policy and legislations have already been done. For instance, the Electricity Act of 2017 and Special Act for Forward-looking Infrastructure passed in the Parliament in 2017. However, these Acts are not very helpful for improving the RE development since 2016. so far, the RE only accounts for 5.61% falling behind the 20% target. To advance the RE development, the long await amendment of Renewable Energy Act of 2009 has been passed in mid 2019. The most prevailing discussion is focusing on the introduction of new renewable portfolio standards(RPS) to promote not only RE but also electricity storage. Compared with the RPS in US, UK and Australia, Taiwan’s RPS is unique in many ways. The most significant difference is to oblige the large electricity users, instead of electricity retailers in ordinary RPS scheme, which leads to the concerns of affecting international competitiveness of Taiwan high technology companies. The purpose of this study is to study the unique design of Taiwan RPS scheme and compare with the world’s main scheme. First of all, this study will survey the main RPS scheme around the world. Secondly, this study will investigate into the design of Taiwan’s RPS scheme. Finally, a very detailed comparison will be provided and the recommendation for Taiwan will be provided.
Results/Contributions

This research has been completed and published in prestigious SCI journal: (（Anton Ming-Zhi Gao, Chien-Te Fan, Jong-Shun Chen(2020), A Critical Review of the World's First Renewable Portfolio Standard (RPS) for Large Electricity Users in Taiwan: The return of the RPS?, Energy Strategy Reviews, Volume 32, https://doi.org/10.1016/j.esr.2020.100585.）)

Based on the analysis of this study, we find that feed in tariff (FIT) remains the key scheme in promoting RE development in Taiwan. It provides important economic incentives and investment security for renewable developers. Thus, most of the new renewables in Taiwan remains to be benefitted by this scheme, despite allowing free sale on the free market following the Electricity Liberalisation Act of 2017. However, the Taiwan type renewable obligation scheme can also benefit from FIT, because high-technology industries may adopt this advantage to transform themselves into renewable developers. Therefore, such a Taiwan renewable obligation may not be classified as a member of the regular renewable portfolio standards (RPS) family. Rather, it may be considered as a ‘transformed FIT’. Under such a scheme, rational economic large-electricity consumers are forced to develop a new business to become renewable developers, if possible. Large-electricity consumers can also earn an extra green reputation by participating in such a scheme. This can lead to a win–win situation, if the renewable obligation is appropriately designed. If the design is extremely rigid, it will impede the global competitiveness of Taiwanese high-technology industry. As expected, the government is hesitating to finalise its renewable obligation proposal, and all progress is delayed and stalled. Under the scenario of the US–China trade war, numerous Taiwan-based high-technology companies may be forced to return to Taiwan from mainland China. and particularly after the serious COVID-19 damage to the economy. An extremely rigid renewable obligation scheme may force them to move to other countries, such as Vietnam. Therefore, the RPSP is not only a component of the energy policy but also a broader industrial policy. The renewable obligation originated from the misunderstanding of local government regarding the RPS in Taiwan and under a highly unique political atmosphere in which no one challenged the wrong concept of the Premier. Therefore, there seemed to be little probability of providing a lesson to the rest of the world. However, this may provide an ‘innovative’ approach to both encourage and force large electricity users to participate in energy transition. Perhaps, this may provide a lesson for those FIT countries desiring to attract and mobilise an electricity-intensive industry to participate in energy transition and RE development.

Keywords
Renewable Energy Act of 2019TaiwanRenewable obligation on large electricity userselectricity storagerenewable portfolio standards (RPS)
Contact Information
高銘志
lst@my.nthu.edu.tw