Increasing Investment Incentives: Review of Feed-in Tariffs and Tariff Formula Completed
Organization: Bureau of Energy, Ministry of Economic Affairs Publish Date: 2016-11-08 16:41
The Ministry of Economic Affairs (MOEA) hosted the 3rd meeting of the 2017 "Renewable Energy Feed-in Tariffs Review Committee" on October 4th, 2016. The Feed-in Tariffs (FITs) for large-scale onshore wind energy, water, biomass, and waste energy remain the same as the tariffs in the hearing. The FITs for solar photovoltaic (PV), small-scale onshore wind energy, offshore wind energy, and geothermal energy were increased in comparison with those announced at hearings. The FITs for PV increase by approximately 1.29%. In order to encourage the use of high-efficiency PV modules, a 6% markup will be given to keep the rates in line with those in 2016.
The 3rd meeting on October 4th was chaired by Deputy Minister of MOEA, Mr. Jong-Chin Shen. Many representatives from various public associations were invited to share their opinions. After obtaining public opinions in the hearing on September 20th, the review of FITs and tariff formula for 2017 was completed. The MOEA will follow "Administrative Procedure Act" to proceed on the notice and the promulgation works.
In terms of PV, considering suggestions from suppliers and observing the international modules prices and demand trends, the committee members reached a decision of not adopting the bidding mechanism for PV in 2017 and cease adjusting initial installation costs by taking decreasing international estimates into account while increasing FITs by approximately 1.29% in comparison to the rates announced at hearings. Furthermore, in order to encourage the use of high-efficiency modules, the markup is increased from 5% to 6% so that the rates can be kept in line with those of 2016.
In terms of small-scale onshore wind energy and offshore wind power, suggestions and data from suppliers were collected at hearings so as to adjust pricing parameters. The FITs are increased by 5.22% and 1.00% respectively in comparison to the rates announced at hearings. In terms of geothermal energy, while there are no practical commercial cases studies in Taiwan, the decision was made so that the FIT remained the same as the rate in 2016 in order to encourage investment in this field.
Furthermore, additional markups and incentives for 2017 are listed as follows:
1. For those who adopt the PV generation facility with high-efficiency PV modules approved by Bureau of Standards, Metrology and Inspection, MOEA, and for those who complete the construction works by deadline and who are in the category of the maximum allowance rates for 2017, the markup will be 6%.
2. In order to encourage the installation of PV in northern regions (including Taipei, New Taipei City, Keelung, Taoyuan, Hsinchu, Miaoli, Yilan, Hualian), the markup will be 15%.
3. For the ground and water-surface (floating) PV facilities with capacity higher than 10MW, if the construction work is completed prior to June 30th of the following year, the rate would be the same as the maximum allowance rate as listed one year prior to the year in which the construction work is completed.
4. For rooftop and other ground and water-surface (floating) PV facilities less than 10MW, the maximum allowance rate at the time of consent filing would apply for the first and the second type generation facilities with construction completed within 6 months of consent filing, or the third type generation facilities with construction completed within 4 months of consent filing.
5. The 15% markup for outlying islands will remain in effect throughout 2017.
The MOEA emphasizes that the renewable energy FITs calculated for 2017 are derived using parameters based on market transactions and data evidence. The rates are fairly calculated and ample investment incentives are offered so that a solid foundation for the development of domestic renewable energy industries can be established.
Spokesperson for Bureau of Energy, Ministry of Economic Affairs: Deputy Director-general, Ling-Hui Chen
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