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Ministry of Economic Affairs,R.O.C.

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2019-03-18 15:50
Bureau of Energy, Ministry of Economic Affairs

The Ministry of Economic Affairs Held a Reviewing Committee on Feed-in Tariffs (FIT) Rates for The Renewable Energy Electric Power, and Completed The 2019 FIT rates for Renewable Energy Electric Power Reviewing; In Accordance With The Procedures of Fairness, Justice, Transparency and Rigor.

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The Ministry of Economic Affairs announced that the examination was completed on January 30th in accordance with the Renewable Energy Development Act. The overall FIT rates of the reviewing results were lower than in 2018. Under the examination, Solar PV differentiates the FIT rates in two phase rates in a year. The FIT rates in the first half of the year are between 4.1094 and 5.7983 NTD/kWh; the onshore wind of the 1 to 30 kW capacity is 7.8759 NTD/kWh, and the onshore wind of the 30 kW and above capacity is 2.5438 NTD/kWh; offshore wind is 5.5160 NTD/kWh (6.2795 NTD/kWh for the first 10 years, 4.1422 NTD/kWh for the second 10 years); biomass energy and other renewable energy maintain the 2018 level of rates.

The Ministry of Economic Affairs held the 5th 2019 reviewing committee meeting. The resolution of adjustment calculation in renewable energy FIT rates was as follows:
1. Solar PV
(1)In 2019, the new rate is divided into two phases, which balance the manufacturing capacity planning and the decentralized construction period.
(2)The 1-20 kW capacity does not consider future cost reduction trends in order to encourage people to set up solar PV by using their own roof.  The rest of the brackets and rates will decrease by 1.82% in the first half of the year and 3.64% in the second half without considering the factor of construction cost.
(3)The FIT rates of connected to the EHV Grid category (rooftop system of the 500 kW and above capacity, ground mounted system, PV floating system) has been added, which is about 0.4 NTD/kWh higher than the general category of FIT rates.
(4)The cost of the floating solar system is about 0.4 NTD/kWh higher than the ground mounted due to the extra cost to make a floating platform.
(5)In order to create an infrastructure of solar panel recycling, the estimation of recycling costs 1,000 NTD/kW is adopted with reference to current data from the international report.
(6)The reward system is as follows:
A.Considering the demand for the construction of the booster station in the solar PV practice, and using the capacity 10MW as a distinction, the rooftop system, ground mounted system and PV floating system to be validly extended the completion period to the end of December of the following year.
B.The remaining reward system (including green energy roof participation, high-performance module, regional addition, and outlying island addition) will remain the same as 2018.
2. Wind Power:
(1)In the small-scale of the onshore wind sector, the resolution is to maintain 30 kW as the district class interval in 2018 in order to encourage the industries to invest and to improve research and development.
(2)Large-scale of the onshore wind sector, increasing annual sales of electricity and guiding equipment and technology skill in order to fully utilize domestic land resources.
(3)The offshore wind power sector is based on cost data from international credible cases (including UK, Germany, Denmark, and other European practical cases) and considers the differences of domestic and international institutional (pre-planned survey costs, grid-connected costs). Differences in days of offshore work, development experience, underwater basic types, future cost reduction industry's development of necessary burdens (fishery compensation costs, decommissioning costs, and strengthening of power grid costs) and etc. According to the appraisal of installation cost and operation & maintenance cost in Taiwan's development environment, it is suitable for the FIT rates of Taiwan's development environment.
(4)Considering the elements of the willingness of domestic financial institutions participating in green finance credit and the future moral hazard of operation, the phased tariffs will remain the same for the year 2019, but narrowing the differentiation between high and low rates.
(5)The annual sales of offshore wind power: The draft is based on the 4MW single-machine scale. In order to reflect the power generation efficiency bring by the future technological advancement, the 8MW single-machine scale is used as the basis and set 3,750 kWh/kW.
(6)Financial expenditure control mechanism: the factors affect sea meteorological conditions in response to future climate change. The first controlling stage is 4,200 kWh/kW above, and the FIT rates are 25 percent off to 4.1370 NTD/kWh. The second controlling stage is 4,500 kWh/kW above, and the FIT rates are 50 percent off to 2.7580 NTD/kWh.

The Ministry of Economic Affairs stated that the 2019 reviewing committee will validate the various usage parameters in a fair, just, public and severity procedure. The extra groups and the reviewing committee examined relevant information in order to ensure the reasonableness of the FIT rates and confirm the evidence data. The total has been reviewed in 5 sessions of reviewing committees, 12 sessions separation meeting (4 sessions in the solar PV, 5 sessions in wind electric power, 3 sessions in biomass energy and other renewable energy) and 2 hearing conferences. At the same time, after the draft notice, this annual attracted big participation from various fields. The notice period and the hearing conference provided sufficient opinions and materials. After full discussion, we obtained common opinions and executed the resolution of this committee to make the 2019 FIT rates more appropriate.

Finally, the Ministry of Economic Affairs mentioned that the international price is affected by different factors such as the electricity industry system, the integrity of the development environment, and the developer's operating strategy. The reviewing committee will return to the actual cost as a basis for calculation, and reasonably set the suitable FIT rates for Taiwan's environment development.

The FIT rates of renewable energy electric power and the calculation formula in 2019 are all based on the actual market transactions or the data which can be corroborated. The fair and reasonable rate standards are examined, and the development trend of renewable energy technology is concentrated. Finally, the government will present a prudent attitude to deal with renewable energy electric power's FIT rates and build a good foundation for the industries of renewable energy in Taiwan.

Spokesperson for Bureau of Energy, Ministry of Economic Affairs: Deputy Director General, Chun-Li Lee
Phone number: 02-2775-7702, 0936-250-838
Email: cllee@moeaboe.gov.tw

Professional work Contact: Division Head, Su-Chen Weng
Phone number: 02-2775-7710, 0910-087-942
Email: scweng@moeaboe.gov.tw

Media Contact: Inspector, Yu-Hsuah Hsia
Phone Number: 02-2775-7705, 0910-668-295
Email: yhhsia@moeaboe.gov.tw
Attachment 1. The Feed-in Tariff (FIT) rates of Solar PV in 2019
Open Attachment 1. The Feed-in Tariff (FIT) rates of Solar PV in 2019.pdf (14.94KB)
Attachment 2, The Feed-in Tariff (FIT) rates of renewable energy (except solar PV) in 2019
Open Attachment 2, The Feed-in Tariff (FIT) rates of renewable energy (except solar PV) in 2019.pdf (15.94KB)