Taiwan improves PPA rules for renewables

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Taiwan’s Ministry of Economic Affairs (MoEA) said last week that it has amended regulations on green electricity purchases by industrial and large energy consumers.

The government said future PPAs will no longer need to cover the entire output of a single renewable energy plant. Instead, large energy consumers can buy portions of the electricity or purchase from multiple facilities, based on their power needs.

“The proportion of green electricity will increase again next year, and green electricity transactions will be more frequent,” the MoEA said in a statement. “In the past few years, due to the impact of the epidemic, war, and inflation, the progress of green deals has been lagging behind.”

The ministry also said that the country's PV capacity currently stands at 13.6 GW, which is 1.2 GW more than at the end of last year.

In 2023, the island deployed around 2.7 GW of new PV capacity, after installing around 2 GW in both 2022 and 2021. Taiwan's feed-in tariff scheme has mainly driven the country's solar market.

In 2023, residential installations with capacities ranging from 1 kW to 10 kW were given tariffs of up to TWD 5.8952 ($0.18)/kWh.

This year, the tariffs range between TWD 3.7635/kWh and TWD 5.7848/kWh for the first half of the year, and between TWD 3.7236/kWh and TWD 5.7055/kWh for the second half.

The MoEA said the country is expected to reach 26 GW of cumulative installed solar capacity by the end of 2026.

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