Newly Amended Renewable Energy Development Act Promulgated, Ministry of Economic Affairs: Taipower Instructed to Amend Related Contracts accordingly, Allowing Newly Joined Industries to Switch between FiT and Direct Supply and Wheeling in the Future

The President promulgated the "Renewable Energy Development Act" yesterday (May 1st). According to Ministry of Economic Affairs (MOEA), green power was already liberalized in 2017 after the Electricity Act was amended and the industry could procure green power through direct supply or wheeling to meet green supply chain requirements. To further liberalize the green power market, Minister Jong-chin Shen of Economic Affairs convened a meeting with related agencies today, and decided that Taipower should quickly revise related contracts in accordance to the amended "Renewable Energy Development Act," so in the future, the newly joined industries could switch between the Feed-in Tariff (FiT) system and direct supply and wheeling system freely. Also, to satisfy the green power requirements of the industry, the Ministry will conduct a detailed inventory of supply and demand. At the same time, regarding existing contracts signed in the past, the Ministry will work out reasonable ways of termination, and provide clarifications on the details of implementation in the near future. Minister Shen made the following three instructions: First, since green energy demand may be driven by regulatory requirement, EIA commitment, green supply chain requirement or CSR, related inventory reports should be compiled in details. The Industrial Development Bureau shall quickly invite associations and unions of related industries, as well as companies, to carry out inventories on green power demand timetable and amount. Second, in terms of supply, Taipower should carry out comprehensive inventory on installed capacity and power generation based on when renewable energy providers sign contracts, connect to the grid, and obtain licenses, to ensure that industries can purchase needed green power at the time they need in the future. Third, Bureau of Energy shall formulate the scope and installed proportion and timeline of users that are required to have a certain share of renewable energy after the amendment of the "Renewable Energy Development Act,"inviting stakeholders and municipal governments to jointly devise comprehensive complementary measures for the establishment of a free-trade market of green energy. Spokesperson for Bureau of Energy, Ministry of Economic Affairs: Deputy Director-General, Chun-Li Lee Phone Number: 02-2775-7700 Mobile: 0936-250-838 Email: chunlee@moeaboe.gov.tw Business Contact: Director, Chih-Wei Wu Phone Number: 02-2775-7750 Mobile: 0922-339-410 Email: cwwu@moeaboe.gov.tw Media Contact: Section Chief, Yu-Hsuah Hsia Phone Number: 02-2775-7705 Mobile: 0910-668-295 Email: yhhsia@moeaboe.gov.tw