The Executive Yuan convened a press conference today to explain infrastructure projects involving aquatic environments and green energy, elements in the government's Forward-looking Infrastructure Development Program that will drive overall economic growth.
National Development Council (NDC) Minister Chen Tain-jy began by stating that the domestic investment environment has been lagging for years, with investment by government agencies and public sector enterprises showing negative growth while public infrastructure spending has gradually fallen from its 2008 peak. So going forward, the government will be promoting the NT$1 trillion (US$32.36 billion) infrastructure program to increase domestic investment momentum and unlock Taiwan's potential for overall economic growth.
Minister Chen then listed the five major elements of the program: safe and convenient rail services, water resource management in response to climate change, green energy construction to support environmental sustainability, digital infrastructure for smart spatial planning, and urban-rural infrastructure construction that enhances regional balance.
In the World Economic Forum's Global Competitiveness Report 2016-2017, Taiwan's infrastructure ranked 13th in global competitiveness behind countries like Singapore, Hong Kong and Korea, so there is much room for growth in this area. In the Networked Readiness Index of the same report, Taiwan was ranked 19th behind countries like Singapore, Korea, Japan and Hong Kong, continuing a downward trend from the past few years. This calls for strengthening domestic infrastructure and network construction, the minister said.
The program's goal is to address Taiwan's economic development needs for the next 30 years, the minister continued. To share resources more effectively and reduce regional disparities, a more convenient and comprehensive public transportation system is imperative, including rail infrastructure, major arteries, and optimized intercity traffic and mass rapid transit systems. To address climate change, transform the energy industry and become a nuclear-free nation, the nation must also create a resilient, sustainable natural environment and a green-energy and low-carbon society. And as lifestyles and industries are transformed by digital technology, the nation must enhance both digital infrastructure and applications to safeguard citizens' right to internet access, while alleviating regional disparities and diversifying urban and rural infrastructure.
Addressing green energy infrastructure issues, Minister without Portfolio Wu Tsung-Tsong said that Taiwan is currently focusing on solar power, wind power and the Shalun Green Energy Science City. Based on national infrastructure needs over the next 20 to 30 years, the government will review related laws and set up a one-stop window to attract domestic and foreign investors. Over the next 10 years, Taiwan's energy sector is expected to draw investments worth NT$3 trillion (US$97.09 billion), with the solar and wind power industries together attracting NT$1.8 trillion (US$58.25 billion) in domestic and foreign investments.
Minister of Economic Affairs (MOEA) Lee Chih-kung said the main objective in developing green energy infrastructure is to promote environmental sustainability, while also enhancing energy security and fostering an innovative and eco-friendly economy. The ministry will therefore focus on developing an innovative green economy, implementing green-energy finance, and promoting other economic measures.
To create a sustainable environment, the government is promoting a two-year solar power technology platform program that aims to increase total installed capacity to 20 gigawatts (GW) by 2025 (17 GW for ground-level systems, 3 GW for rooftop systems), Minister Lee said. The total installed capacity target for wind power is 4.2 GW (1.2 GW for land-based systems, 3 GW for offshore systems) by the year 2025, which will also include underwater piers and related facilities. The ministry will also set up a marine technology industrial innovation zone in Kaohsiung to assemble and manufacture offshore wind turbine related vessels, as well as an offshore wind power industrial zone in the Port of Taichung.
The Shalun Green Energy Science City project is designed to create an innovative green-energy industry ecosystem, with plans to construct common-use buildings, low-carbon intelligent environmental infrastructure, a green energy industrial technology testing platform, a regional energy storage equipment technology demonstration and certification program, and a third-party inspection and testing center to help investors evaluate renewable energy technologies. The planned construction will allow for an integrated promotional push that includes the required public financing and technological environments, as well as the necessary certification platforms.
Addressing the green energy issues, Minister Wu Tsung-Tsong said that Taiwan Power Co. is currently consolidating its green power generating facilities, as the nation's power grid has long been concentrated in densely populated areas. The state-owned enterprise now plans to build more solar and offshore wind power installations to supply remote locations, so an important part of this infrastructure program will be increasing power grid installations, including harbor and pier facilities needed for offshore wind power. Wu hopes Taiwan's green energy infrastructure will be sufficient to meet domestic needs soon, and even form a major green energy production base for Asia.
Executive Yuan Spokesperson Hsu Kuo-yung then said the government has set aside a special budget for aquatic infrastructure of NT$250.7 billion (US$8.1 billion), most of which will go toward new construction. These projects will focus on three concepts: "water and development" which aims to provide reliable water supplies and clean drinking water (including dredging reservoirs and recycling water); "water and safety," to prevent flooding; and "water and environment," designed to strengthen the relationship between people and the nation's aquatic environment.
MOEA Minister Lee then explained that "water and development" projects are designed to significantly reduce the risk of floods and droughts. The objectives are to develop new water sources, maintain the sustainability of water resources, and increase regular water supplies by 1 million metric tons per day and emergency supplies by 2 million metric tons per day. Projects already underway include subsurface water development projects, the Wuxi-Niaozuitan artificial lake in Nantou, a project combining the water resources of the Da-an and Dajia rivers in Taichung, and the Tianhuahu ecological reservoir in Miaoli.
Precipitation data from the past 10 years show that rainfall in Taiwan is unevenly distributed, so it is important to reallocate water using water catchments and interregional distribution schemes, Lee said. For instance, pipelines are being built to connect the Zengwen and Nanhua reservoirs, giving Tainan and Kaohsiung cities a backup supply system whenever there is a shortage. Offshore, water development projects for the Jinsha and Qianpu rivers are underway on the Kinmen Islands, allowing each region to develop its own water resources. Other plans include reservoir dredging and water diversion projects.
The objectives for the "water and safety" plan include improving protection for 200 square kilometers of flood-prone land, constructing 250 kilometers of locally managed levee revetments and storm sewers, cleaning 120 kilometers of centrally administered rivers and regional drainage systems, and completing improvements on 16 kilometers of sea walls. Examples include constructing the Amuping desilting tunnel at Shimen Reservoir, digging wells to support disaster preparedness and provide backup water reserve, strengthening conservation and management of reservoirs and catchment areas, and constructing a second raw water pipeline for Hushan Reservoir.
In the "water and environment" portion of the plan, the government aims to improve waterfront environments by promoting 88 riverbank landscaping and water habitat projects, and creating 420 hectares of accessible waterfront spaces. Examples include a nationwide program to improve aquatic environments, a project to improve water supplies to areas without running water, the second phase of a program to improve water supplies to offshore islands, promoting smart water management systems and water conservation technologies, a water recycling project, and a construction project to access deep sea water.