Energy Law at Taiwan

Here is a comprehensive overview of Energy Law in Taiwan:

⚖️ Legal Framework for Energy in Taiwan

Taiwan’s energy law is focused on energy security, liberalization of the electricity market, environmental sustainability, and transitioning toward renewable energy sources. The legal system aligns with democratic principles and global climate goals.

🔹 Key Energy Laws and Regulations

Electricity Act (電業法)

Amended in 2017 to liberalize the electricity market.

Promotes renewable energy integration.

Allows independent power producers (IPPs) to sell electricity directly to users.

Taiwan Power Company (Taipower) is unbundled into generation, transmission, and distribution segments.

Renewable Energy Development Act (再生能源發展條例)

Promotes the development and use of renewable energy sources (solar, wind, biomass, geothermal).

Provides feed-in tariffs (FITs) and government incentives.

Sets targets, such as achieving 20% renewable energy in the electricity mix by 2025.

Energy Management Act (能源管理法)

Focuses on energy efficiency and conservation.

Imposes energy audits and efficiency standards for industries and buildings.

Promotes use of energy-saving equipment.

Greenhouse Gas Reduction and Management Act (溫室氣體減量及管理法)

Taiwan’s framework for climate change response.

Sets long-term emission reduction goals.

Encourages development of low-carbon technologies and a sustainable energy mix.

🔹 Main Institutions

Ministry of Economic Affairs (MOEA)

Leads energy policy planning and implementation.

Bureau of Energy (BOE) under MOEA

Oversees regulation, planning, and subsidies for the energy sector.

Monitors energy efficiency programs.

Taiwan Power Company (Taipower)

Former monopoly, now unbundled and partially liberalized.

Still dominant in generation and grid operation.

Environmental Protection Administration (EPA)

Regulates emissions and enforces environmental compliance.

🔹 Electricity Market Liberalization

The 2017 amendment of the Electricity Act initiated deregulation.

Large users can now purchase power directly from renewable energy producers or through Power Purchase Agreements (PPAs).

Grid access and competitive electricity sales are gradually expanding.

🔹 Renewable Energy Focus

Taiwan has committed to:

Phasing out nuclear power by 2025.

Increasing solar capacity to 20 GW and offshore wind to 5.6 GW.

Strong government support via subsidies, FITs, and public-private partnerships.

🔹 Energy Transition & Climate Goals

Strong push to:

Replace nuclear and coal with natural gas and renewables.

Enhance energy resilience due to geopolitical and import dependence risks.

Ongoing debates on nuclear energy revival due to energy security concerns.

🔹 Foreign Investment & Trade

Open to foreign investment in renewable energy (especially offshore wind).

Encourages foreign technology transfer and local partnerships.

 

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