The Ministry of Economic Affairs last week kept most renewable energy feed-in tariffs (FIT) for this year unchanged and eased cuts to solar energy subsidies, highlighting the government’s determination to catch up after delays in solar panel installations amid rampant bribery scandals.
The adjustments in solar energy tariffs have been in the spotlight, as solar is one of the most widely adopted renewable energy technologies in Taiwan, compared with geothermal, marine energy, and biomass and waste-to-energy.
In addition, a series of scandals surrounding the bidding process and protests by local farmers over the past two years have raised the question of whether it is time to review solar subsidies. Some radical thinkers even called for the government to cut its support.
As the government is committed to its energy transformation policy and net zero carbon emissions by 2050, no hasty actions should be undertaken. The government’s latest FIT arrangements for solar are agreeable, as they extend to small and micro-scale rooftop installations. To encourage such installations, the ministry trimmed a mere 2.1 percent for systems with capacity of 10 to 20 kilowatts, eschewing the 6 percent cut its pricing formula mandated.
It kept the tariff rate for small-scale rooftop systems, those with less than 10 kilowatts of capacity, at NT$5.7055 (US$0.17) per kilowatt-hour to incentivize households to adopt sustainable energy systems.
The ministry’s actions are in line with new subsidies approved early last month of up to NT$300,000 for household installations as part of the central government’s efforts to stimulate demand. The project is expected to lead to NT$72 billion in additional solar investments and would benefit about 120,000 households.
Meanwhile, the FIT for ground-mounted solar projects are to be cut the most, at more than 5 percent, amid dwindling demand and their unpopularity among local farmers.
The new subsidy scheme is comprehensive, as usable land is so scarce in Taiwan. It takes a lot of effort to persuade land owners to participate in large-scale solar projects, even if they have land that is underutilized or even fallow. People also fear their property being devalued if ground-mounted solar systems are built near it.
When the data from last year are compiled, they are expected to show that overall installations plummeted more than 30 percent to 1.8 gigahertz from 2023, as local governments have become hesitant to grant construction permits for new projects after multiple cases of officials being found guilty of accepting bribes in exchange for bidding information.
Taiwan had about 12.8 gigawatts of installed solar capacity, according to 2023’s data, so 3.6 gigawatts is needed from last year and this year to hit the goal of 20 gigawatts in 2026.
The inertia at the local government level was unexpected, as most solar companies were eyeing a recovery from a 2023 slump after the Democratic Progressive Party won last year’s presidential election. A slowdown was unsurprising while the political landscape was being decided, as some of the presidential candidates had expressed doubts about the government’s renewable energy policy.
The latest renewable energy subsidies are just a small step in shaping Taiwan’s energy policy. More drastic measures and collaboration from all parties are required to reach the goal of boosting the contribution of green energy to 30 percent by 2030.
Taiwan faces complex challenges like other Asia-Pacific nations, including demographic decline, income inequality and climate change. In fact, its challenges might be even more pressing. The nation struggles with rising income inequality, declining birthrates and soaring housing costs while simultaneously navigating intensifying global competition among major powers. To remain competitive in the global talent market, Taiwan has been working to create a more welcoming environment and legal framework for foreign professionals. One of the most significant steps in this direction was the enactment of the Act for the Recruitment and Employment of Foreign Professionals (外國專業人才延攬及僱用法) in 2018. Subsequent amendments in
The recent passing of Taiwanese actress Barbie Hsu (徐熙媛), known to many as “Big S,” due to influenza-induced pneumonia at just 48 years old is a devastating reminder that the flu is not just a seasonal nuisance — it is a serious and potentially fatal illness. Hsu, a beloved actress and cultural icon who shaped the memories of many growing up in Taiwan, should not have died from a preventable disease. Yet her death is part of a larger trend that Taiwan has ignored for too long — our collective underestimation of the flu and our low uptake of the
US President Donald Trump on Saturday signed orders to impose tariffs on Canada, Mexico and China effective from today. Trump decided to slap 25 percent tariffs on goods from Mexico and Canada as well as 10 percent on those coming from China, but would only impose a 10 percent tariff on Canadian energy products, including oil and electricity. Canada and Mexico on Sunday quickly responded with retaliatory tariffs against the US, while countermeasures from China are expected soon. Nevertheless, Trump announced yesterday to delay tariffs on Mexico and Canada for a month and said he would hold further talks with
Taiwan’s undersea cables connecting it to the world were allegedly severed several times by a Chinese ship registered under a flag of convenience. As the vessel sailed, it used several different automatic identification systems (AIS) to create fake routes. That type of “shadow fleet” and “gray zone” tactics could create a security crisis in Taiwan and warrants response measures. The concept of a shadow fleet originates from the research of Elisabeth Braw, senior fellow at the Washington-based Atlantic Council. The phenomenon was initiated by authoritarian countries such as Iran, North Korea and Russia, which have been hit by international economic
RSS