Incentive For Solar (11)-Feed-In-Tariffs-Taiwan

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Greetings, My Fellow Solar Enthusiasts,

If you are in favor of renewable/CLEAN energy, please sign the petition page showing support for FIT/CLEAN Program at http://sunisthefuture.net/?page_id=1065 Thank you.

Keep in mind that we have already established the fact that Feed-In-Tariffs (FIT) is a very powerful tool to provide incentive for growth of renewable energy industry and a great way to transition into our future of renewable energy era while stimulating local jobs, opportunities, and economic prosperity, so long as we are cautious in implementing the optimal policy, at the optimal rate and optimal pace. It is also important to be clear, upfront, and preparing for the cost of renewable energy to decline. The positive aspect of not being in the forefront of the race is that we can learn a great deal from those who have been ahead of us. In this post, we will learn a valuable lesson from Taiwan and ask ourselves if circumstance changes should the government change regulations and if there is another way for the government to anticipate the change so to avoid dissatisfaction from consumers and investors.

In June of 2009, the Taiwanese Parliament greenlighted the Renewable Energy Development Act and established Feed-In-Tariff policy that promotes solar PV energy system, requiring electric utilities to buy all the solar power available for sale at premium, government-set-prices via long-turn contracts. Government subsidizes the difference and electricity is fed into the grid. Business and home owners may be able to participate by installing solar energy systems on their roof tops. FIT is effectively encouraging investment in renewable energy by enticing investors and reducing market demand for traditional energy and fundamentally changes the future market  prices.  So late in 2010, in response to a drop in PV rates, Taiwan Bureau of Energy changed the rules, stating that the rate depends on when the project begins in operation rather than the rate when the deal/contract is signed. Since there is a discrepancy of about 30% between the rates of “when the project begins in operation” vs. the rate “when the deal is signed”, the profits would correspondingly decrease and therefore investors were very upset.  Should the government of Taiwan deny the high return that should  accompany the high risk while also discouraging renewables? Or is the government of Taiwan justified for the cost of solar energy have decreased considerably and the return on profit for investors on earlier rate would have been very high.  Taiwanese government’s argument is that investors’ profit should be reasonable and the decision also saves valuable budget funding.  What do you think?  Let’s take a look at this clip: http://www.youtube.com/watch?v=_ToIw7nwGOE

Posted by sunisthefuture-Susan Sun Nunamaker. sunisthefuture@gmail.com
Homepage: http://sunisthefuture.net http://sunisthefuture.com http://sunisthefuture.org
Homepage: http://sunisthefuture.net http://sunisthefuture.com http://sunisthefuture.org
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