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"Regulations for the Management of Setting up Renewable Energy Power Generation Equipment of Power Users Above a Certain Contract Capacity" to be Implemented on January 1, 2021
Date: 2021-04-01
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The Ministry of Economic Affairs (MOEA) promulgated the "Regulations for the Management of Setting up Renewable Energy Power Generation Equipment of Power Users Above a Certain Contract Capacity" (hereinafter referred to as "the regulations") today (December 31, 2020), which will be implemented on January 1, 2021. The key adjustment in the promulgated regulations is obligation deduction: the users' installed renewable energy generation equipment capacity can be deducted from their obligation, with a cap set at 20%; the "Early Bird Plan" is also applicable (e.g., fulfilling the obligation two years in advance can be applicable to 20% deduction). These two ways can be applied at the same time for a maximum deduction of 40%.

According to MOEA, the normative priorities of the regulations are the electricity users with contract capacity above 5,000kW. MOEA expects to establish enterprise green energy models. There will be about 300 enterprises that are subjected to the regulations, and these enterprises will need to fulfill their obligation within 5 years. MOEA estimates that the trading volume of the renewable energy market will be approximately 1GW. Rolling review of normative objects will be implemented biennially.

MOEA further explains that the regulations have been extensively discussed with the industry and the society. The key points are as follows:
1.Contract capacity benchmark: the users' average contract capacity in the previous year.
2.Deduction: capacity of renewable energy generation equipment installed at the sites of the normative objects using electricity before the implementation of the regulations can be deducted from the obligation; the deduction cap is 20% of the obligation as initially notified by the Bureau of Energy, MOEA.
3.Early Bird Plan: the two ways of deduction can be applied simultaneously with a maximum deduction of 40%.
4.The same legal person can fulfill the obligation comprehensively: if an enterprise has more than one electricity contract, it can sum up the capacity of different electricity contracts and plan the ways to fulfill the obligation comprehensively. Renewable energy generation equipment installed by the enterprise can generate electricity for self-use locally, which is not required to be wheeled to the contract electricity location.

MOEA emphasizes that the objects need to declare the "Obligation Fulfillment Plan" in the next year after receiving the notification, and report their fulfillment every year starting from the 4th year after receiving the notification. There are four ways the objects can flexibly fulfill their obligations: installing self-use renewable energy generation equipment, purchasing green electricity accredited by T-RECs, installing energy storage equipment, and paying the levies. Furthermore, to reward the enterprises that cooperate with the government's policy and install renewable energy generation equipment in early stage and fulfill their obligation in advance, the government offers preferential deduction ways, which are more flexible.

The draft of the regulations was first released on March 2, 2020. MOEA held seven meetings, and invited citizen groups, relevant guilds and associations, and representatives of the industries to discuss the principles of amendment. The second draft was released on August 26, 2020, and the regulations were finally promulgated on December 31, 2020.

Lastly, MOEA further emphasizes that, through promotion of installation of renewable energy generation equipment by large energy users, enterprises will be encouraged to fulfill corporate social responsibility, and encourage them to use more renewable energy to reduce carbon emissions of manufacturing processes. These measures will increase the environmental value and competitiveness in the international market of the products, and help the enterprises gain grounds in the international supply chain, earning benefits for the government, enterprises, and environment.

Spokesperson for Bureau of Energy, Ministry of Economic Affairs: Deputy Director-General, Chun-Li Lee
Phone: 02-2775-7702
Mobile: 0936-250-838
Email: chunlee@moea.gov.tw

Business Contact: Director, Chung-Hsien Chen
Phone: 02-2775-7770
Mobile: 0919-998-339
Email: ctchen@moea.gov.tw

Media Contact: Section Chief, Yu-Hsuah Hsia
Phone: 02-2775-7705
Mobile: 0910-668-295
Email: yhhsia@moea.gov.tw
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