News Briefing
  • To alleviate the plight of small and medium-sized enterprises unable to purchase green energy, it has been reported that Taiwan Power Company (Taipower) is considering becoming a green energy retailer. In the initial plan, Taipower intends to release 50 million kilowatt-hours of green energy from two solar power fields in Tainan's salt pans and Changhua's coastal industrial park. This green energy will be made available for purchase to businesses through the green energy trading platform.
Impact analysis
  • Obtaining green energy in Taiwan is a widespread issue and not an easy task. Although Taiwan Power Company (Taipower) has indicated that the currently proposed plan (with a base price of approximately 4.8 NT dollars per kilowatt-hour and contracts available in four options: 10,000/50,000/100,000/500,000 kWh increments, with each account limited to purchasing one package, and implementation possibly as early as 2024) is still under discussion, for proactive business owners, it is at least a feasible and promising option worth considering.
  • As pricing is a primary concern for businesses, based on the Levelized Cost of Electricity (LCOE) for various renewable energy sources published by IRENA, the global LCOE for 2022 generally ranges from $0.049 to $0.118 per kilowatt-hour (approximately 1 to 3.5 NTD). In this context, a rate of 4.8 New Taiwan Dollars still appears to have  profit potential. Furthermore, when comparing the renewable energy costs of      Taipower's self-generated electricity (conventional hydropower = 1.2 NTD, wind power = 3.42 NTD, solar photovoltaic = 3.36 NTD), the results indicate that the 4.8 New Taiwan Dollars pricing basis also has its rationality (not considering the average price of externally purchased renewable energy for Taipower, which is 4.75 NTD).
  • According to data from IRENA, the current price turmoil in Taiwan's green energy market is primarily attributed to supply and demand issues, as the long-term trend in renewable energy generation costs continues to decrease. If this situation were to improve in the future, from the perspective of the generation cost structure alone, theoretically, green energy prices should be within a range that businesses can afford.