TAIPEI (Taiwan News) — Taipower plans to make green electricity available to export manufacturers and other supply chain companies as the country works toward net-zero carbon emission targets.
Taipower will divide electricity into three categories: green, low-carbon, and general. The Ministry of Economic Affairs (MOEA) said each category will be priced based on associated carbon emissions, per CNA.
The MOEA said export manufacturers facing international carbon taxes will soon be able to purchase "RE5-10 low-carbon power" with a proportion including green power. The price for this electricity is higher than the current average industrial electricity price but is still internationally competitive compared to cross-border electricity prices and carbon emission coefficients.
According to the MOEA, green electricity pricing will still be constrained by the carbon tax manufacturers will face. In other words, the cost of purchasing low-carbon electricity cannot exceed potential carbon fees or manufacturers will have no incentive to purchase low-carbon electricity.
The MOEA is working with the Ministry of Environment (MOENV) so that low-carbon electricity is compliant with relevant domestic and foreign certifications. Currently, the average price of Taipower's wholesale purchase of renewable energy is about NT$5.2 kWh, with the average sale of green electricity at least as much.
Government officials have pointed out that if Taipower sells green electricity, its carbon emission coefficient will increase, potentially making it difficult for the company to meet the carbon emission requirements, leading to punishment and fines. There is talk of exempting Taipower from carbon emission requirements, though this loophole would undermine attempts to cut emissions and potentially leave them unchanged.
Analysts say Taipower has been tasked with reducing carbon emissions as well as ensuring a stable power supply for the country. To maintain a stable energy supply, high-carbon-emission electricity, such as coal-fired power, plus two nuclear power plants, continue to be in service.
As Taiwan moves to shut down its nuclear power plants, it may become even more difficult for Taipower to reduce carbon emissions. This makes the switch to renewable energy sources all the more important for government regulators and Taipower.
