Projects

General government authorisation

What government authorisations must investors or owners obtain prior to constructing or directly or indirectly transferring or acquiring a renewable energy project?

Investors wishing to invest in renewable energy-based electricity generating enterprises are required to obtain prior approvals from the Electricity Industry Regulatory Authority to be designated by the MOEA, as well as the local government for the application for an electricity enterprise licence for the installation, transfer and procurement of renewable energy-based power generator facilities.

For the installation, transfer and procurement of renewable energy-based self-use power generator facilities, depending on the capacity of the generator and how the mandate of authorisation is carried out, approval is needed from either the MOEA or from local government.

Depending on the specific circumstances of each case, approvals from other competent authorities may also be required for the installation and transfer of renewable energy-based self-use generator facilities. For example, if the generator is installed on the ground, a written opinion is needed from the local land administration office; if it is installed on the roof, construction or other miscellaneous licences may be needed from the competent authority for buildings. Installation of generator facilities by electricity generation enterprises may trigger the requirement to conduct an environmental impact assessment; installation of offshore wind power generators may involve fishing rights, vessel safety and coastal development, thereby requiring respective approvals from local fishermen’s associations, the Ministry of Transport and Communications and the Ministry of the Interior.

Offtake arrangements

What type of offtake arrangements are available and typically used for utility-scale renewables projects?

As stated in questions 1, 4 and 6, TPC is currently the only electricity company in Taiwan that is obliged to offtake power from renewable energy under the FIT scheme. See question 6 for more details regarding the offtake arrangements.

Procurement of offtaker agreements

How are long-term power purchase agreements procured by the offtakers in your jurisdiction? Are they the subject of feed-in tariffs, the subject of multi-project competitive tenders, or are they typically developed through the submission of unsolicited tenders?

As mentioned in questions 6 and 25, the electricity retailing utility enterprise (currently being TPC) is obliged under law to purchase renewable energy wholesale under the applied FIT scheme. Nonetheless, offshore wind power companies that have won the right to develop on certain wind farms through the price bidding procedures held by MOEA in June 2018 will have to sell the power at their bidding price.

Operational authorisation

What government authorisations are required to operate a renewable energy project and sell electricity from renewable energy projects?

The establishment of an enterprise intending to operate a renewable energy-based generation business shall obtain the prior approval of the electricity industry regulatory authority to be designated by the MOEA. Additional prior approval is not required for the sale of electricity to TPC under the FIT scheme, or for the sale of electricity to renewable energy-based electricity sellers .

A renewable energy-based electricity generator enterprise may sell power to end users directly by installing connecting powerlines, or indirectly via TPC. Due to concerns regarding the quality of power from the generator enterprise, direct supply requires the approval of the regulatory authority for the electricity industry, while indirect supply does not.

A company limited by shares that has not yet installed generator facilities may apply for an electricity sales licence from the electricity industry regulatory authority to be designated by the MOEA to engage in renewable energy-based electricity sales business. The sale of electricity to users does not require prior approval. Currently, there are no renewable energy-based electricity sales enterprises in Taiwan.

Renewable energy-based generation enterprises intending to sell power through means other than the FIT scheme may sell the Taiwan Renewable Energy Certificate (T-REC). See question 5 for details.

Decommissioning

Are there legal requirements for the decommissioning of renewable energy projects? Must these requirements be funded by a sinking fund or through other credit enhancements during the operational phase of a renewable energy project?

Renewable energy-based generators and sellers looking to temporarily suspend their business or shut down their business altogether shall, within six months prior to the termination or suspension, submit a termination or suspension plan to the local government for approval. Once the local government approves, the matter will be transferred to the electricity industry regulatory authority to be designated by the MOEA for further review and approval.

Decommissioning of renewable energy-based self-use power generator facilities with a generating capacity of more than 500kW shall apply for the termination of registration from the same competent authority to whom the approval application was originally submitted.

Under the proposed amendment of the Regulations on Renewable Energy Power Generation Facility Installation, it is required to pay a certain amount of fee for recycling PV modules when applying for installing solar power generating facilities or replacing PV modules. The said amendment may come into effect in the near future.