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Article 1
For purposes of encouraging renewable energy use, promoting energy
diversification, improving energy structure, reducing emission of
greenhouse gases, improving environmental quality, assisting relevant
industries, and enhancing sustainable development of the country, this
Act is specially formulated.
Article 2
The competent authorities referred to in this Act are: the Ministry of
Economic Affairs at the central level; the municipal governments at the
municipal level; the county (city) governments at the county (city) level.
Article 3
Definitions of terms used in the Act:
1. Renewable energy: Refers to solar energy, biomass energy, geothermal
energy, ocean energy, wind energy, non-pumped storage hydroelectric power,
energy generated by direct use or treatment of domestic general waste and
general industrial waste, or other energy approved for sustainable use by the
central competent authority.
2. Biomass energy: Refers to energy generated from direct use or treatment
of vegetation, marsh gas, and domestic organic waste.
3. Geothermal energy: Refers to energy from soil, rock, steam or hot spring
below the natural surface of the earth.
4. Ocean energy: Refers to energy generated from the temperature difference
between waters, sea waves, ocean currents, tides, salinity gradient, or other
sources.
5.Wind power system: Refers to energy generated from wind power is
converted into electricity.
6. Offshore wind power system: Refers to energy generated from wind power
is converted into electricity with offshore wind farm installed in waters outside
the subtidal line and not exceeding the bounds of territorial sea.
7. Small hydropower: Refers to hydropower generated in ditches or the installed
capacity of the system is less than 20,000 kilowatts.
8. Hydrogen energy: Refers to energy generated from hydrogen produced
from decomposing water, from bacteria or algae decomposition or fermentation,
or from other sources of renewable energies for the purpose of energy use.
9. Fuel cell: Refers to a device that converts chemical energy generated by
electrochemical reaction from hydrogen and oxygen into electric energy.
10. Heat utilization of renewable energy: Refers to utilization of energy by
heat or fuel instead of power generation.
11. Renewable energy power generation facility: Refers to renewable energy
power generation facility ratified by the central competent authority pursuant
to regulations under Paragraph 4 of Article 4 except for facilities of non-small
hydropower facilities generating energy from burning waste directly.
12. Avoided cost: Refers to the average yearly cost of self-generating or
purchasing non-renewable energy power from other suppliers.
13. Renewable energy certificates (RECs): Refers to a certificate issued after
the issuing authority conducts verification of renewable energy power
generation facilities and their capacity.
14. Energy Storage facility: Refers to a facility for power storage and power
maintenance, including storage units, power conversion facilities, and power
management systems.
The subtidal line of offshore wind power system prescribed in Subparagraph
6 in the preceding paragraph shall be announced by the central competent
authority.
Article 4
The central competent authority shall consider the domestic climate, energy
demand characteristics, and the economic benefits, technological development,
and other factors of different renewable energies upon promoting renewable
energy power generation facility.
The renewable energy power generation facilities with the installed capacity
of more than 2,000 kilowatts shall be recognized by the central competent
authority. Those facilities with installed capacity of less than 2,000 kilowatts
shall be recognized by the municipal or county (city) competent authority.
Renewable energy power generation facility approved by the central competent
authority according to the regulations prescribed in the preceding paragraph
shall be applicable to the parallel connection and wholesale purchasing
provisions stipulated under this Act.
The regulations on the energy category, installed capacity, inspection method,
approval procedure and other relevant matters for compliance of the renewable
energy power generation facility in the preceding paragraph shall be stipulated
by the central competent authority.
Electricity enterprises may install self-use renewable energy power generation
facility with installed capacity of less than 2,000 kilowatts.
Article 5
When the installed capacity of self-use renewable energy power generation
facilities is less than 500 kilowatts, the facilities are not subject to regulations
governing the placement of a directorial engineer prescribed in Article 71
under the Electricity Act.
As for renewable energy power generation facility, unless otherwise stipulated
in the preceding paragraph, Article 4, 8, 9 and 14, the application for installation,
constructions, operation, supervision, registration and management are subject to
the relevant provisions under the Electricity Act.
The aforesaid constructions include design, supervision, installation, operation,
renovation, inspection and maintenance.
Article 6
The central competent authority may take into account the renewable energy’s
development potential and the impact on the domestic economy and stable
power supply in order to set the promotion objectives for renewable energy
and the percentage of each category and formulate and announce development
plans and initiatives for the next two years and by 2025; meanwhile, the promotion
objectives for the total amount of electricity generated by renewable energy power
generation facility by 2025 is set to be more than 27,000,000 kilowatts.
The municipal and the county (city) governments shall assist in evaluating the
potential for the development of relevant renewable energy in their areas
pursuant to the aforesaid plans and objectives.
The central competent authority shall review the categories of renewable energy
prescribed in Paragraph 1 in terms of the economic benefits, technological
development and relevant factors of different renewable energies.
The promotion objectives and schedule for heat utilization of renewable energy
shall be stipulated by the central competent authority depending on the
economic benefits, technological developments, and relevant factors.
Article 7
The central competent authority should establish a renewable energy
development fund in order to develop renewable energy. The sources of
income of the aforesaid fund are as follows:
1. An amount of fees calculated at a certain percentage of its retailing amount
of electricity generated from non-renewable energy charged from electricity
retailing enterprises;
2. An amount of fees calculated as a certain percentage based on the amount
of electricity generated by the self-use power generation facilities paid by
those who install self-use power generation facilities of non-renewable energy;
3. The budget allocated by following the budget processes; and
4. Other related income.
Regulations governing the collection, procedure, deadline, certain percentage,
certain installed capacity, and other relevant matters regarding the fund shall
be prescribed by the central competent authority.
The aforesaid fund in Paragraph 1 shall be used for the following purposes:
1. to subsidize renewable energy facilities;
2. to conduct the resources inventories, subsidize demonstration cases,
promote the use of renewable energy, and assist in setting up certification
institutions;
3. to subsidize the development of power generation and storage of renewable
energy;
4. to spend the fund on or subsidize the recognition and audit of renewable
power generation facilities in relation to this Act.
5. for other purposes related to the development of renewable energy approved
by the central competent authority.
The renewable energy development fund shall prefer subsidizing the renewable
energy power generation facility installed in indigenous areas.
The fees paid by the electricity retailing utility enterprise to the fund pursuant to
Subparagraph 1 of Paragraph 2 shall be in line with the formulae that calculate
the rates of electricity prescribed in Paragraph 1 of Article 49 under the Electricity
Act.
Article 8
When an operator of renewable energy power generation facilities puts in request
for connection to the power grid, Article 8 and 18 under the Electricity Act shall
be applicable. The technical regulations on parallel connection to the power grid
shall be drafted by electricity transmission and distribution enterprises and shall
be submitted to the central competent authority for approval.
In the situation in which an electricity enterprise connects to the power grid
according to the preceding paragraph, the costs of bolstering the power grid in
addition to the existing networks may be shared by renewable-energy-based
electricity generating enterprises and electricity transmission and distribution
enterprises. The cost-sharing mechanism shall be provided by electricity
transmission and distribution enterprises and shall be submitted to the central
competent authority for approval. The central competent authority may invite
relevant government agencies, scholars and experts, and organizations to form
a committee to review the cost-sharing mechanism.
When the installed capacity of renewable-energy-based electricity generating
enterprises and self-use renewable energy power generation facilities installed
is less than 2,000 kilowatts, the installers may independently or jointly set up
transformer facilities, install networks, and connect to the power grid. The
rights and obligations of jointly setting up facilities shall be reached through
negotiation between the installers. In case of any disputes, the regulations
prescribed in Article 19 shall apply mutatis mutandis.
The installer of renewable energy power generation facility shall install and
maintain the circuits connecting renewable energy power generation facilities
and power grid; the electricity transmission and distribution enterprises with
which its power generation facilities are paralleled to the installer’s facilities
shall provide assistance when necessary; the renewable energy power generation
facility installers shall bear the costs incurred.
Article 9
The central competent authority shall invite the relevant government agencies,
scholars and experts, and organizations to form a committee to validate the
wholesale purchase rate and such calculation formula for the renewable energy
power generation facility generated electricity, and when necessary, hearings
may be held in accordance with the Administrative Procedure Act prior the
announcement of the said rate and formula, and the aforesaid wholesale
purchase rate and calculation formula may be reviewed or amended in
considering the technical progress in power generation, changes in cost, goal
achievement and related factors of each type of renewable energy on an annual
basis.
The rate calculation formula in the preceding paragraph will be stipulated by
the central competent authority through integrated consideration for the
average installation cost, service life, operation and maintenance fees, annual
electricity generation capacity, fisheries compensation, electricity
development assistance fund, maintenance and decommissioning cost, remote
-sites, and related factors for each type of renewable energy power generation
facility in accordance with each type of renewable energy.
When renewable energy power generation facilities are installed in indigenous
areas, the weighed wholesale purchase rates shall be taken into integrated
consideration.
The electricity generated by renewable energy power generation facilities shall
be purchased by the electricity retailing utility enterprise at wholesale except
for direct supply, wheeling, private use, and reselling to the
renewable-energy-based electricity retailing enterprises prescribed under the
Electricity Act.
When the electricity retailing utility enterprise purchases electricity generated
from renewable energy at wholesale according to the preceding paragraph, the
enterprise shall sign a contract with the installers of renewable energy power
generation facilities, and the contract shall be submitted to the central
competent authority for future reference.
From the date this Act is promulgated and enters into force, the electricity
generated by an installer of renewable energy power generation facilities will
be purchased at the wholesale purchase rate announced by the central
competent authority as prescribed in Paragraph 1 when the installers sign a
contract with the electricity retailing utility enterprise according to regulations
prescribed in the preceding paragraph.
When the electricity generated from renewable energy for direct supply or
wheeling according to the Electricity Act is sold at wholesale according to this
Act, or when surplus electricity is sold at wholesale according to this Act, the
electricity rate announced at the time the renewable energy power generation
facilities start to run shall be applicable.
When an operator signs an electricity purchase and sale contract with an
electricity enterprise before the promulgation and implementation of this Act,
the electricity generated by its renewable energy power generation facilities can
be purchased at wholesale at the original rate.
Renewable energy power generation facilities under any of the following
circumstances shall be purchased at wholesale either at the avoided cost or the
rate referred to in Paragraph 1, at the comparably lower rate:
1. Prior to the promulgation and enforcement of this Act, enterprises already in
operation that have not entered into electricity purchase and sale contracts with
electricity enterprises.
2. Enterprises in operation for over twenty (20) years.
3. Enterprises who installed such facilities after the nationwide gross installed
capacity of renewable energy power generation facilities has reached the total
amount of electricity generated by renewable energy power generation
facilities as set forth in Paragraph 1 of Article 6.
The avoided cost in the preceding paragraph will be formulated by the
electricity retailing utility enterprise and submitted to the central competent
authority for approval.
Article 10
The cost of bolstering the power grid of electricity transmission and distribution
enterprises pursuant to Paragraph 2 of Article 8 and the cost of purchasing
electricity generated from renewable energy at wholesale of the electricity
retailing utility enterprise pursuant to Paragraph 6 of the preceding article shall
be in line with the calculation formula of the electricity rate and other rates
prescribed by the central competent authority according to Paragraph 1 of
Article 19.
Article 11
For renewable energy power generation facilities and energy storage facilities
with development potential, in the preliminary stage of technical development,
the central competent authority may provide relevant reward encouragement
within a certain period for the purpose of demonstration.
For cooperatives, civil power plants jointly established by the public of a
community, or renewable energy power generation and energy storage facilities
installed in indigenous areas, the central competent authority may provide
relevant reward within a certain period for the purpose of demonstration.
Regulations governing the aforesaid reward for demonstration shall be
prescribed by the central competent authority.
Article 12
In the event of new construction, expansion, reconstruction of public
construction or public buildings by government bodies (institutions), public
schools, state-run enterprises, the construction conditions in compliance with
the terms of renewable energy installation shall have priority installation for
renewable energy power generation facility.
The construction conditions in compliance with the terms of renewable energy
installation in the preceding paragraph will be stipulated by the central
competent authority in consultation with the central authority concerning
such matters.
When the chartered capacity on electricity consumption agreements signed
by the user of electricity exceeds a certain capacity, the user shall install on
their own or provide space to install renewable energy power generation and
storage facilities with certain installed capacity or purchase a certain amount
of electricity generated from renewable energy and a certificate; If the user fails
to take actions according to the aforesaid regulations, the user shall pay monetary
substitution to the competent authority for the purpose of the development of
renewable energy.
The aforesaid chartered capacity, certain installed capacity, certain amount,
categories of the renewable energy power generation facilities installed,
categories of storage facilities, payment of monetary substitution and
calculation formula, schedule and other relevant matters will be stipulated
by the central competent authority.
To be in line with the characteristics and planning of the local development,
the local governments may prescribe and implement stricter autonomous
laws and regulations within their jurisdiction than the aforesaid regulations.
Article 13
The central competent authority may consider reasonable costs and profits
for the following heat utilization of renewable energy and shall prescribe
regulations on subsidies and reward for heat utilization according to the
effectiveness of their energy contribution:
1. Heat utilization of solar energy.
2. Biomass fuel.
3. Other renewable energy heat utilization technologies with development
potential.
For the heat utilization in the previous Paragraph, such subsidy expenses for
the substituted portions of petroleum energy may be financed by the
Petroleum Fund under the Petroleum Administration Act.
Reward expenses for the exploitation of fallow land or idle land for agriculture,
forestry, animal husbandry to plant energy crops for producing biomass fuel
will be financed by the Agricultural Development Fund; regulations governing
such reward eligibility, conditions and subsidy methods, and schedule shall be
prescribed by the central competent authority in conjunction with the Council
of Agriculture of the Executive Yuan.
Article 14
For those renewable energy power generation facilities that exceed a certain
installed capacity determined by the central competent authority, the rights
acquisition, usage procedures and handling of the land required by such
renewable energy power generation facilities and power supply lines,
Article 38 to 44 of the Electricity Act shall apply mutatis mutandis.
For the installer of renewable energy power generation facility on a land
owned by indigenous people or in an indigenous tribe and on the public
land in a certain range of neighboring area, Article 21 of the Indigenous
Peoples Basic Law.
The term and the procedures for renewable energy power generation facilities
and power supply lines to lease needed public land shall be longer than the
effective duration of the electricity enterprise license, without subjection to
Article 43 of the National Property Act, the Forestry Act, Article 25 of the
Land Act, and limits regarding the term of lease and procedures prescribed
by local public property administration regulations.
Article 15
For the use or acquisition of land for renewable energy power generation
facility and relevant facilities for its power transmission and transformation,
the provisions relating to public utilities or public facilities under the Urban
Planning Law, Regional Plan Act and related laws and regulations shall apply
mutatis mutandis.
National property provided for installing renewable energy power generation
facility may appropriate a certain percentage of revenue to provide the local
municipal government or county (city) government without subjection to the
limits prescribed in Paragraph 1 of Article 7 of the National Property Act. The
range, certain percentage, procedures for payment, and regulations governing
the use will be stipulated by the central authority concerning such matters.
Renewable energy power generation facility and relevant facilities for its power
transmission and transformation installed in coastal zones shall be included in
the coastal management plan; the provision in Paragraph 1 of Article 31 in the
Coastal Zone Management Act shall be mutatis mutandis.
In the event of leasing national or public forest due to land use required by
renewable energy power generation facility and relevant facilities for its power
transmission and transformation, the provisions relating to public utilities or
public facilities under Article 8 of the Forestry Act shall apply mutatis mutandis.
For land dedicated to renewable energy power generation facility and relevant
facilities for its power transmission and transformation which are situated in
fishing port areas, the provisions under Article 14 in the Fishing Port Act
relating to general facilities of the fishing port shall apply mutatis mutandis.
Establishment of the burning type of biomass energy power plants should be
limited to industrial areas with the exception of electricity generated from
marsh gas power.
Article 16
Where construction or operation machineries, equipment, special means of
transport for construction use, training materials and such required components
imported by corporate legal persons for the construction or operation of
renewable energy power generation facilities are proved by the central
competent authority that such use is verified and not domestically manufactured
or supplied, import tariffs shall be exempted.
If devices imported by corporate legal persons in the preceding paragraph
are already domestic manufactured or supplied, after the central competent
authority proves the veracity of its use, with adequate guarantee, such import
tariffs may be paid in installments after one year, beginning from the date of
completion of the project.
Where the renewable energy power generation facilities for self-use imported
by natural persons are proved by the central competent authority that such use
is verified and is not domestically manufactured or supplied yet, import tariffs
shall be exempted.
In case where the imported goods are exempt from import tariffs or there is
payment of such tariffs by installments per the three preceding Paragraphs,
Article 55 of the Customs Act shall apply when a transfer of ownership or a
change in use occurs.
Regulations governing tariffs exempt or paid in installments referred to in
Paragraph 1 to 3 shall be prescribed by the Ministry of Finance in consultation
with relevant authorities.
Regulations governing application procedures for evidentiary documents and
the range of items and compliance matters for natural persons’ self-use of
renewable energy power generation facilities shall be prescribed by the central
competent authority in consultation with relevant authorities.
Article 17
Renewable energy power generation and utilization system related facilities,
depending on different facility characteristics, are exempt from application for
miscellaneous licenses in accordance with provisions under the Building Act
when its installed capacity, height or square footage is less than a certain scale.
The standard of installed capacity, height or square footage of facilities exempt
from application for miscellaneous licenses referred to in the preceding paragraph
shall be prescribed by the central competent authority in conjunction with the
central competent authority of building.
Article 18
When necessary, the central competent authority may require renewable energy
power generation facility installers to provide operation information of such
facilities and send employees or mandate professional institutions to carry out
the inspections; the aforesaid installers shall not evade, impede or refuse such
inspection.
Enterprises referred to in Subparagraph 2 of Paragraph 2 of Article 7 that are
equipped with self-use non-renewable energy power generation facility
exceeding a certain installed capacity shall compile its business conditions
into abbreviated monthly reports and further compile annual reports within
three months after the end of each business year to submit to the central competent
authority for recordation; the central competent authority may request such
enterprises to provide supplementary explanations or send personnel to carry
out inspections, to which the self-use power generation facility installers shall
not evade, impede or refuse to comply.
Electricity retailing enterprises and electricity transmission and distribution
enterprises in operation according to Paragraph 6 of Article 7 and Article 10
shall compile a report containing relevant information of the amount of electricity
generated from non-renewable energy, the amount of electricity generated from
renewable energy they purchase at wholesale, the cost of purchasing electricity
generated from renewable energy, and the cost of bolstering the power grid to
submit to the central competent authority according to the preceding paragraph. The
central competent authority may request such enterprises to provide supplementary
explanations or send personnel to carry out inspections, to which the self-use power
generation facility installers shall not evade, impede or refuse to comply.
The inspection methods and report format referred to in the preceding three
paragraphs shall be prescribed by the central competent authority.
Article 19
For disputes that arise between renewable energy power generation facility
installers and electricity enterprises, either party shall apply for mediation by
the central competent authority prior to initiating an action, to which the other
party shall not refuse.
The central competent authority shall invite scholars and experts as mediators
for the dispute referred to in the preceding paragraph.
A successful mediation shall take the same effect as a settlement in litigation; an
unsuccessful mediation shall seek arbitration or litigation proceedings.
Regulations governing the application, procedures and relevant matters for
mediation referred to in Paragraph 1 and 2 shall be prescribed by the central
competent authority.
Article 20
Under any of the following circumstances, the central competent authority shall
provide notice of improvement within a designated time period; enterprises that
fail to improve by the designated time period shall be imposed with a fine of
NT$300,000~NT$1,500,000 and will be ordered to make improvements once
again within a designated time period; enterprises that still fail to improve shall
be continuously penalized per each instance:
1. Failure to pay the fund in accordance with subparagraph 1 or 2 of Paragraph 2
of Article 7.
2. Failure to purchase electricity generated by renewable energy facilities at
wholesale in accordance with Paragraph 4 of Article 9.
Article 21
For violation of Paragraphs 1 and 2 or 3 of Article 18 where the enterprises
evade, impede or refuse an audit or inspection, the enterprises may be penalized
with a fine of NT$300,000~NT$1,500,000.
Article 22
For violation of Paragraphs 1 and 2 or 3 of Article 18 where enterprises fail to
provide and report information, fail to provide and report information on time,
provide and report false information or fail to cooperate by providing supplementary
explanation, the central competent authority shall provide notice of improvement
within a designated time period; enterprises that fail to improve by the designated
time period will be imposed with a fine of NT$200,000~ NT$1,000,000 and will
be ordered to make improvements once again within a designated time period;
enterprises still without improvement shall be continuously penalized according
to each instance.
Article 23
This Act shall enter into force as of the date of promulgation except for the
revision of Article 7 under the amendment to this Act on April 12, 2019 and
the deletion of Paragraph 1, 2, and 4 of Article 10 under the old Act; the date
for enforcement of the revision and deletion will be set by the Executive Yuan.
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