Taiwan’s residential solar photovoltaic (PV) market: barriers, solutions and developmental prospects

• Main Authors: Karl Wendell Haby, 哈溫海
• Other Authors: Lin, Tze Luen
• Format: Others
• Language: en_US
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/79309676062137144010

碩士 === 國立政治大學 === 亞太研究英語碩士學位學程(IMAS) === 99 === The motivation for this research stems from an obvious contradiction in Taiwan’s approach to renewable energy – that while Taiwan remains a leading manufacturer of solar photovoltaics (PV) technology, and has adopted a feed-in-tariff (FIT) to promote solar PV and other renewable energies, market uptake (and completion of new projects) has so far been slow. In order to understand why, this thesis adopts two broad-based perspectives first identified by the International Energy Agency (IEA): (i) the Market Barriers Perspective provides a concise summary of the economics of domestic solar PV installation in Taiwan, specifically for the small scale (residential) investor contemplating grid connection under the FIT scheme; (ii) the Market Transformation Perspective identifies those factors (or actors) contributing to inertia in the renewable energy market in Taiwan. A final section in this thesis is given over to describing practical steps and policy approaches which may help boost solar PV (and other renewable) capacity in Taiwan. The results of this research point to a complicated and time-consuming applications process, repeated changes to relevant legislation, and a FIT which is set too low, as the primary reasons for the limited success to date in developing Taiwan’s small-scale (distributed) solar PV market. These difficulties are compounded by low electricity prices and a mutual dependency that has developed between the government, Taiwan Power, and large energy-intensive industries to avoid any upset to the status quo. In order to address these problem areas this thesis recommends immediately revising the FIT upwards (to at least NT$12.6 per kWh) in conjunction with the reinstatement of capital subsidies for small to medium investors. Removing administrative and procedural barriers is likewise deemed essential to fostering growth in the local solar PV market and establishing confidence in overall program. A Developmental Framework in the final section of this thesis describes some potential solutions to the more intractable problems slowing the diversification of Taiwan’s energy supply.