The Dilemma of Developing Renewable Energy in Taiwan-A Wind Power Case Study

• Main Authors: Sheng-Che Lin, 林聖哲
• Other Authors: 鄭欽龍
• Format: Others
• Language: zh-TW
• Published: 2012
• Online Access: http://ndltd.ncl.edu.tw/handle/56218818914073512297

碩士 === 國立臺灣大學 === 森林環境暨資源學研究所 === 100 === Developing wind power is an international trend and Taiwan maintains the potential to develop this energy. Taiwan initiated renewable energy development after 1998. However, because wind power has not yet achieved economic efficacy, government reward policies are required for wind power development. Because of the influence of various interest groups, the “Renewable Energy Development Act” was delayed for years. Therefore, we investigated governmental regulation of the renewable energy industry to analyze the rent-seeking activities and influence of wind power firms in the Legislative Yuan and the market. In April 2009, the German wind power firm InfraVest planned to withdraw capital because of the delayed Renewable Energy Development Act draft. The act was then passed in July 2009. According to the Renewable Energy Development Act, the Taiwan Power Company (Taipower) should purchase the power produced by renewable energy firms. However, InfraVest was not satisfied with the low rate of feed-in tariff established by the Bureau of Energy, Ministry of Economic Affairs and again proposed the withdrawal of capital. Therefore, we analyzed and compared the wind power generation costs of InfraVest and Taipower. The results showed that the initial capital costs and annual operating and maintenance costs of Taipower’s wind power generation were lower compared to those of InfraVest. The first reason Taipower had lower costs is that Taipower uses more than two power generation methods. Shared resources result in reduced power generation costs. The second reason is that Taipower has attempted to reduce power generation costs to influence the rate decisions of the Bureau of Energy. This establishes an entry barrier for other renewable energy firms. Therefore, potential competitors are excluded.