Taiwan Renewable Energy Certification (T-REC) Mechanism (2018)

Transcription

1 October 10 th, 2018 Taiwan Renewable Energy Certification (T-REC) Mechanism (2018) CHEN, Yenhaw Taiwan Renewable Energy Certification Center

2 T-REC Market Structure After the Electricity Act Opens up Renewable Energy Market Renewable Energy Equipment and Power Generation Verification Renewable Energy Power Generation Industry (Wind, Solar Electric, Biomass, Hydro from stream, and Geothermal) Wholesale Free Trade (Price is Not Fixed) Wholesale (Fixed Price) Transmission and Distribution Industry Renewable Power Generation Equipment for Personal Use/On-Site Pairing Request T-REC Intermediary Platform Submit Pairing Request Information T-REC Information Management Platform A 4B Renewable Electricity Retail Industry Public Electricity Retail Industry Direct Supply Wheeling Renewable Energy Users General Users On-Site Production Environmental Benefits Requesters Renewable Energy General Electricity 2

3 The Demand Scenario of Voluntary Renewable Energy Market in Taiwan According to the current T-REC applicants, the demand is coming from ICT industry and finance & insurance sectors. If the public services, ICT industry, and finance & insurance sectors increase 1% renewable energy usage each year, by 2027, there would be more than 10% renewable energy usage. Through the trend, we can estimate that Taiwan enterprises will increase 0.5 billion kwh renewable energy demand each year, which means that T-REC issuance could be increased by 500,000 each year GWh The Renewable Energy Demand of ICT Industry The Renewable Energy Demand of Finance & Insurance Industry 40.2 The Renewable Energy Demand of Public Services Estimated Total of Renewable Energy Demand

4 51 Renewable Energy Projects Accomplish data comparison 28 Projects Installed 29 Projects Electricity meter data is not transmittable 1 Project Uninstalled 7 Projects Disagree to install meters. 15 Projects Wind power projects: 3 (5.9%) Solar power projects: 48(94.1%) 4

5 FIT Price/Electricity price(ntd/kwh) Analysis of Taiwan Renewable Energy Price Competitiveness Onshore wind power has reach the normal electricity price. Some corporations have the competitiveness of choosing solar energy. FIT prices of onshore wind power and solar power have faced downward pressures 太陽光電屋頂型 Solar energy(roof (500 device 瓩以上 with ) more 躉購價格 than 500kW) FIT price 地面型 Solar energy(ground device with more than 500kW)FIT price 風力陸域躉購價格 Onshore wind power FIT price 平均電價 Average electricity price Estimated price interval if solar energy enters 2.56~3.5 NTD/kWh free market 2.6 ~3.6~ 3.9 (Price of solar power NTD/kWh from FIT auction) ~2.5 NTD/kWh(2025 price of offshore wind power from FIT auction) 1 0 The electricity price of 1001kW or above in non summer months is 5.03NTD/kWh. The electricity price of 1001kW or above in summer months is 6.41 NTD/kWh year Resources:Taipower

6 The Current T-REC Market Transaction (till September 28) Quantity In 2017, T-REC market had 5 transactions with 83 T-RECs. In 2018 (till now), T-REC market has 53 transactions with 1054 T-RECs. Total transactions: 58 Total T-REC transacted:1137 Price T-REC price(unbundle) range is from $ 34USD(1060NTD) to $ 74USD(2300 NTD) per REC. Note: The exchange rate is 1 USD to 31 NTD. 6

7 The Responsibility for Large Electricity Consumers to Use Green Power and Purchase REC The draft amendment of Article 12 Renewable Energy Development Act : If the contract capacity is above a certain amount(800kw), electricity consumer shall 1. set up renewable energy power generation equipment and energy storage above a certain capacity of the equipment in a suitable place, or 2. purchase a certain amount of renewable energy certificate. If large electricity consumers violet the previous regulations, it shall pay the deposit to the competent authority for the purpose of renewable energy development. The amended Article 12 will be approved in November. 7

8 The Estimation of Renewable Energy or REC Demand According to the data provided by Bureau of Energy, Ministry of Economic Affairs regarding large electricity consumer (greater than 800 kw) the total contract capacity is 23,402 MW (with the total of 4,800 households) From 2016 data, total power system peak capacity is 37,422 MW and the total power consumption is 255,381 GWh, we can estimate the total electricity consumption from the large electricity consumers is about 159,703 GWh. If large electricity consumers are requested to buy 1% extra green energy, the renewable energy demand will be approximately 1.6 billion kwh which is equivalent to 1.6 million T-RECs. (approximately 146 MW of solar power generation capacity). If large electricity consumers are requested to buy 5% extra green energy, the renewable energy demand will be about 8 billion kwh which is equivalent to 7.5 million T-RECs. (about 730MW solar power generation capacity) 8

9 Thank you! 9

10 Note1:Resources of EU s carbon right price- Note2:EU s Emission Factor data is from Covenant of Mayors, 2010,In 2017, Taiwan EPA announced Taiwan s emission factor data The exchange rate is 1 USD to 30NTD. REC Applied to GHG Management Value Calculation Cost of decreasing carbon EU Taiwan Carbon trade market, carbon right price every ton Note1 20(In 2019, the price might rise to 35 There s no carbon trade market in Taiwan, so there s no price data. Excessive emission penalty(usd/tco 2 e) USD (3620 NTD) 50USD(1500NTD) Electricity carbon emission factor(tco 2 e/mwh) Note Added-value of greenhouse gas benefit on each REC (tco 2 e) Every REC value relative to excessive greenhouse gas emissions penalty Every REC value relative to carbon right value buying from reducing the carbon trading Every REC s value to apply to GHG management Relative to paying extra fees to buy 1 kwh green energy USD (980 NTD) 6.5 USD (195NTD) 6.5 to USD (195 to 980 NTD) to USD (0.195 to 0.98 NTD) 27.7 USD (831NTD) non 27.7 USD (831 NTD) USD (0.831 NTD)

11 Possible Solution for Unbundle RECs to Enlarge T-REC Market Direct Supply Renewable Energy Equipment and Power Generation Verification Renewable Energy Power Generation Industry (Wind, Solar Electric, Biomass, Hydro from stream, and Geothermal) 2A Wheeling Wholesale Free Trade(Price is Not Fixed) 2B 3A Renewable Electricity Retail Industry FIT (Fixed price) 3B IPP (Fixed price) Transmission and Distribution Industry 5 Public Electricity Retail Industry Public Electricity Renewable Energy Generation Equipment 6 Renewable Power Generation Equipment for Personal Use/On-Site Pairing Request T-REC Intermediary Platform Submit Pairing Request Information T-REC Information Management Platform 1A 1B (Residual Mix) 4A 4B End Users Using Renewable Energy Power Generation Equipment Option General Users Renewable Energy On-Site Production General Electricity Environmental Benefits Requesters

12 Current T-REC Issuance 1. Until end of August 21, 2018, 32,674 T-REC have been issued. 2. Accumulative generation amount is 32,674,000 kwh of green electricity. Wind T-REC 28,021 Solar T-REC 4,653 12