Red tape hampers green energy drive

Democratic Progressive Party (DPP) legislator Tien Chiu-chin, who once hailed the act as a pioneer in protecting the environment, blamed failure to implement the government initiative of renewable energy development on the contractual obstacles set up by the Ministry of Economic Affairs (MOEA).

Life Lai, head of the Solar Power Generation System Association of the Republic of China, said that among the tortuous processes private firms must undergo in order to install renewable energy equipment is filling out a 250-page contract and passing a review board consisting of five groups from Taiwan Power Company (Taipower).

The people must also pay for the solar energy equipment installation expenses in full before reselling the generated energy to Taipower. According to Lai, even with Taipower buying the energy, it will take buyers approximately 12 years to break even on installation costs.

The approved application rate for renewable energy is zero, showing now a clear consensus about the lack of interest in purchasing renewable energy equipment.

“It is stunning that since the law was enacted in July 2009, none of the six applications that were filed to seek government purchases have been approved,” Lai said.

Legislator Tien considered this a low point for Taiwan, a nation with one of the highest annual exports of solar batteries.

Tien said what began as an environmentally friendly push for green energy and power conservation has been complicated by the MOEA's stringent regulations. The MOEA should help the petrochemical industry advertise and promote renewable energy to the public, Tien said, adding that making people self-finance equipment installation is inadvertently deterring them from the initiative while strangling the alternative energy industry.

The number of local solar power generation equipment makers has fallen to about 36 from a peak of more than 200 before a global financial meltdown hurt the local economy in 2008.

Lai urged the government to renew focus on the Renewable Energy Development Act by simplifying the application process, and for some form of cooperation established between Taipower and renewable power companies.

Spokespersons from Taipower said it has many electricity purchasing contracts, including two using wind power and 53 with solar power. Taipower has also signed contracts with 15 renewable power companies in the midst of installing the power generating equipment.

A member of the Bureau of Energy under the MOEA said that contrary to the 250 pages in local reports, the contract has only around 10 pages of actual data that needs to be filled out. This information is general and uncomplicated, usually describing the size of the equipment and location on which it is installed, he added.

The energy bureau also clarified that the applicant review process by five groups is the responsibility of Taipower and urged the electric power company to ease up the procedure. The bureau also disclaimed the zero application rate, citing that the number was derived from outdated records.

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