Taiwan Makes It Easier for Global Companies to Procure Local Renewable Energy

Taiwan has introduced a renewable energy credit (T-REC) scheme to allow nonutility and foreign companies to procure renewable energy directly from projects, aiming to reduce scope 2 emissions and support a national target of 10–12.5 GW of renewable capacity by 2030.

• Taiwan has established a renewable energy credit system known as T-RECs (Taiwan-REC) to enable nonutility and foreign companies to procure renewable energy directly from projects. This system was supported by a January 2017 amendment to the Renewable Energy Development Act, which opened the renewable sector to private participation and ended the exclusive control of the government-owned monopoly utility, Taiwan Power Company (Taipower), over renewable energy procurement.
• Taiwan aims to phase out nuclear power by 2025 and increase renewable capacity to 10–12.5 GW by 2030. To achieve this, the government implemented a feed-in tariff (FIT) program to stimulate domestic industry. For example, in 2017, the compensation for ground-mounted solar was NT$4.55, which was higher than the peak electricity cost of 3.24 Taiwan new dollars (NT$) for large energy users.
• The T-REC system offers four procurement routes for nonutility buyers: Route 1 and 2 involve direct bilateral power purchase agreements (PPAs) where buyers take title to electrons via private or Taipower grid infrastructure; Route 3 uses retailers to manage T-RECs from third-party generators; Route 4a involves on-site generation; and Route 4b allows buyers to procure only T-RECs without taking title to electrons.
• Cathay Financial Holdings became the first company to execute a T-REC deal in May 2017 using Route 4b. The company procured certificates from the National Marine Biology Museum and the Industrial Technology Institute to lower its carbon footprint in response to investor expectations and the Carbon Disclosure Project.
• The T-REC market faces challenges because FIT rates remain significantly higher than wholesale power costs, creating a sellers' market. This may make it difficult for businesses to absorb the cost of procuring electricity alongside T-RECs, particularly if draft legislation mandates that high-energy users procure a portion of their load from renewable sources.

APA

RMI (2018). Taiwan Makes It Easier for Global Companies to Procure Local Renewable Energy. https://rmi.org/resources/taiwan-makes-easier-global-companies-procure-local-renewable-energy/

Chicago

RMI. Taiwan Makes It Easier for Global Companies to Procure Local Renewable Energy. 2018. https://rmi.org/resources/taiwan-makes-easier-global-companies-procure-local-renewable-energy/.

Wikipedia

{{cite report |author=RMI |title=Taiwan Makes It Easier for Global Companies to Procure Local Renewable Energy |date=21 March 2018 |url=https://rmi.org/resources/taiwan-makes-easier-global-companies-procure-local-renewable-energy/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2018taiwan, author = {{RMI}}, title = {{Taiwan Makes It Easier for Global Companies to Procure Local Renewable Energy}}, institution = {RMI}, year = {2018}, month = mar, url = {https://rmi.org/resources/taiwan-makes-easier-global-companies-procure-local-renewable-energy/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }