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

Taiwan has introduced a renewable energy credit (T-REC) system to enable private and foreign companies to procure renewable energy, breaking the long-standing monopoly of the state-owned utility, Taipower. This initiative supports Taiwan's goal to phase out nuclear power by 2025 and increase renewable capacity to 1012.5 GW by 2030. The T-REC framework offers four procurement routes, ranging from direct power purchase agreements (PPAs) to the purchase of certificates alone. While the market is currently a 'sellers market' due to high feed-in tariff (FIT) rates, the system provides a mechanism for global companies to manage supply chain sustainability.

• Taiwan aims to phase out nuclear power by 2025 and increase its renewable energy capacity to between 10 and 12.5 GW by 2030, a significant increase from the 1.6 GW of renewable capacity available in 2012.
• The T-REC scheme, launched in May 2017, allows nonutility buyers to procure renewable energy through four distinct routes: direct bilateral PPAs via private infrastructure (Route 1), direct bilateral PPAs via Taipower's grid (Route 2), procurement through renewable energy retailers (Route 3), and on-site generation (Route 4a) or the purchase of T-RECs without taking title to electricity (Route 4b).
• The Taiwanese government uses a feed-in tariff (FIT) program to stimulate the domestic industry, with initial rates set higher than wholesale power prices; for example, ground-mounted solar compensation was NT$4.55 compared to a peak electricity cost of 3.24 NT$ for large users in 2017.
• Cathay Financial Holdings became the first company to execute a T-REC deal in May 2017 using Route 4b, procuring certificates from the National Marine Biology Museum and the Industrial Technology Institute to lower its carbon footprint.
• The T-REC market currently faces challenges because it is a 'sellers market' where FIT rates are materially higher than wholesale power costs, potentially making it difficult for buyers to absorb the cost of procuring electricity alongside T-RECs.

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} }