The New Electricity Act in Taiwan completely overhauled the old electricity law and was passed in January 2017 with the goals of energy liberalization and transitioning to renewables. Some key implications of the act discussed include establishing an Electricity Regulatory Agency to oversee the electricity market and regulate utilities, restructuring Taiwan Power Company, setting reserve margin requirements, prioritizing connection and dispatch of renewable energy, establishing an electricity carbon emission factor standard, and allowing direct sales from renewable generators to large users. The act aims to transition Taiwan's energy supply away from nuclear power to renewable sources by 2025 through these regulatory reforms, but many details still need to be clarified through further regulations.

1. Implications of New Electricity Act on
Taiwan Wind Energy Development
新電業法對台灣風電發展之啟示
Po-Hsiang OU 歐博翔
Associate Attorney, Eiger 艾格峰外國法事務律師事務所
PhD, University of Oxford
www.eigerlaw.com

2. New Electricity Act (“NEA”)
A complete overhaul of the old Electricity Act was passed
by the Legislative Yuan and promulgated by the President in
January 2017
電業法修正案於2017年1月11日於立法院三讀通過，並於同年1月
26日經總統公布施行。
Energy Liberalization 電業自由化
+
Energy Transition (Energiewende) 能源轉型
‫װ‬
An ambitious and challenging goal!

3. Source:
BOE, MOEA
電業改革.tw

4. Key implications of NEA on renewables
• 綠電先行與非核家園 From nuclear to renewables in 2025
• 電業管制機關 Electricity Regulatory Agency (ERA)
• 台電廠網分離 Restructuring Taiwan Power Company
• 備用供電容量義務 Reserve margin requirements
• 電力開發協助金 Local community support fund
• 綠電直售 Direct sales and price flexibility of renewables
• 優先併網與傳輸 Connection and dispatch priority
• 電力排碳係數 Electricity Carbon Emission Factor
“Taiwan Electricity Act Amendment: Towards a Liberalized and
Green Energy Market” by Po-Hsiang OU

5. Electricity Regulatory Agency (“ERA”)
電業管制機關
• ERA as the major market regulator, “appointed” by the
Competent Authority (i.e. MOEA):
中央主管機關應指定電業管制機關，辦理下列事項：
一、電業及電力市場之監督及管理。
二、電業籌設、擴建及電業執照申請之許可及核准。
三、電力供需之預測、規劃事項。
四、公用售電業電力排碳係數之監督及管理。
五、用戶用電權益之監督及管理。
六、電力調度之監督及管理。
七、電業間或電業與用戶間之爭議調處。
八、售電業或再生能源發電設備設置爭議調處。(Art 3 NEA)
• 39 articles are linked to ERA (almost 50% of the NEA)!
• ERA = BOE? A new independent agency? Something else?

6. ERA: a more active role?
電業管制機關為[發電業及輸配電業籌設或擴建]許可之審查，
除審查計畫之完整性，並應顧及能源政策、電力排碳係數、
國土開發、區域均衡發展、環境保護、電業公平競爭、電能
供需、備用容量及電力系統安全。(Art 14 NEA)
• ERA’s regulatory discretion can include regional
development, land use, environmental protection,
competition, energy security, etc.
• Can (or perhaps should) ERA play a more active
role in coordinating with different local and
central authorities?

7. Reserve Margin 備用供電容量
為確保供電穩定及安全，發電業及售電業銷售電能予其用戶時，
應就其電能銷售量準備適當備用供電容量，並向電業管制機關申
報。但一定裝置容量以下之再生能源發電業，不受此限。該容量
除得依本法規定自設外，並得向其他發電業、自用發電設備設置
者或需量反應提供者購買。
前項一定裝置容量，由電業管制機關定之。(Art 27 NEA)
• New costs? Maybe…
– Only applies when selling to end users
– Does not apply to renewable generators “under a
certain installed capacity” (2,000 kW?)
– Can be prepared by buying demand response services

8. Connection and Dispatch Priority
優先併網與調度
輸配電業應負責執行電力調度業務，於確保電力系統安全穩
定下，應優先併網、調度再生能源。(Art 8 NEA)
• Priority for renewables, but “power system
security” can justify an exception
• There are similar rules in Renewable Energy
Development Act (再生能源發展條例)
• Who should build the offshore substation?
• What are potential remedies?

9. Direct Sales 直供與代輸
• 1 to 2.5 year (before Summer 2019)
• Detailed regulations required for further financial
analysis of ongoing projects
再生能源發電業設置電源線聯結電力網
者，得透過電力網轉供電能予用戶。
再生能源發電業經電業管制機關核准者，
得設置電源線聯結用戶並直接供電予該
用戶。
前項再生能源發電業申請直接供電之資
格、條件、應備文件及審查原則及其他
相關事項之規則，由電業管制機關定之。
(Art 45 NEA)
Option 1
Connect and sales directly to users
Option 2
Direct sales to users through
grid operator (Taipower)

10. Direct Sales 直供與代輸
Option 1
Connect and sales directly to users
Option 2
Direct sales to users through
grid operator (Taipower)
• Does Option 1 make
sense for offshore wind?
• What is the transmission
cost for Option 2?

11. Electricity Carbon Emission Factor
(“Carbon Factor”) 電力排碳係數
• Carbon factor: “CO2 emissions per unit of electricity
generated during the process of power generation”
(電力生產過程中，每單位發電量所產生之二氧化
碳排放量。)
• Carbon factor standard: a type of “renewable
portfolio standard (再生能源比例標準, RPS)” based
on the idea of carbon factor.
• Carbon factor is also a legal basis for price reduction
in electricity transmission and auxiliary services.

12. Electricity Carbon Emission Factor
(“Carbon Factor”) 電力排碳係數
• An innovative RPS-type mechanism that combines
climate change law with energy law (but how does it
work exactly?)
• Setting up a market for Renewable Energy Certificates
(REC) and extra revenue for renewables?
公用售電業銷售電能予其用戶時，其銷
售電能之電力排碳係數應符合電力排碳
係數基準，並向電業管制機關申報。
前項電力排碳係數基準，由電業管制機
關依國家能源及減碳政策訂定，並定期
公告。(Art 28 NEA)
[輔助服務、電力調度費等]費用，得依電
力排碳係數予以優惠，其優惠辦法由中
央主管機關定之。(Art 9 & 10 NEA)
Function 1
A portfolio standard for
utility retailers
Function 2
A cost saving mechanism
for renewable generators

13. Other legal issues…
• Renewable Energy Development Act amendments
• Environmental Impact Assessment Act amendments
• PPAs (with Taipower and with users)
• Project finance
• JV, M&A and competition law
• Other regulatory compliance
• Negotiation and dispute resolution, etc…
• KEEP CALM and ASK EIGER!

14. Energy Liberalization and Transition
• Timing & prioritization
• Regulatory certainty
• Collaboration!
Po-Hsiang OU
ph.ou@eiger.law
www.eigerlaw.com