Implications of New Electricity Act on Taiwan Wind Energy Development

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