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In response to the global imperative to mitigate carbon emissions, the government of Taiwan has established an ambitious objective of achieving ¡°net zero emissions by 2050¡±. The government has delineated key strategies, including the decarbonisation of the overall electricity supply. Specifically, the government aims for 60¨C70% of total electricity generation to come from renewable energy and 20¨C27% from thermal power generation using carbon capture technology.

The policy framework stipulates an installed capacity of 29 gigawatts (GW) of renewable energy by 2025, rising to between 40GW and 55GW by 2050, with a primary emphasis on offshore wind and solar power. Concurrently, the government is actively promoting the development of alternative energy sources, including geothermal, biomass, ocean energy and hydrogen energy. Furthermore, the Renewable Energy Development Act (REDA) was amended in 2019, and again in 2023, to enhance the legal framework supporting renewable energy initiatives, ensuring a stable power supply while addressing air pollution and reducing carbon emissions.

To meet the supply chain requirements and adhere to environmental, social and governance standards, and to address the demand for corporate electricity purchases, the government of Taiwan is advancing the deployment of green electricity. This initiative includes encouraging the sale and supply of green energy and establishing a green electricity trading mechanism, which encompasses amendments to the Electricity Business Act and the REDA. These amendments will facilitate the provision of electricity to end users by renewable energy generators or retailers.

Offshore wind power

In the context of offshore wind power development, the government has delineated the process into three phases: the demonstration phase (phase one); the potential sites phase (phase two); and the zonal development phase (phase three).

During phase one, two demonstration projects were developed between 2013 and 2021, resulting in an installed capacity of about 237 megawatts (MW). In phase two, the Ministry of Economic Affairs (MOEA) allocated grid capacity to 16 projects, which includes those developed in two stages, culminating in a total installed capacity of approximately 5.5GW. Nine of the 16 projects have achieved commercial operation between late 2023 and early 2025.

Regarding phase three, the government has set regulations for allocating an additional 15GW of offshore wind energy capacity, scheduled for commissioning between 2026 and 2035. Under these regulations, 9GW will be allocated across three phases (designated as R3.1, R3.2 and R3.3) to meet grid connection targets between 2026 and 2031, with the remaining 6GW set for commissioning between 2032 and 2035.

Through auction processes, about 3GW of grid capacity was awarded to five projects in R3.1, and an additional 2.7GW was awarded to another five projects in R3.2. The administration contracts between the government and each developer for R3.1 and R3.2 were signed in late 2023 and early 2025, respectively. The auction date for R3.3 will be announced by the government at a later stage.

From phase two, the government launched local content programmes requiring offshore wind developers to commit to engaging with and procuring products and services from local suppliers. The local content requirements became more complex and stringent in R3.1 and R3.2, covering various components including wind turbines, cables, electricity facilities, foundations, vessels and other local services.

In R3.1, the local content requirements are divided into mandatory and bonus items. For R3.2, the government allocated 120 points to each identified local item, and each developer participating in the R3.2 auction is required to commit to localised items totalling a minimum of 70 points.

However, following the submission of auction proposals by R3.2 developers in April 2024, the EU requested dispute settlement consultations at the WTO regarding Taiwan¡¯s local content criteria for offshore wind projects in July 2024. In November 2024, the EU and Taiwan reached an understanding concerning the WTO dispute over Taiwan¡¯s offshore wind auctions.

To address the EU¡¯s concerns regarding Taiwan¡¯s local content requirements, the government confirmed that no mandatory local content requirements will apply to R3.3 or any future offshore wind projects. For R3.1 projects, since the administration contracts have been signed by all R3.1 developers, they remain obligated to comply with their local content commitments as stipulated in these contracts. Regarding R3.2 developers, the MOEA issued guidelines to ease the review standards for relaxing local content commitments. Specifically, an R3.2 developer may, pursuant to the R3.2 administration contracts, apply to the MOEA for exemption from a local content commitment if the quantity or delivery schedule of locally produced or supplied products cannot meet the grid connection deadline set in the R3.2 agreement, expected to be the end of 2028 or 2029.

Solar power

Land is a critical factor in the development of large-scale solar projects. Following local practices, most ground-mounted solar project sites are located in non-urban areas. Under the Regional Plan Act (RPA), solar projects can only occur on land with permissible zoning and the required land usage permit, according to various usage restrictions outlined in the RPA and its regulations. If conditions are met, developers must apply for a land category and/or zoning change to proceed with ground-mounted solar projects. The government initially planned to reorganise land categorisation by implementing a new set of rules to replace the RPA, known as the Spatial Planning Act (SPA), which was expected to take effect on 1 May 2025.

However, to provide local governments and industries more time to adapt to the SPA, the Legislative Yuan amended the SPA in December 2024, postponing the functional zone regime until 30 April 2031. As a result, the original land conversion regime under the RPA will continue to apply after 30 April 2025.

To promote solar projects, the MOEA and the Energy Administration (EA) have supported aqua-solar and agri-solar initiatives, and the solar projects that incorporate battery energy storage systems (solar BESS projects) in the past two years. For aqua/agri-solar projects, there are two main challenges:

1. 1. due to certain government restrictions, project companies with majority foreign ownership must collaborate with local land management consultants to obtain and maintain the land usage permit; and
   2. the generation project company must ensure that fishery or agricultural production continues alongside the operation period of solar projects.

Regarding solar BESS projects, the MOEA and the EA will issue annual guidelines for bidding on these projects. The government offers two key incentives to encourage the development of solar BESS projects. First, there are differentiated tariff rates for power discharged by the BESS compared to that generated by the solar project, with more favourable rates applied to the BESS. Second, successful bidders for grid capacity associated with the BESS may opt to develop a new project with priority rights, equivalent to the capacity of the BESS.

The MOEA will continue to secure land through inter-agency collaboration while increasing installation capacity by pursuing a three-pronged approach:

1. 1. Government-to-government co-ordination mechanism. The MOEA will establish communication channels between central and local governments to reduce market entry barriers for developers;
   2. Rooftop projects incentive. A rooftop incentive mechanism will be introduced to reward small-scale projects, encouraging installations. For new large buildings, mandatory regulations will require structures with a floor area of 300 ping (991 square metres) or more to install solar projects; and
   3. Support and communication platform. A platform for application guidance and communication will be established, featuring a single-window advisory service, a management platform for large projects and a local communication platform.

Other new renewables

In light of the net zero carbon emissions target and the commitment to phase out nuclear power, the Executive Yuan and the MOEA are focused on maximising renewable energy sources, alongside offshore wind and solar projects.

From 2025 to 2035, new technologies will require immediate investment in areas such as hydrogen energy, geothermal energy and ocean energy.

For geothermal projects, the goal post of 2026 is to implement critical technologies like enhanced geothermal systems and advanced geothermal systems, as most geothermal potential lies at depths exceeding 3,000 metres.

In ocean energy, a demonstration site utilising medium-sized floats is expected by 2025. The plan also includes two hydrogen refuelling stations by 2025.

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