Venue: International Conference Hall, Tsai Lecture Hall(霖澤館), College of Law, National Taiwan University (1^st Floor)

Date: 12^th November, 2019

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The Risk Society and Policy Research Center (RSPRC) launched our flagship report this month (November 2019), 'Taiwan in Transformation: Initiating a Long-Term Energy Transition', to provide recommendations on the long-term strategies that Taiwan needs to undertake for its long-term energy transition. The report is the culmination of three years of scientific research conducted by our center's researchers. To launch the report, a media conference and forum was held on 11 November 2019 to introduce the report.

This five-part article compiles the summary points discussed at the media conference and forum.

Note: the summary for the media conference provides a snapshot of the presentations given at the forum. More detailed information is provided during the forum, which is covered in the other parts of this summary.

Media Conference of Report Launch

 

 

RSPRC Director Prof. Kuo-Hui Chang started the media conference by sharing that the report is focused on two aspects: energy transition, and a focus on the long-term, within which there are six key recommendations:

1. Adoption of participatory governance innovation
2. Internalization of external costs
3. Creation of a sustainable electricity market
4. Strengthening of local energy governance
5. Implementation of the industrial energy efficiency first principle.
6. Acceleration of greening the financial system

 

 

Our center Lead Principal Investigator Prof. Kuei-Tien Chou followed after Prof. Chang by highlighting the international trends that serve as guidance for Taiwan's energy transition, such as the European Green Deal proposed by new European Commission President, Ursula von der Leyen, in September 2019, which aims for the European Union (EU) to achieve carbon neutrality by 2050, and the 200 RE100 companies globally which have pledged to commit to using 100% renewable energy.

 

 

However, while other advanced countries have increased their renewable energy generation to more than 10% or 15% of their energy mixes, and even China, Japan and South Korea have all also grown faster than Taiwan in terms of renewable energy generation, Prof. Chou pointed out that Taiwan's generation still remains low at 5.65% (when accounting for hydropower).

 

 

Taiwan's renewable energy development has therefore stagnated because Taiwan has been stuck at the stage of brown economic development, and Taiwanese businesses still confine themselves to the 'five shortages' paradigm (of inadequate water, electricity, labor, land and skilled workers), resulting in them being over-reliant on a low cost model of low wages and low prices. However, Prof. Chou pointed out that economic development towards 2050 is being geared towards digitalization, such as in 3D printing and autonomous vehicles, and will also move towards low-carbon production. To this end, the adoption of renewable energy would therefore enable businesses to be more competitive at a global level. However, while the conversation globally has moved towards long-term renewable energy development, Taiwan is still stuck at debating over whether to use nuclear energy.

 

 

Even so, Taiwan's next presidential election will be held in January 2020 but the two presidential candidates have yet to adequately address the issue of renewable energy development, Prof. Chou said, and called on both presidential candidates to place a focus on energy transition. As it is, there have been major delays in Taiwan's efforts to reduce greenhouse gas and carbon reduction. There is also no one overarching regulation or mechanism that incorporates all the climate change-related regulations in Taiwan, which makes Taiwan's climate strategy a piecemeal one. Therefore, the enactment of a climate change act in Taiwan, and the setting up of a climate change cabinet under Taiwan's Executive Yuan executive branch, as well as an independent climate change committee involving representatives from different sectors under the Office of the President, and a citizen's climate conference, needs to be done.

To this end, the United Kingdom (UK)'s Climate Change Act is an example which Taiwan could follow, under which the Committee on Climate Change was set up. Since the enactment of the Climate Change Act, the UK has successfully undergone its energy transition, where coal-fired power has declined from 43.0% of the country's energy mix to less than 5% today, and the proportion of renewable energy has increased from about 5% to about 30% today.

 

 

However, the general public in Taiwan still does not have an adequate understanding of Taiwan's energy transition. A survey conducted by the RSPRC last year and another one conducted this year by the Taiwan Institute for Sustainable Energy (TAISE) showed that there were still respectively 67% and 61% of Taiwanese who did not know what Taiwan's main source of power generation was.

 

 

TAISE's survey also showed that 67% of Taiwanese believed that Taiwan will face electricity shortages. However, 73% of Taiwanese said that they would be willing to support a nuclear-free homeland if electricity adequacy could be assured.

 

 

Finally, Taiwan needs a framework to guide its energy transition, and to do so, energy democracy and energy justice is necessary to ensure that vulnerable groups will be protected as well. The RSPRC's survey has also shown that the public does not have adequate knowledge on Taiwan's energy transition, and it is therefore also necessary for the government to enhance its energy communication.

 

 

Our center Postdoctoral Fellow research head Dr. Chia-Wei Chao followed on from Prof. Chou and explained that Taiwan's current electricity price does not reflect the external costs of electricity generation in relation to climate change and air pollution. Dr. Chao explained that electricity prices in Taiwan have not changed for the past three years, and the average electricity price has remained at about NT$2.6 per kWh. However, based on conservative estimates, if the electricity price should take into account the external costs, it should increase by about NT$1.3/kWh or by 50% in 2018, and when seen in this context, coal-fired power would therefore not be cost effective and would actually be relatively expensive.

Dr. Chao added that for Taiwanese companies returning to Taiwan due to the US-China trade war, the government has not required for them to abide by any energy standards. He said that other than making it a prerequisite for returning companies to fall into the sectors under the '5+2 Industrial Innovation Program', these companies should also have to fulfill energy obligations. There should also be greater transparency and openness in information, and thus standards and controls for the production of steel, cement and petrochemicals should also be developed for companies. And finally, for returning companies which seek government subsidies, additional requirements such as stipulating that companies pay electricity prices which include external costs, should also be included as a means of holding them accountable to increasing their energy efficiency.

 

 

During the media question session that followed, Prof. Chou further elaborated that the presidential candidates should develop a vision for Taiwan's energy transition. He explained that it is not enough for Taiwan to be focused on specific energy or climate issues such as on energy reduction or carbon reduction. As he mentioned in his presentation, the current conversation on energy transition has been focused on whether nuclear energy should still be used, but the conversation needs to be broadened to include developing a longer term vision, and how Taiwan's economic structure needs to be transformed to cater for a low-carbon economy. In addition, while the RSPRC recommends the establishment of an independent climate change committee, this differs from current government committees because the RSPRC is calling for a committee which is independent, and which would provide oversight over the government. Prof. Chou added that Taiwan should set up a National Climate Change Board under the Execution Yuan similar to the Board of Science and Technology which could be tasked to coordinate the overall development of climate change policy in Taiwan. As energy transition will impact on the lives of Taiwanese and will therefore result in social resistance, a broad vision of energy transition should also entail developing public consensus on Taiwan's energy transition, but to do so, energy communication will be an important pillar as the example of other countries have shown.

Dr. Chao added that under the current administrative rule, there is an upper limit as to how much electricity prices can be adjusted, but he said the current ceiling of 3% is too low and the ceiling should be increased to 6%. In addition, the discussion for the next round of electricity price increase is due in 2020, which Dr. Chao said is paramount for Taiwan electricity price to be increased to the maximum limit allowable or to the proposed 6%, otherwise which if the increase is again postponed to several years later, this would become more challenging as electricity prices would then need to be adjusted by an even higher level. Dr. Chao added that while energy taxes should be implemented to reflect external costs to the environment, complementary measures such subsidies for high efficiency appliances should also be provided for low-income groups to reduce the impact for them.

 

 

 

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Links to Other Sections:

Part 2: Special Lecture 1: Taiwan in Transformation – Initiating a Long-Term Energy Transition

Part 3: Breakout Session 1: Innovation in Energy Governance

Part 4: Breakout Session 2: Implementation of the Industrial Energy Efficiency First Principle

Part 5: Special Lecture 2: Achievements and Challenges of Taiwan's Energy Transition

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