Taiwan
With a cumulative score of 2.12, Taiwan ranks number 6 among emerging markets and number 27 in the global ranking.
- Emerging markets
- Asia-Pacific
2.26 / 5
Power score
1.78 / 5
Transport score
Buildings score
Only 56 markets (28 emerging markets) are scored on the Buildings sector. See the full list on the methodology page.
Low-carbon strategy
Net-zero goal and strategy
Taiwan does not have a net-zero goal or strategy.
Nationally Determined Contributions (NDC)
Even though not among the parties to the United Nations Framework Convention on Climate Change, Taiwan passed its Greenhouse Gases Reduction and Management Law in July 2015, setting the region's 2050 emissions reduction goal to 50% of 2005 emissions level. In March 2022, Taiwan officially published its Pathway to Net-Zero Emissions by 2050, consisting of four key pillars: Energy Transition, Industrial Transition, Lifestyle Transition, and Social Transition.
Fossil fuel phase-out policy
There is no fossil fuel phase-out policy in Taiwan
Power
Power policy
The current administration, having called for a “nuclear-free homeland by 2025,” faced several challenges when getting re-elected in 2020. The government has stuck to its nuclear phaseout plan, but hopes to add 25 gigawatts of renewables. The share of renewables in power generation is targeted to reach 20% some years later (slower than the original target of 2025), while fossil fuel (mainly gas) will remain the key supplier in the electricity mix.
Power policies
Power prices and costs
Utility-scale PV on public land and developer-owned rooftop projects is sometimes determined through auctions organized by local governments. Other projects can receive feed-in tariffs. In the wind sector, 1.7 gigawatts of offshore wind projects were awarded through a tender in June 2018. The government in 2021 announced a new plan to add 15 gigawatts of new offshore wind capacity in 2026-35 via auctions.
Power market
Taiwan's electronics manufacturing and technology industries have in recent years initiated strong demand for clean energy. Taiwan Semiconductor Manufacturing Co. (TSMC) signed the island's first offshore wind corporate power purchase agreement (PPA) in July 2020. Before that, Google signed the island’s first corporate PPA with a 10-megawatt solar project in January 2019. In May 2020, eight power consumers and retailers purchased 110 gigawatt-hours of clean energy from five solar farms.
Installed Capacity (in MW)
Electricity Generation (in GWh)
Utility privatisation
Which segments of the power sector are open to private participation?
Wholesale power market
Does the country have a wholesale power market?
Doing business and barriers
Land is by far the major barrier for renewable project development. Local citizens may voice opposition to projects due to concerns over land rights, and environmental conservation, among other concerns, delaying if not preventing project construction. Government subsidizes all consumer power prices, mainly by setting low power prices, controlling their increases and letting Taipower (the only key utility) bear the additional cost of power supply.
Currency of PPAs
Are PPAs (eg. corporate PPAs and all other types) signed in or indexed to U.S. Dollars or Euro?
Bilateral power contracts
Can a C&I (Commercial and Industrial) customer sign a long-term contract (PPA) for clean energy?
Fossil fuel price distortions - Subsidies
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) down through subsidies?
Fossil fuel price distortions - Taxes
Does the government influence the wholesale price of fossil fuel (used by thermal power plants) up through taxes or carbon prices?
Transport
EV market
Taiwan legislated a target in 2017 to electrify all buses for government and public transit by 2030, to ban new internal combustion engine (ICE) two-wheelers from 2035, and to ban new ICE cars from 2040. To achieve that, the government provides upfront purchase grants and offers tax rebates for two-wheeler electric vehicles. The grant level is adjusted annually, with the 2021 rates up to 17,000 Taiwan dollars (including tax rebate). EVs are exempted from the annual vehicle license tax, currently until the end of 2021. At least three cities (Taipei, Taichung and Tainan) offer grants for new chargers installed in public or residential buildings.
EV policy
The government has yet to implement any substantive policy support in this sector.
Transport policies
Fuel economy standards
Does the country have a fuel economy standard in place?
Buildings
Buildings market
Taiwan launched a four-year energy efficiency program in 2017-20 to save 4.47TWh of electricity and lower power demand by 8.382TWh. The central government has mainly focused on government and school-building energy efficiency, energy saving diagnostics, power and public facility efficiency improvements, and expanding building retrofits. County-level governments support residential and commercial-building energy-efficiency improvements, mainly with an emphasis on lighting and air conditioning upgrades as well as introducing energy management systems in the service sector. Taiwan offers grants to energy-efficiency service providers on a project-by-project basis, with the current grant level at 4 Taiwan dollars a kilowatt-hour of electricity saved under a total cap of 10 million Taiwan dollars per project. Similar grants are available for upgrading lighting, air conditioning and energy management systems. Private banks, such as First Bank, offer special loans for energy efficiency improvements.
Energy efficiency policy
Does the country have a national energy efficiency plan?
Energy efficiency policy
Are there minimum energy performance standards for buildings?
Energy efficiency incentives
Is there access to loans or grants for energy efficiency measures (i.e. Wall or loft insulation or double glazing)?
Buildings policy
The government has yet to implement any substantive policy support in this sector.
Buildings policies
Additional insights
from BNEF
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