Application of German energy transition in Taiwan: A critical review of unique electricity liberalisation as a core strategy to achieve renewable energy growth

• Published in: Energy policy 2018-09, Vol.120, p.644-654
• Main Authors: Gao, Anton Ming-Zhi, Fan, Chien-Te, Liao, Chao-Ning
• Format: Article
• Language: English
• Subjects: Alternative energy; Ambition; Climate policy; Consumers; Electricity; Electricity liberalisation; Electricity pricing; Energiewende; Energy; Energy development; Energy policy; Energy transition; Environmental policy; Liberalization; Markets; Nuclear energy; Power; Prices; Renewable energy; Renewable Energy Development Act; Renewable resources; Taiwan Electricity Liberalisation Act of 2017; Transitions
• ISSN: 0301-4215; 1873-6777
• DOI: 10.1016/j.enpol.2018.01.010

Since the launch of the Energiewende (Energy Transition) in Germany in 2010, the concept influences on energy and climate policies around the globe. In May 2016, the Taiwan government began promoting renewable energy (RE) and phasing out nuclear power. However, it has not used the Renewable Energy Development Act, which is similar to the German Erneuerbare Energien Gesetz, as the main instrument. Instead, the new government has prioritised the revision of the Electricity Act and the introduction of liberalisation to allow RE producers to compete in the market and sell directly to end consumers. The main purposes of this article are to provide a critical review of this unique way of promoting RE under an energy transition and to determine the significance of Germany's energy transition strategy as a framework to promote RE development. The finding is that ambitious RE promotion schemes should remain at the core of energy transitions, while the liberalisation of electricity could play a supplementary role in an interconnected continental energy system to mitigate intermittency, which is one of the weaknesses of RE. Permitting expensive RE to be sold directly at the low market price of electricity would fail to give impetus to further RE development. •The first article providing critical review of the new Electricity Act of Taiwan.•Identifying a suitable policy mix for energy transition.•Identifying conflicts between energy liberalisation and RE promotion.•Providing an updated version of energy transition in many countries.•Renewable energy development should be the core of energy transition framework.