(Press Release) Activating the Green Power Market: Type 2/3 Renewable Self-Generation Equipment Now Allowed to Sell to Renewable Energy Retailers

Reposted from a Bureau of Energy press release dated December 14, 2023

In light of domestic industry demand for green power, the Ministry of Economic Affairs (MOEA) states that, to meet international 2050 green power demand and help domestic businesses secure green power and stay competitive, the Bureau of Energy is now allowing power generated by renewable self-generation equipment to be sold to renewable energy retailers, who can then resell it to corporate customers.

MOEA notes that previously, renewable self-generation equipment — commonly known as Type 2 and Type 3 solar — had to first convert to a Type 1 (conventional utility) plant before reselling power. But this "Type 3-to-Type 1" conversion imposes many requirements meant for large-scale utilities on small and medium-sized plants. To make the regulations more practical and expand the scale of the green power market, the Bureau of Energy has issued an interpretation of the Electricity Act allowing renewable self-generation equipment (solar Type 2/3) to sell power to renewable energy retailers, who then resell it to businesses that need green power.

MOEA states that, based on Taipower data, as of October 2023, solar self-generation equipment with feed-in tariffs of NT$5.5/kWh or below generated about 8.6 billion kWh annually, and Type 3 self-generation equipment at NT$5/kWh or below generated about 7.1 billion kWh annually — both categories could now enter the green power market under this new policy.

MOEA explains that beyond activating the green power market, allowing renewable self-generation equipment to sell power to renewable energy retailers increases the direct supply of green power into the corporate purchasing market, which may also reduce Taipower's feed-in-tariff purchases and lower procurement costs. Going forward, MOEA will further strengthen the business standards and oversight of renewable energy retailers to ensure orderly green power market trading.