Taiwan’s Ministry of Economic Affairs Adjusts Solar FiT Regulations as Severe Pandemic Status Impacts Construction Progress

published: 2021-06-10 9:30 | editor: | category: News

The Ministry of Economic Affairs convened the “Approval Meeting for the Feed-in Tariffs of Renewable Energy” today (June 10th) in order to implement stable solar establishment amidst the increasingly severe COVID-19 situation, and approved solar projects, suitable for the FiT of the second half of 2021, to adopt the cap FiT of the first phase of 2021, as well as agreed to have project sites that have obtained the approval for alternatives between 2019 and 2020 extend the completion rate by another 3 months. 

The solar FiT is divided into two phases each year, and is differentiated according to capacity levels and classification, where the FiTs for the first and second half of 2021 are NT$3.79-5.67/kWh and NT$3.72-5.62/kWh respectively. However, the impact from the pandemic during the first half of the year, as well as the surge in solar materials, have drastically affected the progress of solar establishment. Solar module makers URE, TSEC, and Motech have released a joint statement on June 10th urging the ministry to increase the FiT. 

The Ministry of Economic Affairs commented that the Approval Meeting for the Feed-in Tariffs of Renewable Energy was conducted on the 10th to mitigate the market pressure and disperse construction schedule, taking into account how the level 3 alert in Taiwan that has lasted for almost two months (May 15th - June 28th) is impacting solar establishment and further impeding the achievement of the promotion targets. While placing considerations on the FiT system and the accomplishment of the installation targets, the ministry also hopes that operators are able to effectively configure construction schedules and recover installations successively, reduce the construction pressure, as well as maintain industry safety and quality. 

Considering how the severe pandemic status is regarded as a sudden event, and that the related postponement in construction is within the scope of force majeure, the ministry has approved those who adopted the FiT of the second half of 2021 to select the cap FiT of the first phase of 2021 on the basis of relevant legitimacy and rationality; it has also placed great emphases on the achievement of the promotional target, as well as a proper reflection on the market status and the maintenance of rational investment incentives, in order to conform to the requirements of the current status. 

The ministry added that this approval meeting also discussed about the extension for the deadline of  completion rate. There will be no extension regulations for projects that are completed in 2021 as they are eligible in adopting the cap FiT of the first phase. The approved alternatives for projects between 2019 and 2020 that have once again delayed due to the pandemic this year will be granted with a 3-month extension in the deadline of the completion rate taking into account the level 3 alert that has lasted for almost two months, and the ostracization in the planning of construction schedules after resumption of operation. The related projects will be incorporated into the approval meeting of 2022 for a further roll planned review if the severity of the subsequent pandemic status persists, and the level 3 alerts extends continuously. 

(Cover photo source: shutterstock) 

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