The Ministry of Economic Affairs (MOEA) has completed its 2022 renewable energy bulk purchase rate review and announced today (1/28), in comparison with the draft, the solar bulk purchase rate has been restored to two phases per year, and additional rates such as power grids and UHV have been enhanced. In addition, the rates for small hydropower generation with capacity lower than 2MW were also adjusted considering the impact of dry seasons.
In the solar energy sector, considering rising raw material prices and a substantial increase in cost at the end of 2021, the MOEA has offered an additional rate of NT$0.2245 per kilowatt-hour of electricity. However, when the draft 2022 wholesale rate was released, the industry believed the rate to be lower than expected. Not only was the rate lower than post-rate hike at the end of 2021, the wholesale purchase rate of solar photovoltaics was also adjusted from 2 phases per year to 3 phases.
The MOEA has also adjusted this, returning to two phases per year, but it stated that, compared with the fourth quarter of 2021, the average reduction in first phase wholesale rates for all categories of solar energy in 2022 is only 0.3%, a slight change.
The MOEA believes that the basic rate of rooftop solar in 2021 includes grid-connection engineering fees, and in 2022, the relevant fees are clarified, and an added rate method adopted. In order to have a semblance of correspondence between the wholesale rate setting method and the Taipower rooftop-type grid-connection project fee payment scale, the two categories of "no grid-connection project fee paid" and "grid-connection project fee paid" will be classified under the 20-100K scale in 2022.
In addition, the current policy also encourages the installation of small-scale rooftop equipment. For rooftop types of 1~20 watts and 20~100 watts, the first phase ceiling rate plus the grid connection project fee has also been adjusted to be identical to the rate during the fourth quarter of 2021.
Furthermore, the small hydropower generation rate has also been adjusted, though less than the 2MW portion. Compared with the draft, the wholesale purchase rate has been raised to NT$4.1539 per kilowatt-hour. The MOEA pointed out that, in order to reflect the impact of dry seasons in recent years, annual power sales parameters were adjusted appropriately, thus less than the rate appreciation for 2MW small hydraulic wholesale rates.
Wind power, geothermal power, biomass power generation, waste power generation, and ocean energy have also maintained at the same rates as were presented in the draft. Incentive mechanisms are also the same as in the draft, including the new indigenous benefit-sharing mechanism for geothermal and small hydropower and the inclusion of the Taitung area into the solar photovoltaic regional premium mechanism. In addition to the applicable rate provisions for photovoltaic combined with energy storage systems, other incentive measures in 2021 include outlying island premiums, tiered rates, solar photovoltaic high-efficiency module premiums, regional bonuses, etc.
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