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Private Sector Activities in

Domestic New and Renewable Energy

Technologies in Chinese Taipei

Asia-Pacific Economic Cooperation (APEC)

NEW AND RENEWABLE ENERGY TECHNOLOGIES

EXPERT GROUP MEETING - 26th Meeting

3 - 4 April 2006

Auckland, New Zealand

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I. Targets of Renewable Energy

II. Solar Thermal Energy

III. Solar PV Systems

IV. Wind Energy

V. Biomass Energy

VI. Future Perspective

OUTLINE

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Targets and Current Status of Renewable Energy

2005 2010

Current Status Targets

Year

Renewables Installed Capacity（MW）

Share of total(%)

Installed Capacity（MW）

Share of total(%)

1 Hydropower 1,911 4.26 2,168 4.22

2 Wind Power 23.9 0.05 2,159 4.20

3 Solar Photovoltaics 0. 94 0.00 21 0.04

4 Geothermal Energy － － 50 0.10

5 Biomass 561.7 1.26 741 1.44

Total 2,497.5 5.57 5,139 10.0

Target share for renewable energy of thetotal installed capacity

5.57% 10.0%

The renewable energy shall contribute 10% of the total installed capacity

by 2010.

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Solar Thermal Energy

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332.14Installation density

[m2/ km2]

111,315,000Accumulation

[m2]

10112,000Annual installationarea [m2]

RankingInstallation2004

332.14Installation density

[m2/ km2]

111,315,000Accumulation

[m2]

10112,000Annual installationarea [m2]

RankingInstallation2004

5,6042,827 2,085

1,315

62800*28,399

12963* 10300*5120* 4732*

2266*

1

10

100

1,000

10,000

100,000

Ch

ina

US

A

Jap

an

Tu

rkey

Ger

man

y

Iara

el

Au

stra

lia

Gre

ece

Bra

zil

Au

stri

a

Tai

wan

Acc

u.

of

Inst

all.

Are

a (1

,000

m2 )

1,312750

215 183112

11400*

800* 521* 400* 280*

1

10

100

1,000

10,000

100,000

Ch

ina

US

A

Tu

rke

y

Ge

rma

ny

Au

str

alia

Isra

el

Ja

pa

n

Gre

ec

e

Au

str

ia

Ta

iwa

n

An

nu

al I

ns

talla

tio

n (

1,0

00

m2 )

4425 22 13 9 7

252*

49*35*

16*

0

50

100

150

200

250

300

Isra

el

Cyp

rus

Tai

wan

Jan

pan

Au

stri

a

Gre

ece

Ger

man

y

Tu

rkey

Sw

itze

rlan

d

Den

mar

k

Inst

alla

tio

n D

ensi

ty (

m2

/ km

2 )

Source: IEA (2005); ESTIF (2005). Note: * Data for 2003 or prediction.

10th largest market in the world

11th largest country by inst. area

3rd largest country by inst. density

Solar Thermal Energy Utilization in 2004

Solar Thermal Energy

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( ) : manufacturer

3

44 (6)

15 (5)

5

10 (2)

40 (8)

22 (2)

2

9

6 (1)

9

1

4

3

1

金門縣

1

Solar Thermal Energy Industry

Assembly / manufacturing Company

Assembly

ManufacturerOwn

trademarkAgent

74 77 24

• A complete industrial chain exists

• Currently producing over 100,000 m2/yr of collector

• Turnover in 2004 of NT$ 1.1 billion (~US$ 32.4 million)

Solar Thermal Energy

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Current Status

• Total accumulation installation area: 1.31 × 106 m2

• Number of installation households: 310,000

• Installation rate: 3.91% (based on the amount of households)

• Incentive: Subsidy of NT$ 1,500/m2 (US$ 45/m2)

IndustryTotally 176 makers / dealers with NT$ 1.1 billion turnover (2004)

Target Total Installation of 2.15 × 106 m2 by 2010

Strategy• A complete industrial chain has been established

• Extending the incentive to building integrated and large-scale applications

Summary

Solar Thermal Energy

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Solar Photovoltaic Systems

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Solar PV Systems

Polysilicon Si Wafer Solar Cell PV Module PV system Ersol (Germany)

Evergreen Solar (US)

Solarworld (Germany)

Solon (Germany)

Apollo (Chinese Taipei)

TYNTEK (Chinese Taipei)

Tokuyama (Japan)

REC(Asimi) (Norway)

MEMC (US)

TOPCO (Chinese Taipei) (Agency)

Kyocera (Japan)

SAS (Chinese Taipei)

Wafer Work (Chinese Taipei)

GET (Chinese Taipei)

BP Solar (UK)

Sharp (Japan) ( Largest in the World )

Suntech (China)

Motech (Chinese Taipei)

SEC (Chinese Taipei)

Carmanah (Canada)

Conergy (Germany)

Sekisui Chemical (Japan)

Solartron (Thailand)

Phoenixtec (Chinese Taipei)

Chung Hsin (Chinese Taipei)

Q-Cell (Germany)

Sunpower (US)

SANYO (Janpan)

E-ton (Chinese Taipei)

DelSolar (Chinese Taipei)

Solar Tech (Chinese Taipei)

TS (Chinese Taipei)

Solar PV Industry in the World

Source: Business Next ( March, 2006)

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Industry Company Production

Polysilicon - 0

1. SAS 10 MW

2. Wafer Work 5 MW

3. Precision N/A

4. GET 25 MW

5. TOPCO N/A

Wafers

6. NICHING N/A

7. Motech 100 MW

8. E-ton 10 MW

9. DelSolar 30 MW

10. Solar Tech N/A

11. VTERA N/A

Cells

12. TS N/A

Industry Company Production

13. TYNTEK 5 MW

14. Newcoretech N/A

15. Apollo 10 MW

16. China Electric 3 MW

17. Taiwan Sun Energy 3 MW

Modules

18. Ebright 3 MW

19. SINONAR 3 MW Thin Films

20. WISDOM N/A

TOTAL 207 MW

Source: PIDA ( Jan, 2006)

Solar PV Production in Chinese Taipei (2005)

Solar PV Systems

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Current Status

• The value chain of PV industry has been formed in recent 2 years• The product value of PV industry for Si wafer, solar cell, module, and P

V system reached NT$ 6.5 billion ( US$ 200 million) in 2005• Total installed capacity: 0.94 MW

Industry

• Around 20 major companies involved PV industry• Motech is top No. 10 of solar cell producer over the world

(50 MWp in 2005) Shares of E-ton Solar Tech Co stood above NT$1,000 on the GRETAI St

ock Exchange on 13 March 2006 Taiwan Photovoltaic Industry Association (TPVIA): Sep 19, 2003

Totally 48 industry members

Target

The product value of PV industry is expected to reach NT$ 31.3 billion (US$ 972 million) in 2010

• Installation of 21 MW by 2010 Planning an innovative park, building a sustainable city

Strategy• Innovation in technology to reduce the manufacturing cost• Strengthen the infrastructure of PV industry

Summary

Solar PV Systems

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Wind Energy

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Wind Energy

Current installed wind power capacity

111.7 MW (Dec, 2005)

InfraVest GmbH (49.8 MW)

(Enercon)7.8 MW Chunan , Miaoli

(Enercon)42 MWDapeng , Miaoli

(GE Energy)30 MWDayuan Guanyin ,Taoyuan

(Largerwey (Zephyros))

8 MWTaichung Power Plant, Taichung

(GE Energy)4.5 MWTatan Power Plant, Taoyuan

(Enercon)2.4 MWChungtun, Penghu, Phase II (Taipower Co.)

(GE Energy)4.5 MW3rd Nuclear Power Plants, Hengchun

(Vestas)3.96 MW1st Nuclear Power Plants, Shihmen

Taipower Co. (53.36 MW)

(Vestas)3.5 MWAndante, Chupei (Cheng Loong Co.)

(Enercon)2.4 MWChungtun, Penghu, Phase I (Taipower Co.)

(Vestas)2.64 MW Mailiao, Yunlin (Formosa Plastics Co.)

BOE Demonstration Programs (8.54 MW)

InfraVest GmbH (49.8 MW)

(Enercon)7.8 MW Chunan , Miaoli

(Enercon)42 MWDapeng , Miaoli

(GE Energy)30 MWDayuan Guanyin ,Taoyuan

(Largerwey (Zephyros))

8 MWTaichung Power Plant, Taichung

(GE Energy)4.5 MWTatan Power Plant, Taoyuan

(Enercon)2.4 MWChungtun, Penghu, Phase II (Taipower Co.)

(GE Energy)4.5 MW3rd Nuclear Power Plants, Hengchun

(Vestas)3.96 MW1st Nuclear Power Plants, Shihmen

Taipower Co. (53.36 MW)

(Vestas)3.5 MWAndante, Chupei (Cheng Loong Co.)

(Enercon)2.4 MWChungtun, Penghu, Phase I (Taipower Co.)

(Vestas)2.64 MW Mailiao, Yunlin (Formosa Plastics Co.)

BOE Demonstration Programs (8.54 MW)

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Wind Energy

R&D Inst Industry Foreign company

Wind Energy Industry R&D Alliance (Since 2005)

~ from key component to wind turbine

Blade Design

AETCH

Tower

CSMC

Power System

TECO GroupLattice

Lih kang ind.

IDASWIND

ITRI / MSLITRI / EEL

Composites

CoTech

Rotor & Tower Integr. Design

Verification

MIRDC

NacelleControl System

United Ship Design & Develop. Center

Testing Platform

Chung Shan Inst of Sci &Tech

United Ship Design & Develop. Center

United Ship Design & Develop. Center

System Integration

MIRDC

Cooperation

United Ship Design & Develop. Center

Chin Fong Machine

Chin Fong Mach.

Nacelle & ControlBlade Design

AETCH

Tower

CSMC

Power System

TECO GroupLattice

Lih kang ind.

IDASWIND

ITRI / MSLITRI / EEL

Composites

CoTech

Rotor & Tower Integr. Design

Verification

MIRDC

NacelleControl System

United Ship Design & Develop. Center

Testing Platform

Chung Shan Inst of Sci &Tech

United Ship Design & Develop. Center

United Ship Design & Develop. Center

System Integration

MIRDC

Cooperation

United Ship Design & Develop. Center

Chin Fong Machine

Chin Fong Mach.

Nacelle & Control

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Wind Energy

Current Status

The total installed capacity of wind turbines has reached 111.7 MW by the end of 2005

Industry

• Around 10 component manufacturers

• Taiwan Wind Energy Industry R&D Alliance: 30 Dec 2005

• Taiwan Wind Energy Association: 10 Jan 2006

Target

• Wind energy capacity target by 2010: 2,159 MW

• Output in 2010: NT$ 12 billion (US$ 3.5 billion)

• Local associate manufacturers to be a wind turbine system supplier or a sub-system world supplier

Strategy

• To develop domestic technology for key components of wind turbines

• To supply components of megawatt-class wind turbines

• To build up domestic wind turbine system integration capacity

Summary

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Biomass Energy

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Biomass Energy

Biomass Power Generation Installed Capacity

457 MW MSW

1 t/hr RDF (treatment capacity)

21.8 MW

0.32 MW Biogas

0.79 MW

27.5 MW

4.13 MW Agricultural & industrial

wastes 33.71 MW

Total 545.25 MW

Note: Thermal utilization: 0.434 MKLOE/yr Source: ITRI (2005)

Biomass Power Generation in 2004

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Biomass Energy

First RDF-5 demo plant for MSW (Fengbin, Hualien)

Treatment capacity: 1,000 kg/hr MSW

Waste RDF

Potential for RDF utilization

- 15% of MSW converted into the RDF can be the substitute for 350,000 tonnes of coal approximately.

- The total of electricity generation can reach about 145 MW with an amount of carbon dioxide reduction of 980 thousand tonnes.

Densified Refuse Derived Fuel (RDF)

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Densified Refuse Derived Fuel (RDF)

Biomass Energy

RDF-5 Manufacture Plant• Teh Shue Resource Co., Ltd. (Nantou County)

RDF-5 Tech Licensed by ITRI in 2002

Feedstock: Paper reject mainly

Productivity: 20 ton/hr

RDF: Sold to paper industry for boiler’s fuel

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Biodiesel

Biomass Energy

• First biodiesel demo plant constructed in 2004 (3,000 kl/yr)

• Biodiesel demand and application

in 2006

1,700 and 800 kilolitres from waste cooking oil and energy crops,respectively

Demo program: Biodiesel used in garbage collection trucks

in 16 cities and counties (supported by EPA)

First biodiesel demo plant

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Biomass Energy

0

20,000

40,000

60,000

80,000

100,000

120,000

2004 2005 2006 2007 2008 2009 2010

YearP

rod

uct

ion

(K

L)

B1/B2

Green County (B1)

Demo Station

EPA B20 Demo

215~280 x 10370%300~400 x 103Energy Crops

TargetPercentagePotentialFeedstock

Overall Potential（kiloliter）

45~60 x 10330%150~200 x 103Waste Cooking Oil

265~340 x 103450~600 x 103Total

215~280 x 10370%300~400 x 103Energy Crops

TargetPercentagePotentialFeedstock

Overall Potential（kiloliter）

45~60 x 10330%150~200 x 103Waste Cooking Oil

265~340 x 103450~600 x 103Total

BiodieselMarket Trend

B1

B2

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Current Status

3,000 KL (kilolitres) yielded from waste cooking oil in 2005

IndustryProduction plants： Taiwan NJC, Gibson Chemical, and

Chant Oil

Target

• Biofuel Target (2005 National Energy Conf.)

Biodiesel: 100 thousand KL (2010) (B2 in all stations)

150 thousand KL (2015)

250 thousand KL (2020) (B5 in all stations)

• The product value of biodiesel is expected to reach

NT$ 3 billion (US$ 93 million) in 2010

Strategy

• Development of production technology for commercialization.

• Establishment of Green County Demonstration Program and promotion of B1-B2 supplied in all filling station by 2010

Summary - Biodiesel

Biomass Energy

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Accelerate the enactment of “Renewable Energy Development Law” to establish a sustainable environment.

Adjust the premium tariffs for renewable energy and rationalize energy prices of fossil fuels taking into account their external costs.

Remove the obstacles in grid connection and power transmission to promote the power generation from renewables.

Enlarge the domestic renewable energy market to encourage industry development and improve technology capability.

Improve renewable energy technologies to facilitate the accomplishment of the national targets.

Future Perspective

The Needs to Bloom the RE Industry

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Thank you for your attention.