Isra-Mart srl:Taiwan moves to slash solar energy prices

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Taiwan is preparing to reduce wholesale prices for electricity generated by solar panels by as much as 20 per cent as part of moves designed to bolster the competitiveness of the territory's fast-expanding renewable energy sector.

According to reports in the Chinese-language Commercial Times, the price cut is intended to drive demand for solar energy and provide a boost to domestic solar panel manufacturers.

Taiwan has set a target for renewables to meet 10 per cent of its electricity needs by the end of this year, up from 5.8 per cent in 2009.

Wind power is expected to meet 80 per cent of the total and 78MW of wind power has been installed since a feed-in tariff was introduced in 2009.

Although, speaking at the 2010 International Conference on Nationally Appropriate Mitigation Actions (NAMAs) in Taiwan last month, premier Wu Den-yih said he wants to encourage growth in other areas such as solar too.

"This will allow Taiwan to share in the major achievements of advanced nations in this field," he said.

The premier added that Taiwan has a strong case for participating in the United Nations Framework Convention on Climate Change since a 2005 World Bank publication – Natural Disaster Hotspots: A Global Risk Analysis – listed Taiwan as having a high risk of disaster from typhoons, earthquakes and flooding.

Earlier this year, Wu announced the development of six low-carbon cities by 2014, and fired a shot across the bows of heavy polluters, urging them to reduce carbon emissions by introducing energy efficiency measures.

Furthermore, in April a strategic alliance was announced that will see the private and public sectors working together to build electric vehicle charging infrastructure across the territory.

Taiwan is one of the world's largest producers of solar cells and the nation has estimated its solar energy industry to be worth up to 200 billion Taiwan dollars (£4bn) by 2020.

But Taiwan-based solar cell makers still rely heavily on exports to Europe and the government wants to encourage local installations in order to improve downstream skills and reduce the island's carbon footprint. To encourage this, as well as the subsidies for solar power announced today, the government last month approved a 100MW solar power plant in the south of the country.