National Energy Transition Framework toward SDG7 with Legal Reforms and Policy Bundles: The Case of Taiwan and Its Comparison with Japan
Abstract
:1. Introduction
1.1. Sustainable Development Goals at the National Level
1.2. Taiwan’s Efforts to Implement SDGs and the Highlights of This Study
2. This Study
2.1. Preliminary Findings on the Relationships Between SDGs and National Energy Transition
2.2. New Electricity Act to Implement SDG7 and Promote the National Energy Transition
3. Energy Theory and Taiwan’s Status
3.1. Energy Justice and Its Challenges in Taiwan
3.2. Energy Management and Its Challenges in Taiwan
4. Methodology, Analysis Structure, and Data
4.1. Methodology
4.2. Energy Transition Analysis Structure
4.3. Data
5. Results and Discussion
5.1. The Main Revision to the Electricity Act and Its Policy Analysis
5.2. The New Electricity Act Is Not Enough to Create an Electricity Market
5.3. Taiwan’s Energy Transition Framework in the New Electricity Act Era
- (1)
- The stable supply aspect is strong because Taiwan’s government has not only designed an electricity pricing stabilizing mechanism (which uses more than 15% of the electricity reserve capacity rate, mandated by the Regulation Governing Electricity Reserve Capacity originating in the 27th article of the Electricity Act), but it has also entrusted the obligation for supplying electricity to public retailing electricity enterprises. Moreover, the TaiPower Company [61] has launched a long-term Power Supply Development Plan extending from 2018 to 2028. Furthermore, Taiwan’s Executive Yuan [62] reviewed the energy policy to confirm the percentage of more than 15% of the electricity reserve capacity rate after a referendum at the end of 2018. As a result, the electricity supply obligation (path development) is strong. However, the path development of the diversification of electricity supply, owing to the fair competition aspect or the go-ahead policy for green energy, is moderate. Moreover, there is a lack of a driving force for the communization of supply (path development: weak) from the energy democracy aspect without the mechanism for supporting community power plants or people’s power plants;
- (2)
- The fair competition aspect is weak, as the reforms taking place in the electricity enterprises have yet to see sweeping changes, and the independency and transitional capacity building of the control mechanisms for electricity enterprises are not yet strong enough. Moreover, the environmental regulations applied to the electricity carbon emission factor have yet to apply source management to electricity enterprises, which, in turn, means that in areas related to environmental protection environmental regulations (path development) remain weak and are incapable of promoting the transition of electricity enterprises and other fair competition aspects;
- (3)
- Developments in the area of environmental protection are weak, as Taiwan has yet to implement either a carbon trading or energy tax system. The environmental cost has also has yet to be suitably internationalized, which, in turn, affects the distributive justice of environmental risk [36,37], with a weak path development in the distribution of interests and risk. The Taiwanese government is in the process of working toward greater cooperation between the public and private sectors through the “Energy Transition’s white paper (at plan’s level under a policy)”, which identifies the formulation of an energy tax as vitally important in enabling the public to participate in the agenda;
- (4)
- The development of the environmental protection aspect is weak. Nevertheless, Taiwan began to implement the REC form of market subsidies in 2017, which have gradually replaced feed-in tariffs and enabled an improved distribution of interests. However, the market for RECs is still in its nascent stages, and the government is still in the process of establishing a more fully comprehensive market mechanism, which directly relates to weak path development in interest and risk distribution. Furthermore, the goal of a nuclear-free homeland was mandated to be reached by 2025 in the 95th Article of the Electricity Act. Although the referendum in the end of 2018 resulted in the revocation of this article [63], the goal of the nuclear-free homeland is still mandated by the Basic Environment Act;
- (5)
- The development of the energy democracy aspect is also weak. However, Taiwan was able to make the overall organization of electricity enterprises more flexible through the revisions made to the Electricity Act (i.e., the administrative authorities agreed to greater decentralization of energy management—for example, by allowing local government authorities to run private energy companies or energy cooperatives). However, due to the fact that the communization of the power supply (development aspect: weak) and the legal construction of the peoples power plants are both lacking, the principal recipients of the electricity feed-in tariff system are private enterprises with a certain level of capital rather than energy cooperatives aimed at developing the whole community, community power plants or social enterprises invested in by normal civilians.
5.4. National Energy Transition Correlated with SDG7
5.5. Comparison of National Energy Transition between Taiwan and Japan
SDG7 Relationship | Item | Taiwan | Japan |
---|---|---|---|
Energy Transition at the National Level | Amendment | Electricity Act (2017) | Electricity Business Act (2013–2015) |
Energy Transition at the National Level | Energy Mix | Electricity Demand(+2%/Year) Nuclear12%→0% (−1%/Year) Renewable5%→20% (+1%/Year) Coal- and Oil-fired 50%→30% (-2%/Year) LNG-fired32%→50%(+2%/Year) (From Year 2016 to 2025) [62,66] | Electricity Demand (+1%/year) Nuclear 1%→20%~22% (+2%/Year) Renewable10%→22-24%(+1%/Year) Coal- and Oil-fired 65%→29% (−3%/Year) LNG-fired 24%→27% (−0%/Year) (From Year 2016 to 2030) [67] |
Access to Electricity | Status | 100% (2016) [68] | 100% (2016) [69] |
Policy Bundle | Dividing into an Electricity Transmission and Distribution Enterprise (2023–2026) | Establishing Organization for Cross-Regional Coordination of Transmission Operators (2015) | |
Obligation for Electricity Retailing Utility Enterprise to Supply (2017) | Obligation for Electricity Retailing Utility Enterprise to Supply (2016) | ||
Access to Non-Solid Fuels | Status | Electricity from Coal-fired 46% (2016) [66] | Electricity from Coal-fired 25% (2016) [67] |
Policy Bundle | Project Report of Energy Policy Review for Response to the Result of Referendum (2019)/ National Energy Mix | Retailing from Non-fossil Fuels-based Power Ratio (2016) | |
CO2 Emissions from Fuel Combustion and Electricity Output | Status | 11.9 t- CO2 Per Capita (2015) [70] | 9.9 t- CO2 Per Capita (2015) [70] |
Plan | 0.529 Kg- CO2 Per KWh→ 0.394 Kg- CO2 Per KWh (–3%/Year) (From Year 2016 to 2025) [71] | 0.516 Kg- CO2 Per KWh→ 0.370 Kg- CO2 Per KWh (–2%/Year) (From Year 2016 to 2030) [72,73] | |
Policy Bundle | Electricity Carbon Emission Factor (2017) | Retailing from Non-fossil Fuels-based Power Ratio (2016) | |
Share of Renewable Energy in Total Final Energy Consumption | Status | 5% (2016) [66] | 10% (2016) [67] |
Policy Bundle | Project Report of Energy Policy Review for Response to the Result of Referendum (2019)/ National Energy Mix | Long-term Energy Supply and Demand Outlook (2015)/ National Energy Mix | |
REC (2017) | Non-Fossil Fuel Energy Certificate Program (2018) |
6. Conclusions and Policy Implications
Author Contributions
Funding
Conflicts of Interest
References
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Contents | Levels | SDGs | Meaning of Energy | Indicators |
---|---|---|---|---|
Sustainable Energy | Vision | SDG7 |
|
|
Energy Transition | ||||
Sustainable Energy Service | Agenda | |||
Decent Work | Goal | SDG8 | Improvement in Energy Efficiency | |
Economic Growth | Goal | |||
Industrial Transition | Goal | SDG9 | ||
Technology Innovation | Opportunity | |||
Goal | ||||
Sustainable Growth of Cities | Goal | SDG11 | ||
Climate Change | Goal | SDG13 | Energy-related Carbon Emission | Energy-related CO2 Emissions Per Capita |
Key Points in the Revision of the Electricity Act (2017) | Aspect | Degree of Aspect Development | Path | Degree of Path Development | Policy Bundle |
---|---|---|---|---|---|
Electricity Carbon Emission Factor; Legalized Agenda for Nuclear-Free Homeland | Environment-al Protection | Weak | Environment-al Regulation | Weak | Policy Guidelines for Energy Development (2017)/ Energy White Paper (2018; Draft)/ Energy Tax (on Planning) |
Distribution of Interests and Risk | Weak | REC (2017); Obligation for Consumer Plant to Setup Renewable Energy (2019) | |||
Electricity Industry Regulatory Authority; Revolution in Electricity Enterprise; Dispute Mediation Between Enterprises | Fair Competition | Weak | Diverse Supply | Moderate | The Second Revision of Electricity Act (An Unclear Policy) |
Public Services | Weak | ||||
Mechanism for the Stabilization of Pricing; Obligation to Provide Backup Capacity; Obligation for Electricity Retailing Utility Enterprise to Supply | Stable Supply | Strong | Obligation to Supply | Strong | Policy Guidelines for Energy Development (2017)/ Energy Security (A Developing Goal) |
Flexible and Legalized Organization of Electricity Enterprise | Energy Democracy | Weak | Communization of Supply | Weak | Policy Guidelines for Energy Development (2017)/ Energy White Paper (2018; Draft)/ Action plan for People’s Power Plant (2018; Draft) |
Self-Supply and Self-Consumption of Renewable Energy | Weak |
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Lin, M.-X.; Liou, H.M.; Chou, K.T. National Energy Transition Framework toward SDG7 with Legal Reforms and Policy Bundles: The Case of Taiwan and Its Comparison with Japan. Energies 2020, 13, 1387. https://doi.org/10.3390/en13061387
Lin M-X, Liou HM, Chou KT. National Energy Transition Framework toward SDG7 with Legal Reforms and Policy Bundles: The Case of Taiwan and Its Comparison with Japan. Energies. 2020; 13(6):1387. https://doi.org/10.3390/en13061387
Chicago/Turabian StyleLin, Mu-Xing, Hwa Meei Liou, and Kuei Tien Chou. 2020. "National Energy Transition Framework toward SDG7 with Legal Reforms and Policy Bundles: The Case of Taiwan and Its Comparison with Japan" Energies 13, no. 6: 1387. https://doi.org/10.3390/en13061387
APA StyleLin, M.-X., Liou, H. M., & Chou, K. T. (2020). National Energy Transition Framework toward SDG7 with Legal Reforms and Policy Bundles: The Case of Taiwan and Its Comparison with Japan. Energies, 13(6), 1387. https://doi.org/10.3390/en13061387