Nationally Appropriate Mitigation Actions (NAMAs) was formed part of the Copenhagen Accord issued following the United Nations Climate Change Conference in Copenhagen (COP 15) in December 2009. To make specific contributions in combating global warming jointly with the international community on the post-Kyoto period based on the ‘common but differentiated responsibility’ reduction principle of the convention in following the NAMAs, Taiwan’s Environmental Protection Administration (EPA) proposed the national carbon dioxide emission returns to the 2005 level by 2020, and to the 2000 level by 2025. Following this guideline, The Bureau of Energy of Taiwan has announced the promotion targets of renewable electricity production in 2015, 2020, 2025 and 2030.
The Economy-Energy-Environment (Triple-E) Model of Taiwan Institute of Economic Research (TIER), derived from the ORANI-G model, is a multi-sectoral, single region, and computable general equilibrium (CGE) model with four main features: (1) the ‘Technology bundle’ approach for the electricity Industry; (2) the multi-product oil refinery industry; (3) CO2 emission accounting and (4) the consideration of new energies. In this study, we use Triple-E to simulate the economic, environmental and energy impacts of the structural changes in electricity generation under the promotion targets of renewable electricity production.
The simulation results show that implementing the renewable electricity production scheme will reduce CO2 emission by approximately 5.82 and 6.63 million tons by 2020 and 2025, respectively. Energy density will drop by 1.38% in 2020 and 1.62% in 2025. The share of electricity from renewable energy grows to 3.84% in 2020 and to 4.82% in 2025. With the ‘Green Energy Industry Sunrise Project’ of MOEA implemented, the estimated output value of green energy industries in 2020 will expand to NT$2,133 billion and to NT$2,981 billion in 2025.
Sunday, September 05, 2010
The Analysis of Historical Carbon Dioxide Emission in Taiwan
As the global consciousness of carbon dioxide emission reduction has attracted the government and the people of Taiwan for the past two decades, the Committee of the Carbon Reduction of the Executive Yuan and the Environmental Protection Administration (EPA) of Taiwan has proposed the target of national carbon dioxide emission reduction. The concept of the carbon credit and the emission control is included in the draft of Greenhouse Gases Reduction Act. Also, at the end of this year, the carbon trading platform will be established by EPA. Therefore, the understanding of the historical allocation of the carbon dioxide emission between different sectors and industries becomes very important. This information will be provided to the government and the public to realize the effect of the carbon credit allocation.
In this paper, we compared and discussed several methods of producing the Carbon Dioxide Emission Matrix, using the data from year 2006. Then, we examined the relationships between the carbon dioxide emission and Taiwan’s macroeconomic variables. From the micro perspective, we examined the relationships between the carbon dioxide emission, the annual output values, and the GDP of individual sectors/industries; then we find out the top contributors of the carbon dioxide emission and the industries with high Carbon Dioxide Intensity. To conclude, we cannot sacrifice some important industries from the economic point of view, but we can use more “cleaner” energy products more instead of the “dirty” ones.
In this paper, we compared and discussed several methods of producing the Carbon Dioxide Emission Matrix, using the data from year 2006. Then, we examined the relationships between the carbon dioxide emission and Taiwan’s macroeconomic variables. From the micro perspective, we examined the relationships between the carbon dioxide emission, the annual output values, and the GDP of individual sectors/industries; then we find out the top contributors of the carbon dioxide emission and the industries with high Carbon Dioxide Intensity. To conclude, we cannot sacrifice some important industries from the economic point of view, but we can use more “cleaner” energy products more instead of the “dirty” ones.
Grid Parity Analysis of Solar Photovoltaic Systems in Taiwan
In 2007, Mckinsey published a report, indicating that most countries will have reached grid parity by 2020 due to high Silicon material prices, high module cost, and low efficiency. But in reality, the development of the solar industry had been faster than expected in 2007. Due to the financial crisis and Spain’s collapse, the price of silicon material was declining; new applied material and higher efficiency both contributed to a lower unit of cost.
Today, solar power is not an energy solution but a financial tool. The fact that grid parity has been reached is important because people will volunteer to install PV systems without any subsidy. In twenty to thirty years, people can use electricity generated by PV systems instead of paying for it to save the electricity cost. Over this time period, we believe the solar market will grow at a potential rate.
In Taiwan, the government mainly uses IRR and payback period method to evaluate the value of installation. However, both methods can not indicate when the grid parity year is. The paper analyzes two aspects - factors that decrease the unit cost of solar power and factors that increase the end user electricity price. The factors that decrease the cost of solar power include material and module price, efficiency improvement and module lifetime. The factors that increase electricity price are subsidizing the power cost generated by renewable energy. The cost may be raised due to the shortage of resources in the future. The research period is from 2011 to 2030, and the factors are extrapolated from the expectation and estimated. Two situations -subsidy and without subsidy - are separately considered when the grid parity is reached in Taiwan.
Today, solar power is not an energy solution but a financial tool. The fact that grid parity has been reached is important because people will volunteer to install PV systems without any subsidy. In twenty to thirty years, people can use electricity generated by PV systems instead of paying for it to save the electricity cost. Over this time period, we believe the solar market will grow at a potential rate.
In Taiwan, the government mainly uses IRR and payback period method to evaluate the value of installation. However, both methods can not indicate when the grid parity year is. The paper analyzes two aspects - factors that decrease the unit cost of solar power and factors that increase the end user electricity price. The factors that decrease the cost of solar power include material and module price, efficiency improvement and module lifetime. The factors that increase electricity price are subsidizing the power cost generated by renewable energy. The cost may be raised due to the shortage of resources in the future. The research period is from 2011 to 2030, and the factors are extrapolated from the expectation and estimated. Two situations -subsidy and without subsidy - are separately considered when the grid parity is reached in Taiwan.
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