Taiwan's 2012 Renewable Energy Power Purchase Rate Cuts to Twice Yearly

Taiwan’s renewable energy power purchase rate was announced on February 7. EnergyTrend, a brand owned by TrendForce, observed that since 2012, several countries underwent downsizing adjustments to their electricity bills. The main reason was that the price of solar modules dropped sharply in 2011. As a result, the installed capacity in various countries increased and the national renewable energy budget The rapid consumption, including Germany, Greece, the United Kingdom, and Switzerland, all reviewed the subsidy policy in early 2012, and gave different degrees of subsidy correction for different system sizes. Affected by policy uncertainties, demand in the first quarter was concentrated in countries such as Europe and the United States, followed by China, the United States, Japan, and Australia. EnergyTrend expects this year's demand to reach 26GW, which still shows a slight increase compared to the actual installed capacity in 2011.

In addition to Germany, Greece, and Switzerland have announced the reduction of subsidies, the United Kingdom will also adjust the subsidy amount in accordance with the price of electricity in April 2012 again. On the other hand, the Czech Republic slightly increased the amount of subsidies for 2012, and it also stated that the subsidy budget was 11.7 billion kronor. It is expected that the installed capacity in the Czech Republic will rise for the first time since 2010, but in view of the repeated policy of increasing taxes due to excessive subsidies in the past. Most investors are still watching with a more conservative attitude. In Asia, after Malaysia announced the subsidy, the number of applications has increased significantly. According to the first-come-first-served basis, the amount of installation planned for 2012 is now completed, and it is therefore necessary to wait for the remaining quota in the second half of 2013; The Malaysian government will provide subsidy for additional installations in projects through the requirements of the industry and local governments.

In February 7th, the solar photovoltaic power purchasing rate announced by Taiwan was changed from once-a-year downgrade to twice-a-year, and the system completed before June 30 is applicable to the first-period rate, with a drop of 5.8%. To 8.3%, except for the first-to-preliminary small-scale system, the large-scale system using the bidding system will be awarded by the industry with the highest discount rate. With the current system cost estimate, the use of a first-come-first-serve small-scale roof type system is more attractive for investment. Large-scale systems are constrained by factors such as higher development costs and additional discount rates. It is expected that the manufacturers' willingness to invest will be low.