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Overview of Chineses Taipei’s Energy Sector: Current Status and Plans for Future Development Huang, Yophy Bor, Yunchang Jeffrey Peng, Chieh-Yu

Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

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Page 1: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Overview of Chineses Taipei’sEnergy Sector: Current Status and Plans for Future Development

Huang, Yophy Bor, Yunchang Jeffrey

Peng, Chieh-Yu

Page 2: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Content

Introduction and Country Overview Energy and Environmental Policy Taiwan’s LEAP Model Framework Model Results for Business As

Usual Case and Other Scenarios Future Plans

Page 3: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Introduction

Western edge of the Pacific Ocean, South of Japan, North of the Philippines, 160 km off the southeast coast of

mainland Chain across the Taiwan Strait

Page 4: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu
Page 5: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu
Page 6: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu
Page 7: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Landscape

2/3 is Mountianous, only ¼ is arable Rivers are short, but useful for

power generation 23 million population on 36,000 km2

one of the most densely populated With biodiversity

Page 8: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Economy Foreign trade has been the engine of Taiwan's ec

onomic growth (FX Reserve ranks 4th ) A leading producer of high-technology goods GDP (2008) = US$ 392 billion, per capita GDP = US

$ 17,116 Agriculture accounts for 2%, Services at 73%, an

d Industry around 25%. Unemployment Rate (Jul. 2010) is 5.20%;

lower than 2% before 1990. Development relies on further transformation to

a high technology and service-oriented economy

Page 9: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Eco Growth Rates Overtime

-4

-2

0

2

4

6

8

10

year

%

Growth rate

year

6.38 1995

5.54 1996

5.48 1997

3.47 1998

5.97 1999

5.80 2000

-1.65 2001

5.26 2002

3.67 2003

6.19 2004

4.70 2005

5.44 2006

5.98 2007

0.73 2008

-1.91 2009

8.2~10.1 2010(f)

4.5 2011(f)

Page 10: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Energy Facts

Per capita power consumption: 9,550 KWh Rank 13th in the world ~ 3.7 times of world average

Share of world energy consumption: 1.0%

Share of world population: 0.3%

Land area: 0.06% of total

Share of world electricity consumption:1.3%

Total Amount of CO2 Emission: 261 MT Rank 22nd around the world ~ 1.0 % of world total

2005 Data from IEA Statistics of 2007

Page 11: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Energy Policy With scarce natural resources, thus depends al

most exclusively on imported energy (99%). Formal energy policy framework formulated i

n 1973, after the first energy crisis. In the latest revision, the goal of Taiwan’s ener

gy policy has been set to establish a liberal, orderly, efficient, clean, and sustainable energy demand and supply system

Page 12: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Energy Authority Energy Commission under the Ministry of Econo

mic Affairs (MOEA) in 1979. In 2004, upgraded as the Bureau of Energy (BOE) Formulate and implement national energy polic

ies such as the "Energy Management Act (EMA)", "Electricity Act (EA)", "Petroleum Administration Act (PAA)", "Regulations Governing Administration of Gas Utilities (RGAGU)", and other energy-related regulations.

Page 13: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Energy Authority

BOE also : Guides the operations of energy enterprises Evaluates energy supply and demand Establishes energy database system Promotes energy conservation programs Implements R&D on energy tech. Promotes international energy cooperation.

Page 14: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Main Approaches*

Stabilizing energy supply, Increasing energy efficiency, Deregulating energy markets, Emphasizing energy security and enviro

nmental protection, Enhancing energy R&D, Promoting energy education

Page 15: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Environmental Protection Environmental protection policies developed later.

In 1987, "Environmental Protection Administratio

n" (EPA) was established as a formal administration.

The EPA mandate includes: air quality and noise control, water quality , waste management, environmental sanitation and toxic substance management, supervision, and evaluation, and many others.

Page 16: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Focus on Climate Change Many Environmental Levies/Charges

implemented in the1990s. The EPA has been actively responding to the

UNFCC. Currently facilitating the legislation of“Greenhouse

Gases Reduction Act (GHGRA)” Tentative goal of the reduction of CO2 emission:

return to the level of 2008 between 2016 and 2020; return to the level of 2000 (=214.5 Mt) in 2025.

Page 17: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

The

Page 18: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Higher Profile of Energy/Environmental Authorities

The BOE will be upgraded as the Ministry of Economy and Energy,

The EPA will be upscaled to the Department of Environment and Resources.

Taiwan’s core principle of energy policy has been shifted to the balancing of the “three Es”, seeking a “Win-Win-Win Solution” for energy security, environment protection, and economic competitiveness.

Page 19: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

National Energy Conference

The National Energy Conference (April, 2009) further developed the following four major policies :

Sustaining energy development and establishing energy security for a low carbon society;

Developing energy technology and applying energy conservation and carbon dioxide reduction technology;

Promoting efficient energy management and setting up green power and a concentrated non-energy industry; and

Designing energy price and an open energy market for reasonable cost-based rates

Page 20: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Draft GHG Reduction Act

Will control GHG emission in three phases: Phase 1: emission required to conduct

GHG inventories, verification, and registration

Phase 2: performance standards would be implemented to control per unit consumption or per unit product emission

Phase 3: a cap-and-trade system would be implemented

Page 21: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Renewable Energy Development Act (2009)

Give credits to the total amount of renewable energy in the range of 6,500MW to 10,000MW,

Establish funds to subsidize renewable energy, to set up purchase rates,

Design procurement rates for different renewable resources,

To give incentives to highly potential self-faculties,

Assist renewable energy owners in acquiring land.

Based on government target, installed capacity of renewable energy is projected to be around 8,450MW, or 15% of the system total installed

capacity around 56,640MW in 2025.

Page 22: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Renewable Energy Target 2,500MW will come from hydro, 3,000MW

from wind power, 1,000MW from solar photovoltaic (PV), 1,400MW from biomass,5 50MW from fuel cell, geothermal and ocean power.

Taiwan Power Company’s (Taipower’s) 7th transmission and substation plan from 2010~2015 will greatly enhance the system’s ability to connect a large scale of wind power and solar PV to the power grids.

Page 23: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Wind Power The offshorewind power project started in

2007, up to 300MW until 2011 Renewable Energy Development Act offers

preferential price of wind energy and to ensure that not less than the average cost of power generation from fossil fuels

However, the annual CF (capacity factor, see Appendix) decreased significantly, from 0.43 to 0.27 with more wind turbines installed and low operational performance was also a serious problem.

Page 24: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Wind Power Problems Average wind speed (5.6m/s) is lower

than other countries Need to develop localized low speed

onshore wind turbines and high efficiency SWTs ( Small wind Turbines) in the future.

Should focus on producing power from them, instead of installing capacity of wind turbines

Page 25: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Sustainable Energy Policy Guidelines on June 5, 2008

and approved the Energy Conservation and Carbon Dioxide Reduction Action Plan based on the Guidelines on September 4, 2008.

Page 26: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Low Energy Prices Historically, Energy prices have been low in Ta

iwan, even during the oil-price spikes in mid-2008.

For exmaple, prices for 95 Unleaded Gasoline (US dollars per liter) were $0.64 in 2002, $0.9 in Sept. 2009.

Average electricity prices (US$/kWh) were lower than $0.07 for the two decades from1988 to 2007, and rose to $0.08 in 2008

Thus, consveration incentive is weak and energy efficiency low.

Page 27: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

27

資料來源: The International Energy Agency ( IEA)《 ELECTRICITY INFORMATION ( 2008 Edition)》、美國 The Energy

Information Administration (EIA) 、馬來西亞電力公司( TNB) 2007 年統計資料、中國社會科學院。

註: 1 美元等於 31.358 元新臺幣

Electricity Rates Comparison

NT$/kWh residential industrial NT$/kWh residential industrial

Taiwan 2.586 1.833 Finland 4.5469 2.54

China 2.249 3.62 UK 6.8674 4.0765

Japan 5.7067 6.2404 Ireland 7.6514 4.6723

Korea 3.1985 2.1637 France 4.9546 1.756

HK 3.8242 2.9565 Italy 8.0904 7.4318

Singapore 4.4842 3.5121 Switerland 4.2647 2.6341

Malaysia 2.3019 2.2201 Poland 4.7351 2.5714

Philipines 6.2672 4.8722 Turkey 3.8257 3.418

Indonesia 1.9901 2.1678 Czek 4.5783 3.6062

Thailand 3.0279 2.7715 Portugese 6.6793 4.0138

USA 3.3239 2.0069 Hungary 5.8953 4.202

Mexico 2.9163 3.1985 Austria 6.7106 4.202

New Zealand 5.0486 2.1323 Slovekia 5.8953 4.296

Norway 4.1393 1.5052

NT$/kWh

Page 28: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Green Tax Reform the high-profile Tax Reform Committee (May

2008 ~ Dec. 2009) proposed a Green Tax Reform

To levy energy taxes and carbon taxes on exhaustible fossil fuels on a revenue-neutral basis; that is, by recycling Green Tax revenues into income tax cuts and subsidies for public transportation systems

Provide incentives for energy savings and CO2 abatement without hurting the economy and the poor.

Very likely to be legislated in 2011.

Page 29: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

29

Resource tax

Resource tax

Pollution Fees or tax

Pollution Fees or tax

Green Tax

Green Tax

Mines Fees

Soil & Stones Extraction Fees

Water Pollution Fees (not yet levied)Noise Control Fees

Soil and Underground Water Pollution Control Fees

Waste Disposal Fees

Sea Disposal Fees (not yet levied)

Reclyclable Disposal Fees

Air Pollution Control Fees

Movable Polluting Resources

Construction Sites

Fixed

Water Rights Fees ( not yet levied )、 Hot Spring Fees 、 Water Resource Conservation and Feedback Fees

Excise Tax 、 Vehicle Fuel Fees, Oil Fund

Green Tax Planned

Energy Tax

Environmental Tax

CO2 added as new

Page 30: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Six Key Emerging Industries Plan Green energy and tourism, medicine

and health care, biotechnology,, culture and creation, and high-end agriculture.

Goal: to upgrade industrial competitiveness and break through the difficulties facing exports at a time when the international economic situation is yet to recover.

Page 31: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Taiwan’s Energy Status(1/3)- Supply

Eenergy supply grew from 42 million kLOE in 1986, to 139 million kLOE in 2006

Annual growth rate averaging 6.2%.

Petroleum and Coal account for 97%.

31

Page 32: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Structure of Energy Supply in Taiwan: 1986 - 2007

0

20

40

60

80

100

120

140

160

1986 1990 1995 2000 2005 2006 2007?

(Mill

ion

kL

OE

)

Nuclear power generationWater power generationLiquefied Natural GasNatural GasPetroleumCoal

Taiwan’s Energy Status

50%

47%

Page 33: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Taiwan’s Energy Status(2/3)- Demand

Energy consumed 37.73 million kLOE in 1986, increased to 112.28 million kLOE in 2007

Average annual growth rate around 5.5%.

Industrial and transportation are the main users.

Page 34: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

The Structure of Taiwan’s Energy Demand by Sector, 1986-2007

0

20

40

60

80

100

120

1986 1990 1995 2000 2005 2006 2007

(Mill

ion

kL

OE

)

Energy TransportationIndustrial AgriculturalResidential CommercialOther Non-energy Consumption

Taiwan’s Energy Status

53%

14%

11%

Page 35: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Taiwan’s Energy Status(3/3)- CO2 emissions

Total CO2 emissions in 1990 were 108.6 million metric tons, growing to 215.6 mmt in 2000, then to 265.8 mmt in 2007.

The average annual growth rate of total CO2 emissions for Taiwan over 1990 -2008 was 4.8%.

It is noteworthy that in 2008, total CO2 emissions grew by -4%, falling from 2007 levels to 255 million metric tons, due to oil price hike and financial crisis.

Page 36: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Taiwan’s LEAP Model Framework

Page 37: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

System Framework of Taiwan LEAP Model

Taiwan’s LEAP Model Framework

Page 38: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Taiwan’s LEAP Model Framework

Taiwan’s Energy

Demand Side -The

LEAP Framework

Page 39: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Taiwan’s LEAP Model Framework

Taiwan’s Energy

Demand Side -The

LEAP Framework

Page 40: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

BAU: Business As Usual Scenario for Taiwan

Taiwan’s LEAP Model Framework

Page 41: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

BAU

Based on the structure of Taiwan’s energy sector as described in “Energy Balance Sheet of Taiwan”,

Which is prepared on the basis of the OECD Energy Statistical Tabular Form and in coordination with the needs of Taiwan (Bureau of Energy, MOEA, 2009).

Taiwan’s LEAP Model FrameworkBAU

Page 42: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Demographic Trends

Taiwan’s population of 23 million in 2008 is expected to fall to 20.3 million by 2056.

The average number of persons per household was 3.01 persons in 2008

The growth rate of household size, based on historical data (1998~2008), has averaged -1.33% annually

Taiwan’s LEAP Model FrameworkBAU

Page 43: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Taiwan’s LEAP Model Framework

Recent GDP

Growth Rates of Various

Industries

Economic Growth (1/2)

BAU

Page 44: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Taiwan’s LEAP Model Framework

Recent GDP

Growth Rates of Various

Industries

Economic Growth (2/2)

BAU

Page 45: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Energy Conversion (1/3) Summary of the Current Status of Installed

Electricity Generation Capacity and Plans for Near-term Capacity Additions for the Power System Nationwide Unit: Thousand kW

Unit 2007 2008Additional capacity to be added from

2008-2017

Coal 11,897 11,897 7,098

Gas 12,726 13,197 5,327

Fuel 3,610 3,610 109

Nuclear energy 5,144 5,144 2,700

Pumped hydro storage 2,602 2,602 -

Renewable energy 3,211

Hydro (conventional) 1,921 1,938 796

Other 182 246 2,415

Total installed capacity 38,082 38,634 18,445

Taiwan’s LEAP Model FrameworkBAU

Page 46: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Energy Conversion (2/3)

Unit: Thousand Metric Tons per year

Year Yungan Plant Taichung Plant Total

2007 8,280 42 8,322

2008 9,000 360 9,360

2009 7,440 1,500 8,940

2010 9,000 3,000 12,000

2015 9,000 4,000 13,000

2020 9,000 7,000 16,000

2025 10,000 10,000 20,000

CPC Corporation Taiwan LNG Terminal Existing Capacity and Expansion Plan

Taiwan’s LEAP Model FrameworkBAU

Page 47: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Energy Conversion (3/3) Energy Conversion Module Framework for Tawian

LEAP Model

Taiwan’s LEAP Model FrameworkBAU

Page 48: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Other Scenarios Modeled (GOV, FIN, RET, ALL)

Taiwan’s LEAP Model Framework

Page 49: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

GOV: Government Action

The government’s target is to reduce the energy intensity in Tawian’s economy

By enhancing energy efficiency, with an overall goal of reducing the economy’s energy intensity by an average of over 2 % annually thru 2025.

Taiwan’s LEAP Model FrameworkGOV

Page 50: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

FIN: Financial Tsunami (a sensitivity case)

The FIN was established to examine the impacts of lowered economic growth asumptions in the medium and longer term on energy use.

Based on assumption derived from the Taipower forecast, in the FIN sensitivity analysis case, the long-term forecast for overall economic growth in Taiwan falls to 3.42%/yr in 2016 and 2.59%/yr in 2021.

Taiwan’s LEAP Model FrameworkFIN

Page 51: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

RET : Retirement of the Nuclear plants (1/2)

The difference between the RET and BAU cases :

• The BAU case assumes that those units will either be replaced with units of similar capacity at the time of retirement of the original units, or that their life will be extended, as is relatively common today.

• The RET case assumes that the 2 units in the 4th nuclear power plant are not completed and thus not added to the power generation system.

Taiwan’s LEAP Model FrameworkRET

Page 52: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

RET : Retirement of Nuclear power plants (2/2) Current Status and Retirement Schedule for

Taiwan’s Existing Nuclear Power

Taiwan’s LEAP Model FrameworkRET

Existing installed capacity: 5,144 Thousand kW

Nuclear Plant Installed CapacityDate of Planned

RetirementTotal Installed Capacity

at Retirement

1St 1,272 thousand kW 2018 3,872 thousand kW

2nd 1,970 thousand kW 2021 1,092 thousand kW

3rd 1,902 thousand kW 2024 0 thousand KW

Page 53: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

ALL: Combined Reflects the combined assumptions: The government’s energy

conservation and carbon emissions reduction policy

+ the long-term impacts of the financial tsunami on Taiwan’s GDP

+ the retirement of nuclear power plants as in the RET case

All take place.

Taiwan’s LEAP Model FrameworkALL

Page 54: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Model Results for Business As Usual Case

Page 55: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Demand-side Results (1/2)

BAU

0

200

400

600

800

1000

1200

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l

Transportation

Services

Industry

Agriculture

Household

Energy Demand-Outlook by Sector, BAU Case

Model Results for Business As Usual Case

Page 56: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

BAU: by sector

Industry’s largest share still increases over time.

Followed by transportation sector.

Page 57: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Demand-side Results (2/2)

Model Results for Business As Usual CaseBAU

The Outlook of Energy Demand by Fuel, BAU Case

0

200

400

600

800

1000

1200

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l

Residual Fuel Oil

Natural Gas

Naphtha

Metalurgical Coke

LPG

Kerosene

Jet Kerosene

Heat

Gasoline

Electricity

Diesel

Coke Oven Gas

Coal Bituminous

Coal Anthracite

Blast Furnace Gas

Page 58: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Energy Conversion Results

Model Results for Business As Usual CaseBAU

Energy Conversion by Fuel Category, BAU Case

0

200

400

600

800

1000

1200

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l

Residual Fuel Oil

Other Petroleum Product

Natural Gas

Naphtha

Metalurgical Coke

LPG

Kerosene

Jet Kerosene

Heat

Gasoline

Electricity

Diesel

Coke Oven Gas

Blast Furnace Gas

Page 59: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

CO2 Emissions (1/2)

Model Results for Business As Usual CaseBAU

Carbon Dioxide Emissions, BAU Case

0

50

100

150

200

250

300

350

400

450

2008 2010 2015 2020 2025 2030

Mill

ion

Me

tric

To

nn

es

CO

2 E

qu

iva

len

t

Transformation

Demand

Page 60: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

CO2 Emissions (2/2)

Results for Other Taiwan Energy ScenariosBAU

Carbon Dioxide Emissions by Fuel Category, BAU Case

0

50

100

150

200

250

300

350

400

450

2008 2010 2015 2020 2025 2030

Mill

ion

Met

ric

To

nn

es

CO

2 E

qu

ival

en

t Residual Fuel Oil

Refinery Gas

Petroleum Coke

Natural Gas

Naphtha

Metalurgical Coke

LPG

Kerosene

Jet Kerosene

Gasoline

Diesel

Coke Oven Gas

Coal Bituminous

Coal Anthracite

Blast Furnace Gas

Page 61: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Results for Other Taiwan Energy Scenarios

Page 62: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

GOV vs. BAU Case Energy Demand Difference by Energy Category

Results for Other Taiwan Energy ScenariosBAU vs

GOV

-350

-300

-250

-200

-150

-100

-50

0

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l

Residual Fuel Oil

Natural Gas

Naphtha

Metalurgical Coke

LPG

Kerosene

Jet Kerosene

Heat

Gasoline

Electricity

Diesel

Coke Oven Gas

Coal Bituminous

Coal Anthracite

Blast Furnace Gas

Page 63: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Energy Demand Less

Under the GOV case, demand side energy use totals 805.2 trillion kcal by 2030,

Which is 327.8 trillion kcal less than in the BAU case.

Page 64: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

GOV vs. BAU Case Energy Conversion Output Difference by Energy Category

BAU vs GOV

-300

-250

-200

-150

-100

-50

0

50

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l

Residual Fuel Oil

Other Petroleum Product

Natural Gas

Naphtha

Metalurgical Coke

LPG

Kerosene

Jet Kerosene

Heat

Gasoline

Electricity

Diesel

Coke Oven Gas

Blast Furnace Gas

Results for Other Taiwan Energy Scenarios

Page 65: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Energy conversion output less

GOV results show total energy conversion output for 2030 of 904.3 trillion kcal,

which is 217.4 trillion kcal less than that of the BAU case

Page 66: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

GOV vs. BAU Case Carbon Dioxide Emission Difference by Fuel Category

BAU vs GOV

-160

-140

-120

-100

-80

-60

-40

-20

0

2008 2010 2015 2020 2025 2030

Mill

ion

Me

tric

To

nn

es

Residual Fuel Oil

Refinery Gas

Petroleum Coke

Natural Gas

Naphtha

Metalurgical Coke

LPG

Kerosene

Jet Kerosene

Gasoline

Diesel

Coke Oven Gas

Coal Bituminous

Coal Anthracite

Blast Furnace Gas

Results for Other Taiwan Energy Scenarios

Page 67: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

FIN vs. BAU Case Energy Demand Differences by Fuel Category

BAU vs FIN

-60

-50

-40

-30

-20

-10

0

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l

Blast Furnace Gas Coal Anthracite

Coal Bituminous Coke Oven Gas

Diesel Gasoline

Heat Jet Kerosene

Kerosene LPG

Metalurgical Coke Naphtha

Natural Gas Residual Fuel Oil

Results for Other Taiwan Energy Scenarios

Page 68: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

FIN vs. BAU Case Energy Conversion Output Difference by Fuel Category

BAU vs FIN

-50

-40

-30

-20

-10

0

10

20

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l Residual Fuel OilOther Petroleum ProductNatural GasNaphthaMetalurgical CokeKeroseneHeatGasolineElectricityDieselBlast Furnace Gas

Results for Other Taiwan Energy Scenarios

Page 69: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

FIN vs. BAU Case Carbon Dioxide Emission Difference by Fuel Category

BAU vs FIN

-14

-12

-10

-8

-6

-4

-2

0

2008 2010 2015 2020 2025 2030

Mill

ion

Me

tric

To

nn

es

CO

2 E

qu

iva

len

t

Blast Furnace Gas Coke Oven Gas

Diesel Gasoline

Jet Kerosene LPG

Metalurgical Coke Naphtha

Natural Gas Petroleum Coke

Results for Other Taiwan Energy Scenarios

Page 70: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

RET vs. BAU Case Energy Conversion Output Differences by Fuel Category

BAU vs RET

-2

0

2

4

6

8

10

12

14

2008 2010 2015 2020 2025 2030

Tri

llio

n k

cal

Blast Furnace Gas DieselElectricity Heat

Kerosene Metalurgical CokeNaphtha Natural Gas

Results for Other Taiwan Energy Scenarios

Page 71: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

RET vs. BAU Case Carbon Dioxide Emissions Differences by Fuel Category

BAU vs RET

0

10

20

30

40

50

60

2008 2010 2015 2020 2025 2030

Mill

ion

Me

tric

To

nn

es

CO

2 E

qu

iva

len

t

Coal Bituminous

Natural Gas

Results for Other Taiwan Energy Scenarios

Page 72: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

ALL vs. BAU Case Energy Demand Differences by Fuel Category

BAU vs ALL

-400

-350

-300

-250

-200

-150

-100

-50

0

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l

Blast Furnace Gas Coal AnthraciteCoal Bituminous Coke Oven GasDiesel ElectricityGasoline HeatJet Kerosene KeroseneLPG Metalurgical CokeNaphtha Natural GasResidual Fuel Oil

Results for Other Taiwan Energy Scenarios

Page 73: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

ALL vs. BAU Case Energy Conversion Output Differences by Fuels Category

BAU vs ALL

-300

-250

-200

-150

-100

-50

0

50

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l

Residual Fuel OilOther Petroleum ProductNatural GasNaphthaMetalurgical CokeKeroseneHeatGasolineElectricityDieselBlast Furnace Gas

Results for Other Taiwan Energy Scenarios

Page 74: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

ALL vs. BAU Case Carbon Dioxide Emission Differences by Fuels Category

BAU vs ALL

-80

-70

-60

-50

-40

-30

-20

-10

0

10

2008 2010 2015 2020 2025 2030

Mill

ion

Me

tric

To

nn

es

CO

2 E

qu

iva

len

t

Blast Furnace Gas Coke Oven Gas

Diesel Gasoline

Jet Kerosene LPG

Metalurgical Coke Naphtha

Natural Gas Petroleum Coke

Refinery Gas Residual Fuel Oil

Results for Other Taiwan Energy Scenarios

Page 75: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Summary of LEAP Findings

Page 76: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

The ALL case, results in the greatest reductions, followed by the GOV case.

The FIN case has less effect on energy consumption than the GOV or ALL cases, indicating that lowered economic growth is likely to have less effect on energy demand than aggressive policies to change energy consumption behavior patterns.

Retirement of existing nuclear power plants as scheduled (RET) has a negative impact on energy supply and an increase in CO2 emissions

Page 77: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Comparison of Total Demand Side Energy Use, all Scenarios

Conclusion

-400

-350

-300

-250

-200

-150

-100

-50

0

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l ALL

BAU

FIN

GOV

RET

Page 78: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Comparison of the Energy Conversion Output for All Scenarios

Conclusion

-400

-350

-300

-250

-200

-150

-100

-50

0

50

2008 2010 2015 2020 2025 2030

Tri

llio

n k

ca

l

ALL

BAU

FIN

GOV

RET

Page 79: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Comparison of Carbon Dioxide Emissions in all Scenarios

Conclusion

-200

-150

-100

-50

0

50

100

2008 2010 2015 2020 2025 2030

Mill

ion

Me

tric

To

nn

es

CO

2 E

qu

iva

len

t

ALL

BAU

FIN

GOV

RET

Page 80: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

6 Operating Units and 2 Units under Construction→ Chinshan , BWR4 , 636 MWe*2, commissioned in 1977

→ Kuosheng , BWR6 , 980 MWe*2, commissioned in 1982

→ Maanshan , PWR , 956 MWe*2, commissioned in 1984

→ Lungmen , ABWR , 1350 MWe*2, to be commissioned in 2010

Total Generation Capacity in 2007: 5,144 MWe

11.2% of Installed Capacity

Total Power Generated in 2007 : 39.3 TWh 16.7% of electricity generation ; 7.97% of Energy Supply

Total power Generation Cost of Nuclear Power in 2007 :

0.63 NT$ / kwh

Status of Nuclear Power in Taiwan

Page 81: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

81

0 50 (km)

SCALE

Nuclear Power Stations of TPC

H

H

HH

H

H

H

HH

HH

HH

HH

H

H

H

HH

HH

HH

H

HH

H

H

H

H

TT

T

TT

T

T

T

T

T

T

T

T

T

T

T

T

T

T

N

N

N

N

W

W

W

W

W

W

W

MaanShan

ChinShan

KuoSheng

Lunmen(BWR - 636 MWe × 2)

(BWR - 985 MWe × 2)(PWR - 951 MWe × 2)

(ABWR - 1,350 MWe × 2)

Page 82: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

82

Page 83: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

112/04/18Department ESS, NTHU,

Taiwan 83

• The Democratic Progressive Party (DPP) , on which anti-nuclear is on the platform, won the Presidential Election on March 18, 2000

Oct. 27, 2000, Premier Chang announced to terminate the construction of the 4th Nuclear Power Plant

Resulted in Political turmoil, stock market plunge, and economic downturn (growth rate turned -2.1% in 2001), first time ever in Taiwan since 1949.

Twists and Turns of Government Policy on

Nuclear Power in 2001

Page 84: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

ject

Feb.14, 2001, a memorandum was signed by the Executive Yuan and Legislative Yuan 1. Resume the construction of the 4th NPP. 2.“A Nuclear-Free Homeland” was the consensus among all the political parties. 3. Executive Yuan will draft an “Energy Bill” related to the utilization of nuclear energy.

Nuclear-Free Homeland with 4th NPP

Page 85: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Basic Environment Act (Dec. 11, 2002)

Article 23: The government shall establish plans to gradually achieve the goal of becoming a nuclear-free country. The government will also strengthen nuclear safety management and control, protections against radiation, and the management of radioactive materials and monitoring of environmental radiation to safeguard the public from the dangers of radiation exposure.

Page 86: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

National Energy Policy Drafted by the Newly Elected Government

(2008)Policy : 「 2008 Sustainable Energy Policy 」 「 Promote the diversification of energy resource, increase the

weighting of low-carbon energy in the energy portfolio, keep the nuclear power as a viable option of energy supply, the power generated from low-carbon primary energy resource will increase above 55% in 2025」

Strategy Plan : 「 Energy Security Strategy Plan 」

the Ministry of Economic Affairs 「 Propose a plan to increase the percentage of renewable

energy and nuclear power from current 9% to 18% at year of 2005. The tentative goal of the reduction of carbon dioxide generation: return to the level of 2008 between 2016 and 2020; return to the level of 2000 at 2025.

(Total generation at 2000 is 214.5 Million Tons) 」

Page 87: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

2009 National Energy Conferences

• Nuclear Power is discussed in the section of Energy Technology and Industry Development

• It is Suggested in the Conclusions of Group Discussion that:

1. Life Extension of the Existing Nuclear Power Units

2. Build Six Nuclear Power Units at the Existing Sites, the First One

will be Commercialized in 2020

3. Share of Nuclear Power in the Install Capacity increases to 20% ~

25% in 2025, and to 30% for the years beyond 2025

4. Strengthen the Public Acceptance of Nuclear Power

5. Promotion of the Safety of Nuclear Power Plant operation through

International Cooperation

6. Government should be Heavily Involved in the Identification of the

Repository Site of Low Level Nuclear Waste

7. Seek Regional Cooperation on the Spent Nuclear Fuel and High

Level Waste Management

Page 88: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Nuclear Power is Against Justice Among GenerationsSafety Concerns of Nuclear Power Plant, Especially on the Issue of EarthquakeLack of Proper Trained Engineers Running Nuclear Power PlantsTaiwan has no Capability in Handling Nuclear WasteThrough proper load management, the Install Generation Capacity is Enough to Cover the Future Demand

Anti-Nuclear Advocates in the National Energy Conferences

Page 89: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

112/04/18 wan 89

TaiPower under-estimated the generation cost ofnuclear powerNuclear Power generates carbon dioxide tooIPCC Has not Accepted Nuclear Power as a Way to Reduce the Generation of Carbon DioxideNot all the Environmentalists Recommend Nuclear Power as a Viable Option to Deal with the Climate Changes

Anti-Nuclear Advocates in the National Energy Conferences

Page 90: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Anti-Nuclear Advocate in the National Energy Conferences

Not All the Major Countries Has Adopted Nuclear PowerTaiwan Has Enough Renewable Energy to Cover the NeedsLNG is a Better Choice than Nuclear Power Nuclear Power will Take Away Valuable Resources

Page 91: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

NPPs at the Crossroad

• Nuclear power has significant contribution to Taiwan’s economic growth

• Nuclear power is a reliable energy supply, and helpful for the reduction of CO2 emission in the future

• Government intends to initiate the second phase of nuclear power development plan

• The major obstacles are the lack of an executable, feasible, and dependable management plan of low level waste and nuclear spent fuel

Page 92: Overview of Chineses Taipei ’ s Energy Sector: Current Status and Plans for Future Development Huang, Yophy ** Bor, Yunchang Jeffrey Peng, Chieh-Yu

Future Plans for LEAP Calculate demand elasticities for all types of

energy due to energy prices will increase in the LR.

Impact of green tax reform energy prices increase on energy demand and the economy

Max Nuclear Power vs. Min Nuclear Power Population growth rates on energy demand

and CO2 emission Impact of Green Energy Industry Plan