7.14.1 Policies, mandatories, and targets

One of the key tasks of energy policy in Taiwan is to stabilize energy supply to increase energy independence. The installed capacity of power generation from renewable energy is identified to be 12% in total to enhance energy self sufficiency, and the target of 10% in total is set to be reached in 2010. Power generation from biomass and wastes is set to be the third largest sources of renewable energy, which is 1.44% in total (741MW) in 2010. In order to promote the utilization of renewable energy, the “Renewable Energy Development Bill” has been drafted and submitted to the Legislative Yuan for approval.

The application of biofuels to transportation sector is in growing trend in recent years. The pilot project started by Environmental Protection Administration is to blend 20% of biodiesel (B20) to garbage truck from 2004. Since then, the Bureau of Energy proceeded the demonstration project with four stages. Firstly, the Green Bus Project was started in 2006, which 2% of biodiesel (B2) is blended to bus fleet operated by public sector. Secondly, test sales of B1 at gas station of Taoyuan county,

Chiayi city, and Chiayi county was started in 2007, which is called Green County Project. Thirdly, the target of B1 sales at all gas station will be reached in July, 2008. Finally, the target of B2 applied in nationwide area, which is estimated to be 100 dam3/year (100,000 kL/year) in total will be reached in 2010.

The application of bioethanol was started in 2007, test sales of E3 at 8 gas station in Taipei city is focused on official’s car, and private car is also encouraged to use. The target of E3 at all gas station of Taipei and Kaohsiung city will be started in January, 2009. It is expected to use E3 in nationwide area in 2011, which is estimated to be 100 dam3/year (100,000 kL/year) in total.

Up to now, subsidizing for biomass utilization is still inevitable. The related mandatories are listed below:

• Measures for purchasing electricity from renewable energy sources

• Measures for rewarding methane power generation in landfill

• Measures for subsidizing energy crop green bus projects

• Measures for subsidizing green county promoting projects

• Measures for subsidizing green official’s car pilot projects

Considering the area of farm to cultivate energy crops is limited, it is possible to import biofuels from abroad. The “Petroleum Administration Act” should be revised to enhance the management of imported renewable energy, such as bioethanol, biodiesel etc.