Research and Analysis of Promotional Policies for Small Hydropower Generation in Taiwan

Abstract

To achieve the net zero emission target by 2050, Taiwan is committed to promoting solar photovoltaic and offshore wind power. However, in order to ensure the stable supply of renewable energy, it should actively develop low-cost and mature base load renewable energy sources, such as small hydropower. By the end of 2021, Taiwan’s hydropower (excluding pumped storage hydropower) had a total installed capacity of 2094 MW, accounting for 18.6% of the overall renewable energy ratio, with an average growth rate of 0.05% from 2016 to 2021. It is mainly limited by the need for low environmental and ecological impact, so it is relatively difficult to install large-scale hydropower; therefore, Taiwan has turned to the development of environmentally friendly small hydropower generation. In order to actively develop small hydropower generation and resolve development concerns, Taiwan has established a “Small Hydropower and Renewable Energy Development Strategy Platform”. The current effective cases are mostly in the fields of the Taiwan Power Company, Water Resources Agency, and Council of Agriculture. The private sector has not yet shown its investment in the field. The reasons for this can be summarized as cumbersome administrative procedures, regulatory restrictions, insufficient economic incentives, and lack of technical capacity. The higher-level supervision mechanisms (such as the Executive Yuan level) are also the main key to whether small hydropower can be quickly promoted. In view of this, this study analyzes the current situation and policies to promote small hydropower generation policy recommendations through a literature review and comparison of international promotion experience. Some recommendations have also been incorporated into the newly revised Renewable Energy Development Act in 2023, such as relaxing the definition of small hydropower generation and incorporating water conservancy construction facilities that can be combined with power generation to improve site diversification. Other suggestions mentioned in the text can also be used as a reference for subsequent policy promotion in the future.