Assessment of the feed-in tariff mechanism for renewable energies in Taiwan

Due to Taiwanʹs lack of natural resources, dependence on imported energy, and pursuit of sustainable development, renewable energies are extremely important for Taiwanʹs future energy supply. Since Taiwanʹs feed-in tariff (FIT) is still in its initial stage, one must examine whether the current system is compatible with a well-designed FIT scheme. This study examines the main features of Taiwanʹs FIT system and assesses design options using several criteria. Additionally, one of the most important elements of a FIT scheme, namely, a tariff system, is discussed. Taiwanʹs FIT scheme has the design options required by well-functioning FITs, and the guaranteed-return tariff system coincides with the spirit underlying leading global FITs; however, many issues, such as setting goals by stages, refinement of the tariff calculation methodology, and elimination of other non-economic barriers, must be addressed to achieve future developmental goals and green industry growth.