Renewables are expected to take up 26% of the energy mix by 2030.The capacity of non-hydropower renewables in Taiwan is expected to rise about 18.2% every year between 2019 and 2028 to a total of nearly 21.3GW or 15.4% of the generation mix, according to Fitch Solutions.
This is in line with the government's aim to expand the share of renewables generation to 20% by 2025 and 26% by 2030, from just 3% in 2018. In particular, they target offshore wind and solar capacity to reach 5.5GW and 20GW respectively.
This move is made to offset a continuing nuclear phase-down policy and environmental opposition against coal-powered projects.
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In line with these targets, the government has spearheaded a feed-in tariff programme, tax incentives, and financing of renewable energy research and development centres.
Taiwan currently has over 7.8GW of offshore wind capacity in the project pipeline, placing it as one of the largest markets for it worldwide. The country is also expected to join amongst the fastest-growing solar markets across the globe, with a solar PV promotion plan for 2019-2020 and a deployment of another 3.7GW solar capacity by next year.
A cut in feed-in tariff rates in 2019 have slightly dented investor interest in both wind and solar, Fitch added. However, a solar equipment supply glut in China has allowed the country access to cheaper solar panels.