July 8, 2009

Taipei, Taiwan: Taiwan Government Initiatives to Stimulate Green Energy Industry

The Taiwan government has started several initiatives aimed at supporting the growth of the domestic green energy industry, which is helping to cut carbon emissions and make better use of renewable energy. In the next five years, the government will invest a total of NT$45 billion (US$1.4 billion) to boost the industry. The government aims to increase industry revenue to NT$1.5 trillion by 2015, from last year`s NT$160.3 billion.

By 2015, the industry is expected to account for 6.6% of the total revenue of Taiwan`s manufacturing industry and create 110,000 jobs.

"The green energy sector can turn Taiwan into a major power in energy technology and production, as well as provide in the creation of green jobs," Taiwan Premier Liu Chao-shiuan said. In June, Taiwan’s Legislative Yuan passed the Statute for Renewable Energy, and in April, Taiwan’s Executive Yuan approved a project for new industrial development — The Takeoff Program for the Green Energy Industry.

Taiwan’s Ministry of Economic Affairs (MOEA) said The Takeoff Program will be divided into two parts.

The first stage will focus on solar energy and light-emitting diodes (LEDs). The aim is to make Taiwan one of the world's top-three producers of solar energy batteries and the world's largest supplier of LED lights and modules. Taiwan will change all of its 700,000 traffic signals to LEDs and by 2011, the island aims to complete the construction of Asia's largest solar power plant. The global market for LEDs, worth about US$5 billion, is likely to more than double in size by 2012 as nations and consumers use the energy-saving lights to cut expenses and help reduce carbon emissions. LEDs are likely to capture a larger portion of the market for nearly every type of lighting such as displays in electronic devices, road signage, traffic lights, large public information screens and video displays.

Taiwan’s LED industry, the world’s second largest by revenue, includes companies such as Arima Optoelectronics Corp., Bright LED Electronics Corp., Epistar Corp., Everlight Electronic Co., Formosa Epitaxy, Genesis Photonics Inc., Harvatek, I-Chiun Precision, Ligitek, Opto Tech and Unity Opto Technology Co.

Taiwan’s solar cell makers include Motech Industrial Inc., Gintech Energy Corp., E-Ton Solar Tech, Sino-American Silicon Products Inc. Sinonar Corp. and Green Energy Technology. Motech, Gintech and E-Ton are among the world’s ten largest solar cell makers by revenues.

The second stage of the Takeoff Program will promote wind power generation, biofuels, hydrogen energy and fuel cells. Electric vehicles will be among the target products in this phase with the aim of developing Taiwan into a global supplier of wind power generation systems and becoming a key production base for electric vehicles and fuel cell system assembly in the Asia-Pacific region. The government aims to make Taiwan a key center for electric-vehicle manufacturing and fuel-cell assembly in the second stage.

The MOEA noted that of the NT$45 billion in funds, NT$20 billion will allocated for investment in R&D and another NT$25 billion will be used for renewable energy and energy-saving facilities and grants. The Statute for Renewable Energy provides incentives for the development of the green energy industry, including solar energy, ocean energy, wind power, biofuels and waste-generated hydrogen power.

Tsai Chin-yao, a board member of the Taiwan Photovoltaic Industry Association, said the passage of the statute will attract at least NT$30 billion of investment, creating over 10,000 jobs and NT$100 billion of annual production value in one to two years. Even some of Taiwan’s largest companies are evaluating the possibility of entering the solar energy business. Taiwan Semiconductor Manufacturing Co. (TSMC), the world's largest contract IC maker, said earlier this year that it may enter this relatively new industry.