| dc.description.abstract | Taiwan has a scarcity of natural resources, resulting in a strong dependence on importing
fossil fuels and an energy security problem. Furthermore, the public fears and opposes the
usage of nuclear power plants, forcing the government to have a serious debate that has
lasted for years. As a consequence of this, the Tsai Ing-Wen administration is determined to
change the status quo and reform the electricity sector. One of the new government’s key
goals is to increase renewable energy contributions to 20% of the overall electricity mix by
2025.
This paper aims to answer the question of whether or not the new renewable energy policy in
Taiwan is economically viable. The research is integrated into a cost benefit analysis of the
three main types of renewable energy outlined in this plan, which are wind power, solar
power, and small hydropower, respectively. The paper adopts (1) net present value (2)
benefit-cost ratio and (3) internal rate of return and (4) payback period as decision criteria to
be used in appraising the monetary costs and benefits associated with this plan, from the
private sector perspective. The paper also covers non-monetary costs and benefits, which are
also extremely important when going through the decision-making process.
The results of the analysis contained in this report prove that both wind and solar PV are
both economically viable options, while small hydropower is not. The paper concludes with
some insights into how the Taiwanese government can leverage public policy and make
strategic decisions that will both attract private investors into this space and bring Taiwan
closer to ensuring clean and reliable access to electricity for its people. | nb_NO |
