Taiwan has passed the Renewable Energy Development Act to take clean energy production to higher level by increasing investment, giving incentives and making regulations more flexible.

The legislative body of Taiwan passed a statute in the second week of June 2009 to promote the development of renewable energy in the country, said a Ministry of Economic Affairs (MOEA) official, as reported by Taiwan News.

The new legislation is expected to boost the renewable energy industry by pouring in investment of nearly 30 Billion Taiwan dollar (US$ 937 Million). With the enactment of new legislation, the renewable energy generation capacity will increase from 6,500 to 10,000 Megawatts in the next 20 years. According to the figures given by Taiwan Power Co. (a state-run company), the contribution of renewable energy resources to the total installed capacity in the country at present is 5.8% or 2,278 Megawatts.

The government will back the industry by providing incentives and making regulations more flexible to encourage providers to intensify their efforts of producing energy from renewable resources. It will also introduce a pricing mechanism for each renewable energy resource such as wind and solar power industry.

Earlier, providers were forced to sell electricity at two Taiwan dollars for every kilowatt hour against eight dollar recommended by them.

Industry experts have appreciated the government for clearing the bill and believe that it will produce over 10,000 jobs. Incentives scheme announced by the government seems to drive local solar, biomass, wind and other green sectors.

Apart from this, the funds given for the public construction projects by the government under its stimulus package also comprises 10% share for the development of renewable energy and efforts to promote energy saving schemes.

Besides, the new legislation authorizes the state-run Taiwan Power Co. to purchase electricity from private players and empowers the government to give other incentives for the fast-development of renewable energy technologies.

The statute gives emphasis on the development of nuclear power generation, solar photovoltaic energy, biomass energy, solar thermal energy and wind power generation.

According to a Research Analyst at RNCOS, “The legislative approval of the Renewable Energy Development Act will be the beginning of new era of alternative energy production and related applications in Taiwan. It means the country will give priority to the development and application of renewable, low pollution generating sources that curb carbon emission.”

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