New Govt. in Taiwan Retries Introducing Aggressive Energy-saving Policy

Premier Liu Chao-hsuan announced in late July that the government will put in place a four-year program to realize four energy-conservation goals, helping slash Taiwan's greenhouse-gas emissions to turn the island into a role model in an era of global warming.

The program consists of adopting practical, time-proven means to cut energy consumption: turn some 90,000 gasoline cabs into propane powered; raise the total electric scooters in Taiwan to 100,000; replace all incandescent lamps with energy-saving counterparts; and install solar water heaters in 140,000 more homes.

The authorities also plans to build bicycle-exclusive paths throughout the island's 25 counties and cities; subsidize buses serving remote areas; promote eco-friendly construction; as well as resource recycling.

The Bureau of Energy (BOE) under the Ministry of Economic Affairs (MOEA) estimates that Taiwan can, with NT$248 (US$8) saved by each 100-watt incandescent bulb replaced with a 20-watt energy-saving counterpart in the 7.31 million homes islandwide, cut around NT$1.8 billion (US$58 million at US$1:NT$31) from power bills in Taiwan yearly.

Millions of KWs Saved

BOE chief, H.C. Yieh, says that some 20 million incandescent lamps being used in Taiwan burn about 1.8 billion KW of electricity per hour. Replacing all these incandescent bulbs with energy-saving ones would save up to 800 million KW hour of electricity a year, which would reduce nearly 500,000 metric tons of carbon-dioxide emissions that, otherwise, needs an estimated 27.8 million trees to absorb.

Yieh says that the BOE will rid of such incandescent lamps from Taiwan in five steps: The first step is to order all official offices to replace such bulbs within a year; the second is encourage traditional markets to replace the approximately 50,000 incandescent bulbs with energy-saving ones; the third is convince all retailers, hotels, restaurants etc. to voluntarily switch to energy-saving bulbs; the fourth is educating households; and the final step is drawing up energy-efficiency standards.

In hearing the energy-saving policy, Edward Po, general manager of Philips Taiwan's Lighting Division, said such is a "conscientious and socially-responsible policy." Although a 20W compact fluorescent lamp (CFL), he said, or an energy-saving lamp is priced about six times that of a 100W incandescent lamp, but the price difference is recouped in two months of power savings. "CFLs in fact are not expensive at all considering on average the price difference is offset in one and half years by lower power bills."

Premier Liu's solar water heater plan, despite being warmly received by suppliers of such heaters, have irked consumers to ask for higher official subsidies.

A typical solar water heater in Taiwan is priced around NT$65,000 (US$2,096), or as much as NT$100,000 (US$3,225) when installed. Retailers say solar heaters, compared with electrical ones, can save up to NT$800 (US$25) a month in electricity, or over NT$10,000 (US$322) a year.

Ample Solar Water Heaters Down South

A study by the National Cheng Kung University shows that Pingtung, the southernmost county also famous for plentiful sunshine and number of clear days yearly, has the densest distribution of solar water heaters in Taiwan-with around 51 out of 1,000 households heating water with free energy-totaling some 152,100 installations so far. Such high rate of installation is also likely due to the county's considerable number of single, detached homes.

To add structure and official impetus to Taiwan's solar-energy industry, the Premier says the Cabinet will prioritize drafting renewable-energy statutes in the next legislative session, beginning on Sept. 18, which would guide the island towards developing into a world-class solar-energy producer.

People familiar with the government's energy policy point out that renewable-energy statutes would help build Taiwan's solar equipment industry since such laws would require the authorities to buy solar power equipment from the private sector on the island.

Similar renewable-energy regulations as the one drafted by Taiwan have been put into practice in Spain, Germany, the United States, mainland China, South Korea and Japan, industry watchers say.

Globally-leading Potential

The Premier says Taiwan is basically compelled to draft energy policies without having oil deposits, adding that the island may not boast the world's largest number of solar-energy installations, but certainly has the potential to grow into a globally leading supplier of solar-energy equipment.

Premier Liu appears eager to turn the heat up under the solar-energy equipment sector-to build such industry into another NT$1 trillion (US$32 billion) economic driver, after the semiconductor and LCD counterparts.

The heart of the solar energy sector rests in the Southern Taiwan Science Park, home to Taiwan's photovoltaic industry that, in the first half of 2008 alone, generated NT$11.6 billion (US$375 million) in revenues, up 70.74% from the same period of last year.

To further develop the sector, the park's administration estimates a newly developed 20-hectare site could attract about 10 more energy-technology businesses, which, based on a combined investment of NT$15 billion (US$483 million), would generate aggregate revenue of NT$30 billion (US$967 million), as well as create over 2,000 jobs.

Unrealistically Aggressive

More skepticism has been lobbied at the government's plan to retrofit more gasoline powered taxis than other energy-saving goals announced by Premier Liu, for the new plan is overly, unrealistically aggressive, just as the one introduced earlier this year by the former Democratic Progress Party administration, which announced in January that 150,000 propane powered cars would hit the roads islandwide by 2012, and permitted engine-retool subsidies to all drivers, not just cabbies.

The revised plan, despite being somewhat more modest than the DPP version, has stunned Environmental Protection Administration (EPA) officials, who say over 65% of the some 90,000 taxies islandwide do not suit propane retrofitting for being too old. They also note that as of June this year only 14,000 of the 33,000 propane-convertible cabs had been retrofitted, with many cabbies still reluctant to switch to propane due to ignorance-fearing that retrofitting may damage their engines.

Besides, they point out the insufficiency of propane stations-so far only 22 refill stations exist islandwide, with 11 in northern Taiwan. They fear retrofitting the island's taxies to run on natural gas is unachievable without legislative backing. Furthermore, all retrofitted cars must be nationally safety certified before hitting the road again, with relatively expensive certification fees prompting retrofitters to focus working only on popular makes.

Good Idea But Too Soon

D. Chen, chairman of a taxi trade association, sniffs at the propane retrofit plan, saying: "Good idea but I doubt it can be completed in four years," also suggesting the government should offer higher subsidy instead of forcing cabbies via legislation. Currently, cabbies are subsidized NT$25,000 (US$806), but actually double that is needed to complete the retrofit.

Regardless, some cabbies say that burning propane is helping to save NT$6,000 to NT$10,000 (US$193-322) in fuel every month, making the retrofit worthwhile in the long-term.

Chairman of the non-profit NGO Environmental Quality Protection Foundation (EQPF), M.L. Liu, also questions the feasibility of the propane retrofit plan-"Is it possible to raise propane refill stations by seven folds to 140 in four years?" He also notes that basic propane refill stations in Japan are set up at large parking lots and taxi depots; but in Taiwan such stations are often seen as "ticking time bombs," one of the many neurosis plaguing the island's residents that limit such installations.

Insufficient Plug-ins

The goal to raise the number of electric scooters also faces detractors. Although the EPA has announced electro-scooter buyers will be subsidized NT$10,000-15,000 (US$322-483), industry watchers expect such approach to fail as happened some years ago. A similar program was promoted in 1995, with the government having spent some NT$1.7 billion (US$56 million) subsidizing scooter buyers; but without sufficient number of recharging stations set up as promised, and potential riders being reluctant to lug 10-kg batteries home for recharge, the project stalled by 2003. Also inefficiencies are other obstacles: each recharge takes six to eight hours to last a maximum 20 kilometers.

While praising Premier Liu's determination to cut vehicular emissions, Liu of the EQPF calls on the government to conscientiously study and draft every measure related to such energy-saving policy, lest history will repeat itself. Liu also suggests the government to restrict commercial lighting hours, as well as switching to LED lamps, which he estimates can save up to 50% electricity. Plus the government, he adds, should offer tax incentives to users of green products.

Industry watchers point out that the Premier aims to reduce emissions not only through cultural changes, but also in less grandiose, egoistic ways. Though the proposed program does not involve massive constructions or public-work projects, typical means used by Taiwan politicians to leave behind signatures, among other purposes, during their tenures, such practical, low-profile energy-saving policy works.