Policy target, feed-in tariff, and technological progress of PV in Taiwan

It is widely recognized that solar energy, a major renewable energy source, can strengthen a country׳s energy security and reduce CO2 emissions. For this reason, Taiwan aims to develop its solar power industry by promoting photovoltaic (PV) applications. To meet its PV installation targets, the government is considering adopting feed-in tariffs (FITs), offering subsidies on capital expenditures, and funding research and development. At present, there is a wide gap between the country׳s installed capacity and the long-term government targets. Therefore, this study constructs a PV supply curve to demonstrate the potential contribution of PV power to Taiwan׳s electricity requirements. Based on this curve, an assessment tool is developed to show the relationship between PV installed capacity and energy cost reductions under a FIT scheme. Using this assessment model, policymakers can simulate the adoption of PV projects at the county level and anticipate possible challenges. Furthermore, the model will also measure the level of cost reductions required for PV technology to reach specific targets under the FIT scheme.