Clarification of the erroneous opinion of “offshore wind power to promote “selling Taiwan”

The media reported that "Taiwan's offshore wind power promotes "selling Taiwan"! For example, in the United States, Vietnam and other countries, the price of offshore wind power is relatively low, and the government has accelerated the process, causing people to spend hundreds of billions of dollars and other wrong content, causing obvious misunderstandings. Vietnam's offshore wind farms provide additional incentives for international financial assistance and the government; the US offshore wind farms reduce costs by providing tax incentives and additional renewable energy transaction amounts, so the purchase price can be lower than the purchase price of China. .

The Ministry of Economic Affairs once again stated that the offshore wind power prices of various countries are affected by factors such as the renewable energy promotion system, the development environment integrity, the wind farm operation period, and the developer operation strategy. Therefore, it is not appropriate to directly compare them at a single price; The price difference with other energy categories should be based on the future alternative to offshore wind power. Based on the current average electricity cost, the media said that the public paid 1.4 trillion yuan for offshore wind power without considering nuclear waste disposal costs and nuclear disasters. Narratives such as risk costs have been misleading the public's excessive speculation. The Ministry of Economic Affairs once again put forward a rigorous clarification as follows:

1. The United States provides preferential tax reductions and exemptions, while Vietnam has international financial assistance and additional government incentives. However, China has only a single acquisition rate, and the cost structure is obviously different. It cannot be directly compared at a rate. :

(1) The industry has doubts about Vietnam's political and financial risks. Its offshore wind farm development has financial assistance from other countries, such as the introduction of financial support from third-party countries such as the World Bank or the Asian Development Bank, or US trade development. Funds are subsidized by the government (USTDA); in addition, the Vietnamese government provides additional incentives such as performance bond relief, tariff reduction, income tax reduction and land rent reduction for its offshore wind farm development.

(2) The US government provides its offshore wind farm operator tax exemption, which can be either one of the production tax credits (PTC) and the investment tax credit (ITC). High can offset 30% of the total investment.

2. In the text, it is misleading to spend 680 billion yuan in 20 years and 1.4 trillion yuan in comparison with nuclear power.

(1) The report estimates the price of fossil fuels for the next 20 years based on the current average electricity price of 2.8 yuan/kWh. Based on the scarcity of fossil fuels, future price estimates may vary greatly. The reported price of offshore wind power is 4.5 yuan / kWh to maintain price constancy according to law.

(2) If nuclear power is chosen to replace safe and clean offshore wind power, the overall social cost of nuclear waste final disposal cost and nuclear disaster risk should be added.

(3) In addition to energy efficiency, offshore wind power also has multiple benefits such as reducing air pollution and developing local industries. It should also be considered together. The 5.5 GW target is expected to bring about 19.8 billion kilowatts of clean electricity and 10.47 million tons of carbon reduction per year, which will create 20,000 jobs and NT$622.5 billion in investment.

The Ministry of Economic Affairs once again stated that countries promote renewable energy with different systems, promotion processes and development environment. It is not appropriate to compare offshore wind power prices with biased perspectives. For the comparison of renewable energy or offshore wind power prices in various countries, the relevant systems of electric power industry and renewable energy promotion should be fully explained to avoid misleading people to generate unnecessary doubts.

The Ministry of Economic Affairs finally stressed that it will continue to adhere to the established renewable energy promotion policy, fully promote offshore wind power, and complete the goal of 5.5 GW of offshore wind power in 2025 as scheduled, create green economy industrial value, and achieve environmental sustainability in China. Vision.

Source: Ministry of Economic Affairs R.O.C