Taiwan Renewable Energy Association (TREA) Highlights 3 Major Concerns Over the RE30 Electricity Compartment System, Urges Government to Postpone Implementation

On the 20th, the Taiwan Renewable Energy Association (TREA) convened its inaugural sixth session of the Board of Directors and Supervisors meeting along with the second General Assembly of Members. In response to MOEA's proposal to promote the "Low-Carbon Electricity RE30" classification management, the association expressed concerns over three major issues. They warned that the program might even foster suspicions of "greenwashing" by blending fossil-based power with green energy, and could result in increased carbon emissions for companies and general consumers not participating in the scheme—thereby severely undermining the resale electricity market and international competitiveness. Following extensive discussions, the association resolved to urge the government to reconsider and temporarily postpone the initiative.

According to media reports, Taipower's long-planned Low-Carbon Electricity RE30 is scheduled to launch on July 1 this year, with an initial release of 1.66 billion kWhs, 30% of which will comprise green power. The minimum purchase quota is set at one million kWhs, while the maximum is capped at 100 million kWhs, targeting small and medium-sized enterprises. However, the selling price per kWh is expected to be higher than initially anticipated—estimated to exceed NT$5. Moreover, the primary clientele for RE30 appears to be export-oriented manufacturers responding to the implementation of CBAM in 2026, along with financially robust non-exporters in sectors such as banking and insurance, thereby raising international concerns about potential greenwashing by Taiwanese companies.

Statistics indicate that as of January 2025, there are 95 renewable energy electricity sales companies operating domestically, intensifying market competition. However, MOEA is considering a pricing mechanism for the RE30 electricity classification management to be provided by Taipower—a move that many association members fear could encroach upon the competitive space of existing operators and create confusion within the current green energy certificate system. Following proposals and deliberations at the General Assembly, the association resolved to urge the government to carefully reassess the plan and postpone its implementation. The association summarized its concerns regarding the RE30 electricity classification management as follows:
1. Violation of the Principle of Equitable Distribution of Environmental Benefits:
Under the provisions of the Electricity Act, Taipower is legally obligated to reduce the carbon emission coefficient of electricity year by year. In addition, Taipower has already collected a "Renewable Energy Development Fund' from general electricity consumers, which is utilized to promote green power development. However, the RE30 electricity classification management permits companies with ample resources to pay a premium for low-carbon electricity, effectively increasing the carbon emissions of small and medium-sized enterprises that do not participate. This could adversely affect the nation's net-zero carbon emissions initiatives.

2. Undermining the Development of Offshore Wind Power:
Offshore wind power is a critical pillar of Taiwan's energy transition, relying on clear market demand for stable development. The introduction of the RE30 may prompt companies to opt for Taipower's low-carbon electricity rather than purchasing offshore wind power. Such a market shift could lead potential buyers to hesitate or even forgo their offshore wind power acquisitions, thereby impeding the sales and development progress of wind power developers.

3. Disruption of the Green Power Market Mechanism:
As a state-owned enterprise endowed with vast resources and market advantages, Taipower's direct sale of low-carbon electricity to end users under the RE30 could interfere with the green power trading market, placing private operators at a competitive disadvantage. Should private green power operators withdraw from the market, the domestic development of green power would again become overly reliant on Taipower, lacking a market-driven, diversified supply model. This scenario may result in sluggish growth in green power trading volumes, ultimately hindering companies’ net-zero targets and the nation's overall energy transition.

Since its establishment on January 19, 2024, TREA has actively facilitated green power trading partnerships between electricity sales companies and the corporate sector. It has organized 3 networking events for electricity sales professionals as well as 3 green power matching events spanning the northern, central, and southern regions, and has encouraged industry operators to sign the "Renewable Energy Electricity Sales Self-Regulatory Code" to enhance market mechanisms and invigorate the green power trading platform.

Concurrently, industry developers have engaged with the Energy Administration, the Bureau of Standards, the Certification Center, and the Fair Trade Commission to promote the robust development of the green power market, assist companies in fulfilling their green power usage commitments and achieving RE100 targets, and advance the net-zero transformation. However, the recently proposed RE30 pricing mechanism by MOEA has raised concerns that it may cause confusion in market products and pricing, undermine the green power trading framework and re-supply system established over the past 5 years of electricity market liberalization, and conflict with the government's initial integration of "Bundled REC System." Industry stakeholders are calling for a thorough policy reassessment and a postponement of its implementation.

Note:
Electricity classification management:
A classification management strategy that divides electricity into "pure green electricity, low-carbon electricity and general electricity" according to the amount of carbon emissions. The concept of RE30 low-carbon electricity is a green electricity price, which adds a "green electricity surcharge" to the existing general electricity price. Taipower plans to launch the "RE30" low-carbon electricity product that mixes 30% green electricity from 2025. It is a relatively easy way to purchase green electricity to meet the green electricity needs of different companies.