Recent Publications

Taiwan Economic Research Monthly Unpacking Taiwan’s Green Electricity Market: From FIT and PPAs to Market-Based Trading ‧ Early in Taiwan’s renewable energy development, the Feed-in Tariff (FIT) provided fixed prices and long-term purchase guarantees, reducing investment risk and spurring deployment. As the Electricity Act liberalized direct supply, wheeling, and renewable energy retailing, Corporate Power Purchase Agreements (CPPAs) and renewable energy certificates were established, enabling policy support and market transactions to coexist. International experience shows that marketization relies on Feed-in Premiums (FIPs), Contracts for Difference (CfDs), competitive auctions, and market trading, which can establish an appropriate division of roles among investment certainty, price signals, and market risk. RE100, the Science Based Targets initiative (SBTi), the EU’s Carbon Border Adjustment Mechanism (CBAM), and supply chain decarbonization requirements continue to drive corporate green electricity demand. However, firms of different sizes vary in procurement and bargaining power, resources, and risk-bearing capacity. This month’s feature articles examine FIT’s continuing policy functions and role adjustments, how FIT can be linked to the market, and corporate green electricity demand and access conditions. Drawing on price formation and risk allocation mechanisms in mature international markets, they then explore institutional and product innovations, including time-of-use (TOU) green electricity pricing, Virtual Power Purchase Agreements (VPPAs), 24/7 Carbon-Free Energy (24/7 CFE), and centralized trading, to outline possible directions for Taiwan’s green electricity market.