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Jiioufenzi

The Drive of the Solar City Project to Lead the Development of Green Technology Industry

  In 2011, the “Taiwan Green Technology Industrial Alliance” (TGTIA) was established to promote for the effect of industrial cluster. In the past four years after its establishment, TGTIA assisted its members to invest more than NT$250 million research funds, and 15 applications successfully acquired grants from the government at the amount over NT$150 million. Additionally, “SMEs Services Team-Green Energy Branch Team” was formed to actively assist enterprises to solve managerial issues. In the past four years, enterprises were assisted to invest approximately NT$14 million in R&D projects while 54 applications of innovative R&D under “Local SBIR Environmental and Green Technology” were granted with subsidies for the creation of annual revenue reaching NT$430 million.

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Fig 1: Commencement Ceremony of TGTIA in 2011

  In order to assist enterprises to gain subsidies for the participation in trade shows and the organization of large-scale expos or events, the Tainan City Government provides the platform for product exhibition and technology exchanges by inviting various suppliers of photovoltaic system installation, cloud monitoring management, relevant components and materials to the designated solar power booth. Meanwhile, working with the Office for the Promotion of One Million Solar Roofs of Bureau of Energy, Ministry of Economic Affairs, we provide relevant counseling of photovoltaic system products and installation policies and technologies. For the past four years in a row, the Tainan City Government organized Green Technology Industry Expo and created the business opportunities at the value of NT$198 million. The “International Biotechnology and Green Energy Business Matching Meeting” was first time organized, and international buyers from 15 countries including Japan and Malaysia were invited to create the business opportunities at the value of NT$1.3920 billion.

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Fig. 2: Biotechnology and Green Energy Expo- Exhibition of Photovoltaic Products (left and the middle); the International Biotechnology and Green Energy Business Matching Meeting (right)

 

Town Policy, Vision or Objective

What is the policy, vision, or objective of the town?

(Please specify the actual goal and its metrics, if applicable)

A. Challenge Issues

1. Global Warming

  

Since the beginning of industrial revolution, humans have been using chemical fuels in excessive amounts and producing high level of greenhouse gases such as carbon dioxide. Within the period of 150 years, the contents of carbon dioxide in the atmosphere doubled. As shown in statistics of the Central Weather Bureau, the average global temperature in the past ten years has increased 0.592 degrees more than that in the past 100 years while in Taiwan, it has been the increase of 0.792 degree. Global warming has brought us environmental impacts such as greenhouse effect, climate change, and rising sea levels. On August 8, 2009, the most painful Fathers’ Day in the history of Taiwan, the striking of Typhoon Morakot was the best evidence of the counterattack of the natural environment. 

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Fig. 3: Global Temperature Changes

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Fig.4: Temperature Changes in Taiwan

  1. 、Prevalent Fine Suspended Particles, PM2.5

Since September, 2013, the Environment Protection Administration issued five warnings for Taiwan’s deteriorating air quality. Dust storm from China began to affect Taiwan. People in Taiwan have been suffering (CommonWealth Magazine). The WHO also lists air pollution as the main environmental carcinogen, and it gives higher risk of lung cancer than secondhand smoking, especially, the most dangerous fine suspended particles PM2.5 that will accumulated in the deep side of human lung. The National Aeronautics and Space Administration (NASA) cited a research conducted by University of North Carolina to compile the map of global air pollution resulting from fine suspended particles indicating the air pollution level from 1850 to 2000, within the period of 150 years. Taiwan cannot escape the fate of having more dark brown color that shows the higher number of death.

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Fig. 5: Global Air Pollution Resulting from Fine Suspended Particles

3. The Inevitable Approach of Low Carbon or

  In the structure of Taiwan’s electricity generation system, 72.78% come from fossil fuels (such as coal, natural gas, and petroleum); among them, nearly 40% are coal burning devices of electricity generation, one of the contributing factors of PM2.5. Fossil fuels will be depleted, and prices are fluctuating. They even result in environmental issues such as air pollution, greenhouse effect, and climate change. In particular, after 311 Japanese Earthquake on March 11, 2011, issues of nuclear safety including the Fukushima Daiichi Nuclear Disaster, radiation leaks, and the final disposal site of nuclear waste brought huge influences and impacts to the world. Countries around the world actively accelerate to look for new energy or alternative one. Renewable energy with the features of low carbon emission and low pollution points the new direction of the solution. The increase of low carbon or zero carbon electricity supply reduces air pollution, benefits the environment, and human health and at the same time, promotes industrial competitiveness. It is the inevitable approach that we will adopt to develop energy.

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Fig. 6: Taiwan’s Electricity Composition in 2014

 Taiwan relies heavily on imported energy and has the isolated electricity grid system, and therefore, it is impossible to import electricity from other countries via grids. The lack of energy independence and the risks brought by greenhouse effect, the development of renewable energy and the use of diversified energy are the inevitable policy measures that Taiwan can adopt. But the development of renewable energy needs to first consider local geographical advantages. Tainan, located at Southern Taiwan and the south of Tropic of Cancer, has the unique advantage of abundant sunshine. Hence, the Tainan City Government selects to develop solar power and hopes that in the future, the roof of each house unit in Tainan City will be installed with the photovoltaic system to gradually realize our goal of low carbon, green energy, and energy independence.  

Brief outline of the low carbon town development plan:

(e.g. description of geographical features, current and planned energy infrastructure, goals of the low carbon town and livability aspect of the town)

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  1. Taiwan’s Number 1 Abundant Sunshine

  From the Dutch ruling to Ming and Qing Dynasty, Tainan was Taiwan’s political and economic center that benefited from the fishing and salt making businesses. The earliest developed salt field at Rushing Current Mouth now the site of internationally well-known Jingzaijiao Tile-paved salt fields and Cigu Salt Mountain punctuating the advantageous conditions of Tainan with the annually average 2,181 sunshine hours and the generation of annual capacities of 1,343 KW. As a result, Tainan has the advantages to develop itself into the solar power city.

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Fig. 7: Tainan Being #1 according to Statistics of Annual Electricity Generation from the Photovoltaic System per KW Conducted by Bureau of Energy

  1. Comprehensive Green Industrial Chain

  Green New Deal constructs low carbon sustainable environment and has become the important trend for the development of global cities. The green technology industry provides the opportunity for sustainable development. The green energy industry in Tainan City includes 132 enterprises engaged in renewable energy and energy saving. Among them, there are about 50 solar power factories ranging from makers of upstream silicon chips, middle stream solar cell modules, to downstream photovoltaic system application and products and forming the comprehensive industrial chain. Tainan City is also the important site of Taiwan’s domestic solar cell manufacturing. The two benchmark enterprises, Motech and Neo Solar Power, the leaders of Taiwan’s solar power industry, generate the world’s number 1 revenue of solar cells.

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Motech and Neo Solar Power

Fig. 8: Tainan’s Comprehensive Solar Power Industrial Chain

  1. The Promotion Office in Southern Taiwan for One Million Solar Roofs

  

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Fig. 9: The Commencement Ceremony of the Promotion Office in Southern Taiwan on March 23, 2013

B. Five Items for Promotion

  

The development of renewable energy that suits local demands needs to also consider the high density and crowded population in Taiwan. Due to the high value of land, we choose to make use of the idle spaces to install photovoltaic system as the main source to develop renewable energy.  In 2011, the “Solar Power City” was launched with the goals to promote five items including solar public housing, solar roofs, solar communities, green factories, and agriculture greenhouses. Flush connection is used for tilt roofs, and trellis photovoltaic systems are installed on the dead-level roofs without any interruption of original spatial use of roofs.

  1. Solar Public Housing

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Fig. 10: On-site Observatory Visits

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Fig. 11: Demo Result: Installation of Monitoring System at the Lobby of Public Housing Installed with Photovoltaic System on the Roof

2. Solar Roofs

  We have shared the successful cases of solar public housing and promoted the installation of photovoltaic systems on the roofs of private buildings. Through seminars and observatory meetings, the public has been encouraged for the use of idled roof to install photovoltaic systems that can increase income of electricity sales and at the same time, the roof temperature can be reduced by two to three degrees to save the electricity expanses.

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Fig. 12: Private Housing in North District (left); Private Housing (right)

3. Solar Communities

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Fig. 13: Installation Result of Loudafang Community in Shanhua District (Trellis Installation without Interruption of Spatial Use of Roof)

4. Green Factories

  During operation, the temperature at factories rises, and factory roofs are often the idle spaces not in use. If roofs can be installed with photovoltaic systems, the temperature at factories can be reduced to cool down workplace temperature and to cut down electricity bills. At the same time, electricity generated can be sold for additional income and enterprises can build their green business image. In order to encourage and counsel the installation, we actively visit each administrative districts and industry parks to conduct seminars for factories, business buildings, and gas stations. Positive recognitions have been received from the participants.

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Fig. 14: Seminars on Green Factories

  

5. Agricultural Facilities

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Fig. 15: Joint Organization of Seminar on Agriculture Greenhouses with Southern Taiwan Promotion Office of the Bureau of Energy

“After installing the photovoltaic system on the roof top of pig pen, it becomes cool. Look, my piglets are so happy. They grow well, and I can sell them at good prices. Additionally, I have the income for selling electricity, and I am happy, too,” said the owner of a pig farm in Houbi.

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Fig. 16: An Example of Photovoltaic System Installed on Agricultural Facility (Houbi District-499.79 KW)

  • Challenges
  1. Difficulty to Convene Owners’ Meetings for Apartment Buildings and Strict Requirements for the Adoption of Resolutions

For the installation of photovoltaic systems on apartment buildings, either by the Building Management Committees or constructors who rent the roofs, owners’ meetings need to be convened according to Article 30-34 of Enforcement Rules of the Management Act for Apartment Buildings that requires the attendance of more than 2/3 of all owners and the agreement of more than 3/4 attendees to adopt any resolution. If there has been resolutions adopted, a second meeting needs to be convened hat requires the attendance of more than 1/5 of all owners and the agreement of more than 1/2 attendees to adopt any resolution.

  1. Annually Reduced Purchase Prices Lower the Willingness to Rent

  It is costly to install the photovoltaic system on the roof, so most apartment buildings adopt the approach of solar public housing to rent roofs to system suppliers. The suppliers bear the costs of installation and own the electricity sales income while the building committees collect roof rents (at a fixed amount or calculation according to the percentage of electricity sales). The regulated feed-in tariff of solar power decreased by one percentage annually, and that will prolong the return time. System suppliers will reduce their willingness to rent roofs of apartment buildings.

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Fig. 17: Annual Feed-in Tariff of Solar Power

(Example of roof installation between 1 KW and 20 KW)

  1. Complicated Review Processes of Compound Installations with TaiPower and the Prolonged Time for Administration

  Initially, the public and solar power system suppliers (hereinafter referred to as the Applicants) did not understand well about the review operations of compound installations with TaiPower. There was gap between the awareness of applicants and relevant review rules of TaiPower, and therefore, applications were rejected due to the lack of understanding. Some applicants thought staff of TaiPower in charge of reviews gives them the hard time. Furthermore, the long process of joint reviews delayed the submission to the Bureau of Energy of Ministry of Economic Affairs that gives approval to the applicable feed-in tariff of solar power.   

  1. High Installation Cost of Photovoltaic System

  Over the past five to six years, the production cost of solar power per kilowatts decreases along with the reduced material costs from one to two thousand dollars. For example, a common 20-ping townhouse in Tainan is normally installed a set of 7 watt photovoltaic system at the cost only NT$420,000 to 630,000, much cheaper than before. Due to the impacts of negative growth of Taiwan’s salary structure and inflation, however, the cost is still a burden. At the same time, rules regulate the installation should be jointly conducted with TaiPower for the convenience of electricity purchase. If the installation site has insufficient grid loading capacities or feeder lines or not connected with electricity, TaiPower may even collect extra line fees at the amount higher than NT$100,000 bring excessive burden to the public, becoming the obstacle for joint installation, and reducing the willingness of installation. 

D. Countermeasures

1、Building of Solar City Information Web

  Solar power policies and events should be updated from time to time for the public to conduct real-time searches. With the setup of parameters, installers are assisted with the evaluation of loan interest expenses, monthly incomes, and years of return. Relevant information of enterprises will also be updated for the public to exchange and contact them. Interactive message board is built and designated personnel is in charge of replies to questions.

  1. Organization of more than 150 Seminars in Four Years

  We visited districts, lis, communities, and industry parks in Tainan City, and borough chiefs, secretary, or residents, chairpersons, secretary generals or residents of community management committees, and enterprises and factories were invited to explain installation rules of photovoltaic systems, feed-in tariff, and promotion strategies and subsidy projects of the City Government to enable the public participants to know about the intention and benefits of the installation of photovoltaic systems so as to convey the determination to build low carbon great Tainan. Meanwhile, successful installation cases were invited for experience sharing to reduce public concerns and to improve installation willingness. Seminars helped to gather the public with the installation willingness, and they were trained to become solar lecturer to introduce the new concepts of solar power. The green seeds planted by these solar lecturers, thus, blossom at every corner of Tainan.

  1. Use of Residential Buildings without Participation in Tender Mechanism

  Although the feed-in tariff is reduced annually, yet through the efforts of Tainan City Government and its counterpart local governments, Points Governing Tender Operation of Ministry of Economic Affairs was amended to open the installation of photovoltaic systems on roofs between 1 WT to 100 WTs and there has been no tender participation required. Those meet the specific conditions can be calculated separately as the incentives for suppliers to rent roofs of apartment buildings to install photovoltaic systems.  

  1. Enactment of Subsidy Measures for the Encouragement of Installation
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Fig. 18: Additional Subsidies for Solar Communities

  1. Seminars Organized at the Beginning of Each Year for Equipment Review Operation

  In order to speed up the review processes, at the beginning of each year, the “Seminar on the Solar Power Project and Equipment Review Operation” has been organized to describe installation process, items of attention for reviews, and error types for the applicants of solar power projects and equipment registration to facilitate smooth operation, to shorten the application time, and to reduce the time for application amendment.

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Fig. 19: Seminar on Solar Power Projects and Equipment Review Operation

  1. Inter-departmental Cooperation for Joint Strategy Promotion

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Fig. 20: Inter-departmental Cooperation Mechanism

  1. The First City Entrusted by Ministry of Economic Affairs for the Ratification of Photovoltaic Equipment

  In addition to cooperation with Southern Taiwan Promotion Office for the Installation on One Million Roofs of the Bureau of Energy of Ministry of Economic Affairs for the organization of seminars to promote the installation of photovoltaic systems on various building roofs, the Tainan City Government via exchange meetings of system technologies and system communication platform meetings collected the opinions of the public and suppliers in advance to submit to the central government or TaiPower to facilitate technology exchanges and solve installation problems. In order to provide convenience for installers to apply, after the active proposals of the City Government, Tainan City on July 14, 2014 became the first city entrusted by Ministry of Economic Affairs to ratify photovoltaic equipment. In 2015, Tainan City Government continues the entrusted task and receives the application capacities expanding from 30KW to 50KW not required for open tenders. This provides more comprehensive administrative assistance to the solar city projects by giving comprehensive one-stop services including promotion (organization of seminars), counselling (district service windows), subsidies (grant and encouragement provision), and applications.

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Figure 21: Counselling for Public Application

  1. Organization of Courses for Reviews of Compound Installations

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Fig. 22: Seminar on TaiPower’s Review Operations for Compound Installations

  1. Counselling and Consulting with Banks and Enterprises to Set up the Solar Power Financing Project

 It is costly to set up a set of photovoltaic system. Although in 2011, under our effort, Cathy United Bank provided the financing project for the installation of photovoltaic system on residential roofs for the public who install 3 to 10 KW photovoltaic systems at 80% cost, the maximum amount of NT$1 million, with the payback time from ten to 15 years and the annual interest rate of 4.08% for the first three years, on their house roofs. But in general, the provision of loans by domestic financial sector has been conservative and requires to use houses for mortgage and complicated process. These obstacles discouraged the public. With our active assistance to build the friendly environment for the installation of photovoltaic system, in 2014, the inter-industrial cooperation between Tatung and Bank SinoPac was facilitated to launch the innovative financing project of photovoltaic systems that has overturned market rules to provide the maximum loans at full amount with the longest 16-year payback term and free of mortgage of real estates. With the only photovoltaic system, applicants can meet the mortgage requirement. Because the income of electricity sales is sufficient to pay back the loans, this project not only allows the owners to have a set of photovoltaic system but also generates extra income.   

  1. Green Energy Action from the Private Sector- Solar Lecturers

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Fig. 23: Sharing by the Solar Lecturer

  1. Cooperation with Photovoltaic System Suppliers and the Industrial Association

  In order to let the public better understand the practical problems that they may face when applying the installation of photovoltaic systems, the City Government from time to time invites the Photovoltaic System Trade Association to jointly organize seminars. With the objective perspective and systematically integrated resource advantages, installation cases of association members are shared. The Association also talks on the difficult cases or its role as the mediator of system installation to enhance public trust and installation willingness to avoid the isolated cases from the system (due to poor construction quality or bankruptcy or runaway of system suppliers).

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Fig. 24: Seminar on Autonomous Rules Co-organized with the System Trade Association

  Additionally, the City Government from time to time actively convene meetings for the communication between the industry and the government by inviting Southern Taiwan Promotion Office of the One Million Solar Roofs, the System Trade Association, the Photovoltaic Industrial Association, and local representatives to discuss and propose valuable suggestions on the promotion polices of solar power and future development in Tainan. Promotion measures are thus properly amended and proposed to the Bureau of Energy of Ministry of Economic Affairs by the City Government to express the opinions and difficulties of the industry so as to help the development of the photovoltaic industry.  

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Fig. 25: Discussion Meeting of the Promotion of Solar Power Policies and Future Directions in Tainan City

  • Promotion Achievements

1、The Winning of “the Only Low Carbon Demonstration City in Southern Taiwan” in 2011

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Fig. 26: Tainan City Selected as “the Only Low Carbon Demonstration City in Southern Taiwan” on August 4, 2011

2、Better Outcomes for the Five Promotion Items of Solar Power City 

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Fig. 27: Numbers Approved under the Solar Power Tainan in the Past Years

 

Fig. 28: Installation Capacities Approved under the Solar Power Tainan in the Past Years

  • Future Prospects
  1. Continuous Private Green Energy Action

  

  1. The On-going Process to Build the Solar Power City, Tainan

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Fig. 44: Geographical Location of Jiioufenzi Low Carbon Demonstration Community

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Fig. 45: Simulation of Jiioufenzi Low Carbon Demonstration Community

What is the policy, vision, or objective of the town? Please specify the actual goal and its metrics, if applicable.

The development of renewable energy that suits local demands needs to also consider the high density and crowded population in Taiwan. Due to the high value of land, we choose to make use of the idle spaces to install photovoltaic system as the main source to develop renewable energy. In 2011, the “Solar Power City” was launched with the goals to promote five items including solar public housing, solar roofs, solar communities, green factories, and agriculture greenhouses. Flush connection is used for tilt roofs, and trellis photovoltaic systems are installed on the dead-level roofs without any interruption of original spatial use of roofs.

In 2011, the Solar City Project was launched; the City Government provided comprehensive services for promotion (organization of seminars), counseling (services windows at different districts), subsidies (for financial encouragement), and application reviews. In coordination with the mandatory measures of autonomous regulations, the determination to build great Taiwan into a low carbon and green energy city was conveyed. For the promotion in the past four years, the Tainan City Government approved 1,795 solar energy installation and ten solar community applications with the capacity over 93 megawatts. In the future, the capacity is expected for a continuous growth to achieve the goal of building “the Solar City-Great Tainan” that reduces carbon emission and generates green energy.

Brief outline of the low carbon town development plan

1. Building of Solar City Information Web
2. Organization of more than 150 Seminars in Four Years
3. Use of Residential Buildings without Participation in Tender Mechanism
4. Enactment of Subsidy Measures for the Encouragement of Installation
5. Seminars Organized at the Beginning of Each Year for Equipment Review Operation
6. Inter-departmental Cooperation for Joint Strategy Promotion

Estimated cost savings in implementing low-carbon measures (per year/per unit of energy, etc.)

Residential sector, Fuel cells, 150 $US/household/year (per year/per unit of energy, etc.).

The approved number of the installation of photovoltaic systems in Tainan reached to 1,795 with the annual electricity generated exceeding 116.92 MW for the use about 32,698 households. If we calculate the price at the basis of NT$2.8624 per watt, about NT$334.69 million has been saved.

What central/local government departments are/will be involved in development of the project?

Since the Renewable Energy Development Ac was promulgated by the Central Government on July 8, 2009, the solar power related projects have been boomingly launched in various cities and counties. In coordination with the central policies and the positioning of Tainan City, the Tainan City Government in 2011 began to promote the Solar Power City Project. In order to enable city residents and enterprises to understand its policies on the solar power city, the City Government actively conducted promotion seminars, established Tainan Solar Power City Information Web, coordinated with banks for the financing projects of photovoltaic system installation, enacted Tainan Low Carbon City Autonomous Rules to regulate electricity users more than 800KW should install more than 10% PV for the electricity used, and provided subsidy measures to promote the Solar Power City Project.

What private company, non-government ogranizations are/will be involved in development of the project?

Since its promotion for the Solar Power City Project, the Tainan City Government in order to encourage private and non-governmental organizations to install photovoltaic systems provided subsidies. Subsidies will be allocated for the installation of photovoltaic systems on legal buildings after applications. Enterprises and NGOs will install photovoltaic systems due to the subsidies. Additionally, Tainan Low Carbon City Autonomous Rules are enacted to electricity users more than 800KW should install more than 10% PV for the electricity used. Those who violate will be punished. With both incentives and mandatory enforcement, enterprises are requested to fulfill their social responsibilities and jointly work to achieve the vision of a low carbon and green energy city.

How is/will be the development of the town funded?

At present, the Tainan City Government has allocated the subsidy budget to promote the collective installation of photovoltaic systems in communities with better incentives. It is hoped that with the demonstration of highlight green energy areas, solar communities after completion can become the local green model and the best energy teaching material for children. Tainan then is not only a historical and cultural city but also a high-tech and low carbon one.

Other relevant information

According to statistics, from 2011 to 2014, the number of the installation of photovoltaic systems approved in Tainan City reached to 1,795 with the total capacities exceeding 93 MW and annual power generation capacities over 116.92 MW equivalent to 42.5% of electricity generated by Zengwen Reservoir that can supply for the use of 32,658 house units and reduce over 60,000 tons of carbon demission equivalent to that done by the annual reduced amount of 187 Tainan parks, occupied about 5,451 hectares and saving over NT$91.37 million.

After the effort of another eight months, by August 31, 2015, Tainan City had 2,596 approved PV installation applications with the capacity of 144 Mw and annual power generation of 180.41 million Kwh equivalent to 65.61% of power generated by Zenwen Reservoir as well as the carbon emission reduction over 93,000 tons, equivalent to the reduction done by 289 Tainan Metropolitan Parks. We are continuously improving.


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