RE100 head calls on Taiwan to remove fossil fuel subsidies

Taipei, July 4 (CNA) The RE100 head on Thursday called on Taiwan's government to remove subsidies for fossil fuels to further boost the development of the renewable energy market.

Speaking at a renewable procurement forum in Taipei, Sam Kimmins, director of energy at the Climate Group, an international nonprofit that co-launched RE100, also welcomed Hon Hai Technology Group (Foxconn) to the RE100 family with the commitment to sourcing 100 percent renewable electricity across its global operations by 2040.

Foxconn formally became a member of RE100 on Thursday, according to the manufacturing giant.

RE100 is a global corporate renewable energy initiative that calls for businesses to commit to 100 percent renewable electricity and now has 34 company members headquartered in Taiwan, including Taiwan Semiconductor Manufacturing Co. (TSMC) and Hon Hai.

The 34 members represent just over 10 percent of Taiwan's electricity demand, Kimmins said.

In 2023, the country's total electricity consumption was around 277 terawatt hours, according to the energy administration.

Kimmins noted that around 98 percent of Taiwan's energy is imported, representing not only an enormous cost but also an energy security risk, and "the great thing about renewables is you produce them here in Taiwan."

As an export economy, Taiwan is heavily reliant on exports and its customers, such as Google, Amazon and Apple, are increasingly asking for products to be made using 100 percent renewable electricity or carbon free measures, the RE100 director said.

However, while demand is high, there are barriers to mass access for every company in Taiwan to renewable energy, and the relatively high price of renewable electricity is one major hurdle.

Kimmins said one reason the price remains high may be that the tipping point for a decrease has not yet been reached.

"The Global Wind Energy Council has a model predicting that once a market achieves around three to four gigawatts of [installed] offshore wind power, not only do you have a steady decrease in price, you have a sudden step down in price," he explained.

Taiwan's offshore wind market has not yet achieved the scale, but it is on track for three gigawatts by the end of this year and up to 5.6 gigawatts in 2025, he said. "So you're soon hitting the tipping point predicted by GWEC."

Another factor that has kept the renewable price relatively high is that subsidies for fossil fuels keep the non-renewable electricity price "artificially low," the director said.

Removing subsidies for fossil fuels would create a level playing field for renewable electricity, he added.