Hwai-Derg Chiang, PhDDirector, New Energy Research Division

Energy & Resources Labs, ITRI

e-mail: hdc@itri.org.tw

PROMOTION OF DISTRIBUTED GENERATION AND RENEWABLE ENERGY IN TAIWAN

OUTLINE

( I ) New Trends in Electric Grid Infrastructure

( II ) Challenges for Distributed Generations (DG)

(Ⅲ) Targets for DG & RE Development for

Taiwan

(Ⅳ)Strategy of RE Promotion for Taiwan

(V) Concluding Remarks

( I ) New Trends in Electric Grid Infrastructure

• Global Warming

The Kyoto Protocol of 1997 is bringing the need to reduce CO2 emission to the public awareness and shaping National Energy Policies

• Sustainable Development

The global awareness and demands for Clean and Renewable Energies (RE) is driving the need for Distributed Generation (DG) due to the smaller sizes of RE

Definitions

• Distributed Energy Resources (DER, DR) – generates or stores electricity– located at or near a load center– may be grid-connected or isolated– has a greater value than grid power

• Distributed Power (DP) 5-100,000kW– local distribution, storage, and interconnection

systems

• Distributed Generation (DG) – “prime movers” such as solar, wind, fuel cells,

micro-turbines, combined heat and power systems

• Dispersed Generation– located at customer facilities or off-grid systems

DERDP

DG

Central Station Generation

Central Generation

Customers

© Distributed Utility Associates, Used with Permission

• environmental impact

• security

• T&D investment

• area supply/demand unbalance

• poor power quality

• long distance power transmission

Problems we face today:

Distributed Energy Resources

Customer Efficiency

RemoteLoads

Wind

PV

Genset

Fuel Cell

Battery

Central Generation • fuel flexibility

• improve air pollution

• deferred or reduced T&D costs

• electric utility deregulation

• power quality

• co-generation

DER challengesDER challenges::Cost Simplified interconnection capability

Operation of the DG System

Genset Wind Photovoltaic

Central Generating Station

~~

TransmissionLine

RegionalDispatch

Distribution Substation

Energy Value Information

SmartController

Battery

Communication& Control Links

Distribution Line

Factory Town Remote LoadElectric Power

Monitoring & Control Lines

© Distributed Utility Associates, Used with Permission

Comparison of DG Technologies

Source: The Role of Distributed Generation in Competitive Energy Markets, !999 Gas Research Institute

( II ) Challenges for Distributed Generations

• There are substantial regulatory and business challenges for DG:

(1) Interconnection standards

(2) Deregulation of State-own utilities and formation of ISO

(3) Smart/net-enable metering

(4) Pricing for Renewable Energy

(5) Environmental & Land-use issues

(6) Public acceptance of DG & RE

(7) Disturbance to Network Stability and Control

(Ⅲ)TARGETS FOR DG AND RE FOR CHINESE TAIPEI

• In May 1998, the National Energy Conference was held and concluded that: – Renewable energy shall contribute 3% of total energy supply in 2020

(4.6% including large hydro powers)

– Establish the “new and clean energy R&D planning group” to assess the potential for utilizing new and renewable energies, set up targets, develop roadmap and promotion strategies

– Commit NT$ 10 billions over 5 years(2000-2004) into the Energy Fund for the promotion of renewable and clean energies , energy conservation, upgrading energy efficiency, and conduct R&Ds

• Revision to the “Electricity Law” proposed a deregulated Utilities, formation of ISO and dispatch rules to allow for DG

The Government Role

Technologies

Policies

Markets

Support RD&D in advanced energy technologies

Address regulatory and remove barriers

Establish cost-shared RD&D partnerships with industry and others

Distributed Energy Resources marketplace which operate safely and reliably, providing electric energy or ancillary services of high quality, with minimal environmental impact, and at reasonable prices.

RENEWABLE ENERGY TARGETS FOR CHINESE TAIPEI

1. Targets for 2010 & 2020 are 2.3 and 4.8 times of that in 1999.

2. Waste-to - energy shares

constitutes the largest

proportion.

(similar to Japan)

Notes: 1. The numerals on the top of the bar chart are the renewable energy production and the share of total energy supply respectively in that year. 2. The total energy supply in 1999 is 98 MKLOE. The forecast presents the total energy supply in in 2004, 2010, and 2020 should be 110, 139, and 167 MKLOE in 2004, 2010, and 2020, respectively.

0.000

1.000

2.000

3.000

4.000

5.000

1999 2004 2010 2020 YEAR

Ene

rgy

Pro

duct

ion ( MKLOE/y)

82.5%

6.7%10.8%

1.053MKLOE/y1.07%

1.425MKLOE/y1.30%

61.8%

9.0%

6.5%

6.5%

6.2%5.5%

4.5%

71.6%

0.9%

8.6%

6.0%

2.4%7.5%

3.0%

80.1%0.2%

8.6%0.8%9.1%

1.2%

2.376MKLOE/y1.71%

5.045MKLOE/y3.02%Items 2000-2004

Capacity increment 2004 Annual

production (MKLOE)

Geothermal Energy 10.0 MW 0.017 Small hydro 20.0 MW 0.130 Energy crops 0.0 MW 0.000 Wind Energy 18.0 MW 0.011 Solar Water Heater 800 km2 0.122

PVs 6.7 MW 0.003 Waste to Energy 145.9 MW 1.142 Total 200.6 MW 1.425

(Ⅳ) STRATEGY OF RENEWABLE ENERGY PROMOTION

(1) Utilizing varying strategies for technology in different phases

Phase I: Research andDevelopment Phase

Technologies and new products underdevelopment

PhaseⅡ :Demonstration Phase Government-supported field studyfocussing on validating technology andeducating people to raise awareness

PhaseⅢ :Promotion Phase Promoting utilization through subsidyprogram to stimulate market size.

PhaseⅣ:Dissemination Phase Promoting utilization through educationand public awareness program.

(Ⅳ) STRATEGY OF RENEWABLE ENERGY PROMOTON ( cont .)

(2) Phase of Progress and strategy for renewable and clean energy development in TaiwanPhase of Progress and strategy Period

item 2000-2004 20052010 2011-2020

(1).solar thermal Spreading (in progress) dissemination dissemination

(2).solar photo-voltaic Demonstration(inprogress);Establishment ofdomesticPV industry

spreading dissemination

(3).wind Demonstration Spreading dissemination

(4).geothermal Demonstration Spreading dissemination

(5).hydro power Spreading dissemination

(6).gasohol R&D demonstration Spreading dissemination

(7).biodiesel R&D and demonstration Spreading dissemination

(8).biomass gasificationfor power generation

R&D Spreading dissemination

(9)hydrogen frombiomes

R&D Spreading dissemination

(10)ocean thermal Small-scale R&D; interrelation cooperation; then Small-scale demonstrationAfter key technologybreakthrough

(11).biogas power Spreading Spreading dissemination

(12).biogas Spreading dissemination

(13).power from wastecombustion

Spreading(in progress) dissemination dissemination

(14).gasfication forpower generation fromwaste

R&D; demonstration Spreading dissemination

(15).heat utilization ofwaste

R&D; demonstration Spreading dissemination

(16).waste heat R&D; demonstration Spreading dissemination

(17).electric vehicle R&D; demonstration Spreading dissemination

(18).fuel cell R&D Spreading dissemination

(19).IGCC Small-scale R&D;waiting fortechnology transfer fordemonstration

Spreading dissemination

(Ⅳ) STRATEGY OF RENEWABLE ENERGY PROMOTION(CONT.)

Incentive Measures Subsidy Means Ratio ofsubsidy toinstall. cost

Object of subsidy

Subsided based on type and effective areaof collector ( in NT$/m2)

Taiwan dist. Islands

Subsidy Laws for Buying SolarThermal Systems (pub. Jan. 26,2000)

1.covered flat plate: 1,500 3,0002.vacuum tube: 1,500 3,0003.uncovered flat plate: 1,000 2,5004. others: approved by case

15~20% 1. End-user (citizen or corporatepersons) buying approvedproducts

2. Only new products

Subsidy Laws for Demo. Of WindPower System (pub. March 22,2000)

< NT$1,6000/kW <50% Citizen or corporate person buyingdemo system in Taiwan and herdistant islands

SystemSubsidy

Subsidy Laws for Demo. ofPhotovoltaic System (Pub. May 31,2000)

1. stand-alone: < NT$110,000/kWp2. grid-connected: < NT$150,000/kWp

<50% Citizen or corporate person buyingdemo system in Taiwan and herdistant islands

Industry Promotion Laws (pub.Oct.31, 1999)

Tax Exemp-tion &FinancialLoad

Investment Exemption Regulationsfor Companies buying EnergyConservative Machines or UsingMachines or Technologies by New& Clean Energy (rev. July 19, 2000)

1. exemption of business earning tax 10-20%

2. two year of early depreciation3. low interest loan: discount

2.125%~2.25% of interest rate ofprimary loan of Chiao-Tung Bank

- Only company which buying asolar thermal system, aphotovoltaic system, or a smallhydraulic power system

Rate of Buying Electricity 1. Buying up with the electricity price ofcogeneration power plants ( > 20% cap)

2. subsidy program of biogas power systemof waste farm

- 1. small hydraulic, geothermal, andwaste power system

2. biogas power system form wastefarm

(3). Incentive programs

PROMOTION OF WIND ENERGY

• Promotion of Wind Energy Demonstration Systems– Announced “Measures for Subsidizing Wind Power Demonstration

Systems” in March 22, 2000.– Subsidizes successful installations up to NT$ 16,000/ kW, with an

upper limit of 50% of the total investment.– Sponsors “Demonstration & Promotion of Wind Energy Project” with a

target capacity of 18 MW by 2004.

• Installations to date– Developer ： Formosa Heavy Industry Ltd.

• 4 Vestas/660 kW wind turbines installed in Mai-Liao Industrial Park, Yun-Lin and commissioned in December 2000

– Developer ： Taiwan Power Company• 4 Enercon/600 kW wind turbines to be installed in Chung-Tun,

Peng-Hu and commissioned by the end of 2001

APPLICATIONS OF WIND ENERGY (cont.)

Mai-Liao wind energy Demo system（ Capacity:2640 kW, 4 units of

Vestas/660kW）

PROMOTION OF PHOTOVOLTAIC

• 20 units has been installed with total capacity of 100 kW, mainly for meteorology, lighting, communication, and R&D demonstrations.

• Established building-integration PV module technology , 20% cheaper than comparable imports.

• Developing single crystalline solar cell technology and transferring to Shihlin Electric& Engineering Corp. for mass production. There are now 4 solar cell manufacturers, total production capacity is over 6 MW/year.

APPLICATIONS OF PHOTOVOLTAIC (cont.)

• Energy Commission promotes PV Demonstration and plan to subsidize up to 6.7 MW from 2000 to 2004

• In 2000, 8 PV applications were evaluated and approved, with total installed capacity of 60 kW.

• In 2001, 15 PV applications passed evaluation in the first review, with installation capacity of 115 kW.

APPLICATIONS OF PHOTOVOLTAIC (cont.)

A 1.8 kWp single crystalline PV power generation system to supply indoor lighting, etc.

A 1.68 kWp Amorphous PV power generation system to drive a 0.5RT air conditioning system

A 3.15 kWp single crystalline PV power generation system to 3.15k to drive a 1.0 RT air conditioning system

A 10 kWp polycrystalline PV power generation system to drive all electrical systems in a observation station

PROMOTION OF SOLAR THERMAL SYSTEMS

• Stage I (1986 - 1992)– market growth: annual installation of solar collector area from 5,000

㎡ /year up to 80,000 ㎡ /year– installation: totally installed collector surface area over 310,000 ㎡

• Stage II (2000 - 2004)– expected market growth:annual installation of collector area from

100,000 ㎡ /year up to 200,000 ㎡ /year– installation & energy benefit

• 1986~2000 totally installed area of 960,000 ㎡ , with annual output of solar energy about 78,000KLOE.

• expected another 800,000 ㎡ installed by 2004.

• Development of industry– Via the activities of subsidy measures, over 18 makers established, with

annual market about NT$800M

APPLICATIONS OF SOLAR THERMAL SYSTEMS (cont.)

Eff. Testing System for Solar Water Heater（ CNSB7277 No. 12558 Code ）

Eff. Testing System for Collector(ISO9806-1 Code ）

APPLICATIONS OF SOLAR THERMAL SYSTEMS (cont.)

Promotion of Solar Water Heater

• Subsidy Program for Solar Thermal Systems• Product Testing• Professional Training• Mass media advertising• Guiding Brochure• Exhibitions• Business Information Analysis

SOLAR AIR CONDITIONING

Solid Adsorption TypeCooling/Air Conditioning

•COP ＝ 0.4•冷凍能力 0.5 RT•再生溫度 < 80oC•冷媒：水•吸附劑：矽膠

Large scale adsorber

Adsorber components

• COP＝ 0.4• Capacity: 0.5 RT• Regen. T. < 80oC• Refrigerant： water• Adsorbent： silica

gel

PROMOTION OF SMALL HYDRO (<20 MW)

• Current Installations: 24 units with a total capacity of 166 MW (including units under operation, retrofitting, and new installations)

• Total Potential : around 540 MW– More economical and feasible sites are around 200

MW (excluding those sites within National Park, and remote mountainous area, etc.)

APPLICATIONS OF GEOTHERMAL ENERGY (cont.)

Locations of geothermal areas in northern Taiwan

APPLICATIONS OF GEOTHERMAL ENERGY (cont.)

APPLICATIONS OF GEOTHERMAL ENERGY (cont.)

Chin-Suei Pilot Plant(3MW, Single Flash Type)

Waste-to-energy Technology

Waste-to-energy potential in Taiwan: 6 MKLOE 31% of overall supply of new and clean energy

Core technologies at ERL/ITRI Biogas utilization technology Utilization of solid refuse derived fuels (RDF-5) Waste liquefaction technology (RDF-6) Waste gasification technology (RDF-7)

Waste sources Municipal wastes: municipal solid waste, sewage sludge

Industrial wastes: tires, paper mill sludge, waste plastics Agri-wastes: rice husk, poultry & pig litter

LiquidFuels

Solid Fuels

Syngas

[CH2] n

RDF- 6

– [CH] n –

RDF- 5

CH4

CO + H2

RDF- 7

Waste– [CH] n–

Gasification

Liquefaction

SeparatingDryingConditioningPelleting

Waste – Technology – Fuels

ShreddingSeparatingDryingConditioningPelleting

Waste RDF- 5

Glass MetalRecycling

Boiler Kiln

Heat Electricity

200 kg/hr RDF Pilot Plant

Advantages Environmental sound Energy recovery efficiently Green renewable energy Low CO2 emission Waste remediation

Capacity: Up to 1,000 kg/hr

Solid Refuse Derived Fuels (RDF-5)

Oxygen-free pyrolysis process

Capacity: Up to 500 kg/hr

Advantages Low temperature operation Easy-transported, high

heating value synthetic liquid fuel

No derived pollutants

Technology output Tech transfer: 3 Patents granted: 2

Liquefaction System for Waste Expanded PS

Partial oxidation process

Capacity: Up to 10 MWth

Advantages Wide range waste application Low pollution emissions High energy efficiency More flexibility in recovering

energy

Technology output Patents applied: 1

Partners: Foster Wheeler Energia YFY Paper Mfg

900 kWth CFBGasification pilot plant

Fluidized Bed Waste Gasification System

(V) CONCLUDING REMARKS

(1) The Promotion of DG and RE would require breakthrough in various regulations (e.g. formation of ISO, dispatch rules, land-use, building codes, grid-connection standards etc), which require inter-agency coordination mechanism to overcome non-technical barriers.

(2) To initiate DG and speed up the utilization of RE, the revision to the “Electricity Law”, the formulation and passage of “Renewable Energy Development Law” and “Renewable energy promotion program” are among the most important actions to be undertaken by the government.

(3) A clear and definite target for RE development has been committed, with good progress to date.