1. 1. Assessment of Renewable Potentials Unit ： MKLOE / y 2

2.  NEW AND RENEWABLE ENERGY DEVELOPMENTS IN CHINESE TAIPEI  THE PRESENTATION FOR POLICY DIALOGUE EWG20 October 16-20, 2000 Cuzco, PERU

3. 2. Assessment of Renewable Potentials 0.000 1.000 2.000 3.000 4.000 5.000 6.000 7.000 8.000 9.000 1999200420102020 YEAR Energy Production(MKLOE/y) 10.9% 11.7% 77.5% 8.6% 0.2% 0.7% 79.9% 9.6% 1.0 % 57.9% 3.1% 7.5% 10.1% 9.4% 8.4% 0.3% 3.4 % 30.3% 19.8% 15.0% 14.3% 7.5% 5.6% 4.6% 3.0% 0.644MKLOE 0.66% 1.770MKLOE 1.61% 3.079 MKLOE 2.22% 8.694 MKLOE 5.21% 3

4. 3. Mid- and Long-term RE Promotion Strategies 4

5. 4. Cost Analysis of Renewable Power Generation 5

6. 5. Cost Analysis of Renewable Power Generation Taipower is currently intending to purchase wind generated electricity at similar price level of cogeneration. Considering wind property, the price would be around NT$ 1.0~1.2/kWh. With a subsidy of up to 50% of capital investment, the payback period would be around 10 to 16 years. 6 Cost Analysis of Wind Energy

7. Taipower is currently intending to purchase PV electricity at similar price level of cogeneration. Considering the property of PVs, the price would be around NT$ 1.0~1.2/kWh. Even with a subsidy of up to 50% of capital investment, it is not possible to recover the costs of PV systems in their lifetimes. Assumptions: capital investment is NT$ 210,000/kW, annual yield is 1,540 kWh/kW, annual O&M cost is 0% of investment, lifetime is 25 years, and discounted rate is 6%. 7 6. Cost Analysis of Renewable Power Generation Cost Analysis of Photovoltaics

8. 7. Targets for the Promotion of Renewables ＊ Ordinary Power Generation means power generation from biogas, sugarcane and other agricultural residues, wastes from paper industry, petroleum coke, waste plastics and derived fuels.  This table is derived more practically from previous potential assessment: According to previous analyses, because the capital investment and energy production costs of renewables are still high, it is a better approach to adopt step-by-step strategies to develop the utilization of renewables. Technologies that are maturer and more economical should be granted with higher priority. Mass production techniques at low costs should be established to promote widespread applications. 8

9. 9 8. Targets for the Promotion of Renewables