August 31, 2022

“Green Leasing Program,” an Easier Way to Buy Green Electricity with T-REC

The Bureau of Standards, Metrology and Inspection (BSMI), Ministry of Economic Affairs, recently launched the "Green Leasing Program" to extend its service under the “Pilot Program of Renewable Energy Certificate Transaction for Multiple Users in Single Electricity Account Number.” ^Note The program will assist tenants of commercial buildings or similar type of collective buildings in buying T-REC certified green electricity through the current power wheeling mechanism to achieve their goals of corporate sustainability or meet the requests for participating in RE100, CDP or supply chains. Two life insurance companies, Cathay Life Insurance and Shin Kong Life Insurance, took the lead to participate in this program, which is planned to be fully operated in the third quarter of 2022.

Expanding the use of renewable energy has been one of the government’s strategies to achieve net zero emissions by 2050. In addition, the global attention to Environmental, Social and corporate Governance (ESG) prompts business operators to look for instruments that can manifest their dedication to meeting the ESG criteria. T-REC is one of such instruments and has received international recognition. Business operators can use T-RECs as evidence to show the environmental effects they have contributed.

The National Renewable Energy Certification Center under the BSMI issued its first T-REC in May 2017 and the number of T-RECs issued in February 2022 has reached 1 million. The growth signifies a booming market of renewable energy in Taiwan and a certification system that is constantly evolving to address different needs of business operators. In the fourth quarter of 2020, a “Pilot Program of Renewable Energy Certificate Transaction for Multiple Users in Single Electricity Account Number” was implemented, which allows business tenants in commercial buildings that do not hold the electricity account to buy green electricity. Corporates like L'Oréal Taiwan, Yuanta Banks and Yuanta Securities have successfully obtained green electricity under this program.

In response to the diverse business and production models in various industries, the program is further upgraded this year by extending its scope to cover landlords of commercial buildings, who will be the contracting party under upgraded version “Green Leasing Program.” The advantage of this arrangement is that the landlord will have the flexibility to make the best allocation of green electricity required by the tenants. The tenants, on the other hand, can enjoy the service provided by the landlord and buy the exact amount of electricity they need.

The very first buildings participating in Green Leasing Program include commercial buildings owned by Cathay Life Insurance Co. Ltd, (the Headquarters, Cathay Financial Center, Cathay Dunnan Commercial Building and Cathay Dunnan Xinyi Building) and the Shin Kong Life Tower owned by Shin Kong Life Insurance Co. Ltd. They will cooperate with the power generation and retail enterprises to assist tenants in obtaining green power.

The Green Leasing Program can help a wide variety of power users, especially small and medium-sized enterprises, in commercial buildings, collective building or warehouse, to obtain green electricity and T-REC in a more convenient way.

Note: Features of “Green Leasing Program” in comparison with the "Pilot Program of Renewable Energy Certificate Transaction for Multiple Users in Single Electricity Account Number”