Domestic Renewable Energy Certificate Market Transaction Counseling Demonstration Plan

A.  Origin

  To act in accordance with Taiwan's 2025 non-nuclear homeland policy and greenhouse gas reduction targets, expand effective renewable energy applications, and elevate renewable energy power generation ratios to the target of 20%, the President announced the amended articles of the Electricity Act on January 26, 2017, which officially started Taiwan's national energy transformation, enabling the direct supply and transfer of green electricity and free trading in the renewable energy electricity industry. Meanwhile, international enterprises, such as Microsoft, Google, and Apple, have committed to adopting 100% renewable energy and are requiring suppliers to use renewable energy, thereby driving the development of the international green supply chain. While enterprises are being encouraged by international green supply chains to use extensive renewable energy sources, the demand for renewable energy certificates among domestic enterprises is steadily increasing. Nations worldwide have established relevant renewable energy certification systems to provide enterprises proof of renewable energy use.

  To implement the development of energy transformation in Taiwan, the Executive Yuan directed the Bureau of Standards, Metrology & Inspection, MOEA (hereinafter referred to as BSMI) to construct a renewable energy certification system. Through the "Taiwan Renewable Energy Certification Center (T-REC) Development Plan" of the Innovation Industry Flagship Project, the BSMI shall conduct certification affairs in order to stimulate Taiwan's renewable energy market development. To quickly respond to the urgent need for the certification from various industries, the BSMI devised a "Renewable Energy Certificate" as a type of proof of identity for green electricity, which will act as a form of green electricity resume. Through certificate management, power sources purchased or used by the user can be traced, thus certifying the use of green electricity. On April 21, 2017, the BSMI established the T-REC Preparatory Office (hereinafter referred to as T-REC). The BSMI issued Taiwan's first batch of "Renewable Energy Certificates" on May 19, 2017, announced the Establishment Directions for National Renewable Energy Certification Center on June 12, 2017, and released the Voluntary Renewable Energy Certification Implementation Regulations on October 27, 2017. These are important milestones in the promotion energy transformation and serve to accelerate green energy development. Through these endeavors, Taiwan's renewable energy development has also embarked upon a brand new era.

B. Demonstration Purpose and Demonstration Period

  The renewable energy certification market structure covers the certification center, supply side, demand side, and networking agencies. The demonstration plan (hereinafter referred to as the Plan) expects to invite supply side, demand side, and networking agencies willing to participate in the domestic renewable energy certification market, assist them in their participation in the demonstration plan, and test various transaction modes, types, and management mechanisms of the renewable energy certificate, as well as marketability. The Plan will serve as a reference for participants in market transactions before the renewable certification market mechanism matures.

  Starting from the date of implementation and until December 31, 2018, T-REC will invite renewable energy certification providers, demand-side entities, and networking agencies to participate in the Plan and provide counseling to facilitate certificate transactions between supply and demand sides, and process relevant applications and transfer procedures.

C. Demonstration Target and Qualification

  (1) Renewable energy certificate demonstration issuance unit: Taiwan Renewable Energy Certification Center (T-REC), Bureau of Standards, Metrology and Inspection (BSMI)

  (2) Renewable energy certificate supply side: Renewable energy self-use power equipment installers who have acquired renewable energy certificates issued by T-REC, or renewable energy power equipment installers who have not yet declared their environmental benefits.

  (3) Renewable energy certificate demand side: Legal entities (including those that meet the definition specified by the Company Act, which also applies hereinafter) willing to purchase renewable energy certificates, commercial entities (established through registration by competent authority within the region of commercial practice according to Business Registration Act, which also applies hereinafter), non-legal entity groups, or the public sector.

  (4) Renewable energy certificate networking agencies: Legal entities, commercial entities, or county/city governments willing to network participants in renewable energy certification exchange activities.

D. Content of Demonstration Plan

  (1) Renewable energy certificate supply side

    1. When the renewable energy certificate supply side submits the Application of Intent to Sell (including quantity and price to sell), T-REC will disclose the supply side's exchange contact on the information management platform.

    2. After successful matching between the renewable energy certificate supply and demand sides, renewable energy certification buy and sell contracts or relevant assignment documents will be signed.

    3. The renewable energy certificate supply side applies for certificate assignment from T-REC according to contract or relevant assignment documents to process certificate transfer to the account of the demand side.

  (2) Renewable energy certificate demand side

    1. When the renewable energy certificate demand side submits the Application of Intent to Buy (including quantity and price to buy), T-REC will disclose the demand side's exchange contact on the information management platform.

    2. After successful matching between the renewable energy certificate supply and demand sides, renewable energy certification buy and sell contracts or relevant assignment documents will be signed.

    3. After the renewable energy certificate supply side applies for certificate assignment from T-REC, the certificate will be transferred to the account of the demand side.

  (3) Transaction method

    During the entire period of the demonstration plan, renewable energy certificate supply and demand sides can contact and discuss through supply and demand sides' exchange contact liaisons disclosed on the information management platform. T-REC can also provide counseling services to help the supply and demand sides complete the certificate transaction. Legal entities, commercial entities, or county/city governments willing to participate in networking renewable energy certificate exchanges can submit relevant documents to register at T-REC to facilitate T-REC register institutional information.

    The price of the current renewable energy certification exchange demonstration is set as agreed by both parties (recommended, in principle, at NT$1,000 to NT$2,200 per certificate, at NT$1 to NT$2.2 per 1 kWh electricity).

Note

  (1) Due to the relevant business tax (5%), stamp tax (NT$12/unit, paid by both the buyer and seller), and business income tax (17% of surplus income) incurred from certificate transaction, the taxes shall be paid to tax authorities pursuant to relevant regulations.

  (2) If you have any questions regarding the demonstration plan, please contact Ms. Chia-Hsuan Wu (02-2343-4529, kate.wu@bsmi.gov.tw) or Ms. Peng-Chun Chen (02-3343-2295, janet.chen@bsmi.gov.tw) at T-REC, BSMI.

Download Attachments

No.4, Sec.1, Jinan Rd., Taipei City 100, Taiwan(R.O.C.)
Copyright©2020 National Renewable Energy Certification Center