The latest CCPI (Climate Change Performance Index) results were announced on November 20, 2024, with the top 3 positions left vacant and Taiwan ranking 60th overall. The climate mitigation performance is assessed in four categories: GHG Emissions, Renewable Energy, Energy Use and Climate Policy. Taiwan’s ranking of 62nd, 43rd, 59th, and 39th respectively in these categories suggests that it is relatively behind in "GHG Emissions" and "Energy Use". Among the top ten GHG emitters in Taiwan in 2023, seven were power plants, of which six are owned by Taipower. In terms of “Energy Use”, Taipower's generation mix from January to September 2024 consisted of natural gas (41.7%), coal (40.2%), renewable energy (10.5%), nuclear power (5.1%), and pumped storage and oil (2.5%). Carbon-emitting power sources such as natural gas and coal accounted for 81.9% of the total. Consequently, in addition to policy formulation, the adjustment of the demand pull (energy consumption) is going to be an important structural driver of green energy supply. In this context, the 24/7 Carbon Free Energy Compact (24/7 CFE) might be one path to achieving it. 

Table 1: Top Ten Carbon Emitters in Taiwan in 2023

24/7 Carbon-free Energy (CFE) Compact

24/7 CFE was proposed by UN-Energy in 2021 as the concept of carbon-free electricity consumption 24 hours a day, 7 days a week and aims to serve as an important indicator and tool to help businesses achieve 24/7 carbon neutrality and drive the complete decarbonization of power grids. Whilst mechanisms such as Renewable Energy Certificates (RECs) or Power Purchase Agreements (PPAs) have prompted investment in renewable energy infrastructure, they do not guarantee the real-time matching between renewable energy consumption and production. For example, Google's 24/7 power usage as disclosed in its 2023 Environment Report (Figure 1) highlights the ongoing timing mismatch between the demand and supply of green energy. 

Figure 1: Google’s 24/7 Energy Consumption at an Example Data Center 

A feasible strategy to promote 24/7 CFE in Taiwan

Whilst the use of multiple energy sources under the 24/7 CFE framework provides Taiwan with an important opportunity to achieve sustainable development and energy transformation, there will be a series of challenges in its adoption. First, the hourly power calculation required by 24/7 CFE represents one major difficulty. Corporate users must use time-stamped green energy certificates, which do not yet exist in Taiwan. Despite efforts from Taipower to promote smart meters, the grid operating technologies and infrastructure for monitoring power generation by the hour are still lacking. 

To promote 24/7 CFE, Taiwan can adopt the following strategies:

1. Develop energy storage technologies:

For example, to ensure a stable power supply, investment in large-scale battery storage systems will be required to balance the intermittent supply of renewable energy. The construction of pumped storage power stations that utilize existing hydro generation facilities and operate according to energy demand schedules can prolong the consumption of renewable energy.

2. Promote the development of new nuclear energy: 

Given their advantages of low construction costs and high flexibility, the moderate introduction and development of small modular reactor (SMR) technology will help to provide baseload power. Meanwhile, any necessary upgrades and modernization of existing nuclear power facilities may also be considered, in order to improve their efficiency and safety. 

3. Strengthen smart grid infrastructure: 

For example, the deployment of smart grid technologies to enhance the flexibility and demand response capabilities of the power system can empower real-time monitoring and management. The drive for distributed energy systems allows more small-scale renewable energy generation facilities to be connected to the grid, creating a diversity of energy hubs. 

4. Establish policies and economic incentives:

Subsidies and tax incentives may be offered to renewable energy producers and storage technologies. Meanwhile, the establishment and strengthening of the corporate power purchase agreement (CPPA) market can foster the hourly-based CPPA mechanism. Companies should be encouraged to sign CPPAs. 

5. Enhance international cooperation:

Lessons can be learned from the early adopters via more collaboration and exchanges with other countries in the deployment, measurement and trading technologies for 24/7 CFE. Meanwhile, the feasibility of cross-border power transactions with neighboring countries should be explored, so as to make good use of all the renewable energy resources within the geographical region.