Taiwan government backs down on solar tariff cuts

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The Taiwanese government has backed down from making a proposed 14.23% cut in wholesale tariffs to solar power producers, instead cutting tariff levels by only 12.45%.

The new prices will be in effect from January to June next year and be reviewed on a half-yearly basis. According to local newspaper Taipei Times, the adjustment was made in response to consultations held last month with Taiwanese firms, after the government’s Bureau of Energy announced proposed changes in advance.

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Solar power producers in Taiwan are thought to have complained of rising maintenance costs and pricing competition in hearings with the bureau. At the recent PV Taiwan show, the domestic PV industry made a call for more government support. An announcement on the Bureau of Energy website indicated that the Taiwanese government took into account average operating costs across the global market when proposing changes.

The government had announced that over the first six months of next year, prices paid to solar electricity wholesalers would be dropped by 12% to 14% compared to the last six months of this year; following that the second half of 2014 would have seen further cuts of 2% to 3%. This would have meant prices dropping from NT$5.62 (US$0.19) per MWh to NT$4.72 (US$0.16) per MWh at the beginning of next year. Instead it will drop to NT$4.92 (US$0.17) per MWh, then remaining at that level for the rest of the year.

The bureau also announced that changes would be made to wholesale prices on other forms of energy generation – it will send out announcements on Monday.

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