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Taiwan's solar PV installations could hit 20GW by 2025

6.5GW of total solar PV capacity is eyed by end-2020.

Taiwan could ramp up its solar PV deployment exceeding 2GW annually in the coming years to march towards the goal of 20GW in 2025, according to GlobalData. The country installed 1.6GW of new solar PV capacity to end 2019 at cumulative solar PV generation capacity of 4.3GW.

Taiwan is estimated to add a record 2.25GW of new solar PV deployment in 2020. It has a solar plan for 2019-2020 that is expected to bring in $7.5b of investments into the sector and boost total capacity to 6.5GW by end-2020.

To support these ambitious goals and attract developers and investors, Taiwan is encouraging feed-in-tariff (FIT) policy and tariff rates. “Though the government recently revised FITs with a minor cut for solar which are applicable from the start of 2020, rates are still attractive to drive the downstream PV market. The revised FITs for solar PV are 13-19 cents (NT$3.9408-5.7788) per KWh,” GlobalData said.

“Taiwanese regulations restrict solar developers from buying modules made in China to protect local manufacturers. Moreover, local modules that have voluntary product certification (VPC) provides developers 6% bonus to their FITs,” noted Tarun Bhutani, project manager at GlobalData.

The VPC is awarded to locally-made high-efficiency cells and modules through a testing regime. This incentive not only protects local module suppliers but boosts indigenous cell and module manufacturing.

Bhutani added, “Module overcapacity in China has continued to put pressure on PV pricing worldwide over the last few years. Taiwanese cell manufacturers had re-structured their businesses in the past by turning into module manufacturers to sustain with China’s pricing war.

“The industry is currently further diversifying and moving more downstream by re-modelling their business offerings on the project development and EPC work. Solar PV deployment drive is also helping this move firmly.” 

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