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2009/SOM2/MAG/WKSP/009 Session 2

Current Initiatives and Future Strategy on Green Energy Development in Chinese Taipei

Submitted by: Industrial Technology Research Institute (ITRI)

Workshop on Environmental Goods and Services

Singapore28 July 2009

0

Robert Yie-Zu Hu, Ph.D.Deputy General Director

Energy and Environment Research Laboratories, ITRI

July 28 2009

Current Initiatives and Future Strategyon Green Energy Development

in Chinese Taipei

2009 MAG EGS Workshop2009 MAG EGS Workshop

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ContentsContents

1. Our Challenges

2. Green Energy Technology & Industry DevelopmentA. Renewable Energy – PV B. Energy Conservation – LED LightingC. Energy Conservation – System Smart NetworkingD. Carbon Capture & Storage

3. Closing Remarks

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1. Our Challenges1. Our Challenges

3Total: 229.8 billion kWhTotal: 117.7 million kLOE

Final energy consumption, 2008

Energy Situation in CTEnergy Situation in CTIn 2008, more than 99% of energy was imported in which equaled to about 1% of global consumption.In 2008, the sector of Industry shared 60.7% of the final energy consumption; Energy consumed 8.1%; Residential and Service sectors consumed 23.2%; Transportation sector,12.8%. In 2008, the sector of Industry consumed 51% of the total electricity production; Energy sector took 8.5%; Residential and Service sectors were about 38.9%.

Total electricity consumption in 2008

Source: Energy statistics, Handbook 2008, Bureau of Energy, MOEA, June 2009

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Energy / Economy / COEnergy / Economy / CO22 ComparisonComparison

Chinese TaipeiGlobal OECD Japan German

2005 Rank %

CO2 Emission (Mton) a 261 22 0.96 27,136 12,910 1,214 813

Population (million) 22.9 45 0.36 6,432 1,172 127.8 82.5

GDP (billion US$) b 572 18 0.93 54,618 30,320 3,474 2,169

Energy Supply (1015 Joule) 4,429 21 0.93 478,715 232,267 22,209 14,433

CO2 Density (kg/US$) b 0.46 47 0.50 0.43 0.35 0.38

Energy Density (US$/109

Joule) 129 114 131 156 150

Source: CO2 Emissions from Fuel Combustion 2007 edition, IEA

Note: a. CO2 from the international sea-lane transportation is not includedb. PPP (purchase power parity) with regard of 2000 US$

Energy productivity has a lot of room for improvement

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Our Challenge Our Challenge –– COCO22 DecouplingDecoupling

GDP growthCO2 emission

Base YearBase Year

Chinese Taipei

1.00

1.50

2.00

2.50

1990 1995 2000 2005

Year

GDP CO2

OECD countries

1.00

1.50

2.00

2.50

1990 1995 2000 2005

Year

GDP CO2

6

2. Green Energy Technology 2. Green Energy Technology & Industry Development& Industry Development

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Notable Energy Developments in CT Notable Energy Developments in CT Consensus agreement reached in the National Energy Conference (April 15-16, 2009) aimed for charting energy policy & future research topics

Aim for a low-carbon societyReduce carbon emission to the level of 2008 during 2016 ~ 2020Reduce carbon emission to the level of 2000 by 2025Reduce the overall energy intensity at least 2% annually for thenext 8 years, and 50% by 2025Increase the supply of low carbon energy to at least 55% of country energy mix by 2025

Stronger administrational effortsAccelerate the deployment of renewable energies and improvement of energy efficiency in the realm of energy supply and demand sectorsImplement “Flagship Program of Green Energy Industry”Initiate the “National Energy R&D Program”

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Target of the Renewable EnergyTarget of the Renewable Energy

YearRenewableenergy

2007 2010 2025

Installed capacity (MW) Percentage

(%)Installed capacity (MW) Percentage

(%)Installed capacity (MW) Percentage

(%)

1. Hydropower 1876 4.09 2168 5.7 2500 4.4

2. Wind power 187.7 0.41 980 2.6 3000 5.3

3. Photovoltaic 2.4 0.01 31 0.1 1000 1.8

4. Geothermal energy － － － － 150 0.3

5. Biomass 116.8 0.25 741 1.9 1400 2.5

6. Fuel Cell － － － － 200 0.4

7. Ocean energy － － － － 200 0.4

Total 2182.9 4.76 3920 10.3 8450 15.1

8. Solar thermal water heating systems 1.66 million m2 2.05 million m2 4.09 million m2

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TargetTarget of of Energy ConservationEnergy Conservation

LOE

/ NT$

100

0

Former achievement20% Future goal

50%

Year

APEC Leadership Meeting initiated an action to improve energy efficiency by 25% between year 2005 and 2030.

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Green Energy Industry ProgramGreen Energy Industry Program

Approved by the Cabinet on April 23, 2009

1 US$ ≈ 33 NT$

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LED Lighting Applications

Refuse Derived Fuels (RDF)

Bio-diesel

Wind Power

FC & H2

Smart Meter

Next Generation Solar Cell

Promote Renewable Promote Renewable EnergyEnergy

Develop Green Energy Develop Green Energy IndustryIndustry

Distributed Energy System (DES)

Advanced Metering Infrastructure (AMI)

Enhance Energy Enhance Energy Conservation Conservation

Major Focus of Green Energy Technology in CTMajor Focus of Green Energy Technology in CT

CCS

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A. Renewable Energy - PV-

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Outlook of BIPVOutlook of BIPV

High Efficiency Solar CellHIT, bifacial solar cell, planar solar concentrator

Multi-function Solar CellHybrid PV/thermoelectric generator module, self-clean surface

Better Electric Power UtilizationSmart grid energy conservation materials (NIR reflector)

Reliability-better Safety Pass IEC61730 or regional safety regulations

AestheticHigh color rendering index silicon TFPV, chromatic DSSC, EC PV

Green BuildingLow cost / multifunction BIPV Solution

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1515--times Growth Industrytimes Growth Industry-- BIPV+EnergyBIPV+Energy Conservation Conservation

Residential buildings consume 30 - 40% of global energy PV and energy conservation industries are the best solution to decrease global warmingNanoMarkets: “The estimated growth rate for BIPV is more than 100% in the 2011 - 2013 period”

Sources: NanoMarkets, Frost & Sullivan, Lux Research and ITRI 2009/April

1.48 1.97 5.29 6.67 8.41 10.6

23.7

52.8

75.5

108

0

20

40

60

80

100

120

2006 2007 2008 2009(e) 2010(e) 2011(e) 2012(e) 2013(e) 2014(e) 2015(e)

市場規模($億元)

BIPV is a large market that may eventually account for ~50% of the total area of installed PV ……B.P. Nelson, NREL

Mar

ket s

ize

(100

milli

on U

S$)

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Development of PV Technology in CTDevelopment of PV Technology in CT

Upstream Midstream Downstream

Polysilicon Ingot / Wafer Solar Cell PV Module PV System

R&D Strategies:Upstream poly-silicon raw materials and purification technologiesModule verification technologyDomestically-made equipments for mass productionDevelop the next generation solar cell

PV production: >2.11 GWp in 2008, (25% share of world PV market) Focus on next (Si, thin film) & next generation (Polymer, DSSC)

Domestic Annual Production (BNT$)

2006 2015 2025

21.9

450

1,000

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Next Generation Solar CellsNext Generation Solar Cells

Organic hybrid solar cellDye-sensitized, organic solar cellFlexible Solar Cell

Organic Solar Cell

Silicon-based thin film solar cellCIGSInk Printing

Thin Film Solar Cell

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B. Energy Conservation - LED Lighting-

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200

150

100

70

300.30.5

1.4

4.7

6.0

0

50

100

150

200

250

2003 2004 ~ 2005 2006 ~ 2007 2008 ~ 2010 2012 ~ 2015Year

Effi

cien

cy (L

m/W

)

0

1

2

3

4

5

6

7

Uni

t pric

e (N

T$/L

m)

Efficiency (Lm/W) Unit price (NT$/Lm)

Technology Trend of White LED LightingTechnology Trend of White LED Lighting

80 Lm/W in 2007

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Current Status of LED Industry in CTCurrent Status of LED Industry in CT

Strong infrastructure. World ranking No.1 in sales volume, No.2 in revenueDeveloped nearly 100 key IPsThe competitiveness of solid state lighting industry will improve greatly by combining the ICT industry’s capabilities of desig and manufacture.

2007

North America12%

Europe9%

Japan45%

Taiwan16%

Korea6%China

12%

20Output value, Benefit

2015

2012

2009

Green Energy Industry Economy

Streetlamp

Large-sized LCD Backlight

Intelligent Human Factor Lighting

High power WLED 150lm/W

High power WLED200lm/W

High power WLED100lm/W

Develop the innovative high quality LED lighting technology

User-friendly and high quality lighting environment

High power AC LED160lm/W

AC LED Intelligent Mood Lighting

High power AC LED120lm/W

2018 Intelligent Human Factor Interactive Lighting

2018 Scenario2018 Scenario

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Systems Key Components

LED lighting sourceSpecific power supplyDigital controller Standardized LED module

Modularized LED lighting systemOptical and thermal designSimulation of LED lighting fixture design LED streetlight High reliability design

LED lighting module15W,1000lm,20khrs

LED power supply,87%, 1cm(T) ,MTBF＞25K Hrs@60℃

200W LED streetlightTemp. rise : 21℃

Key Components and Systems in LED LightingKey Components and Systems in LED Lighting

Thermal simulation

Standardized LED module20W,60lm/W

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Establishment of World Class Lighting LaboratoryEstablishment of World Class Lighting Laboratory

FeaturesThe first non US-based NIST certified testing laboratory Provide a platform of standardizationAn information hubAssist in leveraging the product quality and international collaboration

NIST: National Institute of Standards and Technology

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C. Energy Conservation - System Smart Networking -

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Distributed Energy System of Today & Tomorrow in Chinese Taipei

CT’s Advantages – A test bed & pilot demonstration from micro grids to future intelligent networkCT has strong history of DE penetration - 17% (world average, 7%) Opportunities for Micro Grid demonstration (hundred kW to a couple of MW)

Sources: BOE, Chinese Taipei; WADE

Development of Distributed Energy SystemDevelopment of Distributed Energy System

1986 (16,793 MW) 2006 (45,091 MW) 2025 (78,000 MW)

CHP, 1.1% CHP, 17.1%Utility Plant,

82.7%

Wind, 0.11% CHP, 17.%Renewable Energy, 8%

Utility Plant, 75%

Utility Plant, 98.9%

25Source: European Smart Grids Technology Platform (EU,2006)

Distributed Energy Technology, An OverviewDistributed Energy Technology, An Overview

Central power plants

Offices

Storages

Houses

Micro-turbines

CHP

Fuel cells

Industrial plants Wind turbines

The full potential of DE can be realized by integrating generation, transmission & distribution and energy storage in a seamless, intelligent network

Technology Scope:Renewable EnergyAdvanced Power ElectronicsEfficient Energy StorageSmart Grid

Technology Scope:Renewable EnergyAdvanced Power ElectronicsEfficient Energy StorageSmart Grid

Micro Grid

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Security network

Future Intelligent Network (FIN)Future Intelligent Network (FIN)

PowerInfrastructure

Energy Network +

Intelligence Infrastructure

+Security network

+Transportation

network

Generation Transmission Distribution LoadSystem

Management

Distributed Energy Resources (DERs)Advanced Metering Infrastructure (AMI)

Information & Communication

Technology

EVICE MRT

Energy Storage System

LEV

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Technology Integration for C&R SectorsTechnology Integration for C&R SectorsFeatures

Efficient equipments equipped with inverter controllersFull dimension system integration of efficiency, comfort and health careBack up ESCO industry to implement efficient equipments & systemsCombination of energy conservation industries – HVAC&R, LED and EICT

Energy savingEnvironment friendlyHealth careComfort

Energy savingEnvironment friendlyHealth careComfort

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The Low Carbon ResidenceThe Low Carbon Residence

Utilize highly efficient energy technology to build a low carbonresidenceUse local resources, e.g. renewable energy, heat recycleEncourage voluntary energy conservation and carbon reduction living standards

~Intelligent infrastructure ~ Indirect day lighting

Solar tracker

Power plant

Network control Energy conservationmanagement system

Day lighting

Transformer Wind power

Controller

Photovoltaics

Light sensor智慧電動窗簾

Intelligent washing machine & dehumidifier

Intelligent electrical

Light ductIntelligent air conditioning

High efficiencyillumination

Intelligentfridge

Battery set

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EICT for ESCOEICT for ESCO

Combine network communication and artificial intelligence technologies to manage electricity effectivelySave more than 10% of the electricity bill, and the investment pay-back time is about 2 - 3 yearsThe domestic convenient stores have been continually introduced the system and it will speed up the promotion furthermore

Energy Management SystemHardware

Monitoring & Control SystemDistance Monitoring System

SoftwareEnergy Management PlatformReal-time Demand Management

Convenient stores

The monitor system

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D. Carbon Capture & StorageD. Carbon Capture & Storage

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Outlook of CCS (This Version)Outlook of CCS (This Version)

Source: Energy Technology Perspective 2008, IEA, p.64

CCS contributes to CO2 reduction ~ 19%9% from industry and transformation and 10% from power generation

Contribution of emission reduction options, 2005-2050

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CTCT’’s Opportunitiess Opportunities

Ref: CO2 Storage Prospectively of Selected Sedimentary Basins in the Region of China and South East Asia, APEC Energy Working Group EWG Project , June 2003

CCS is a long-term solution for Chinese Taipei to meet the more rigid CO2 emission reduction target

The huge foreland basin in west Taiwan provides opportunities for the implementation of CO2

storage.

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CTCT’’s Roadmap and Strategiess Roadmap and Strategies

20121 ~ 3 MW post-combustion CO2 capture pilot plantSmall-scale CGS pilot test site (1~10 kton CO2/yr)

2020Commercial scale CCS design & layoutLarge-scale CGS pilot test site (100 ~ 1,000 kton CO2/yr)

201610 ~ 30 MW post-combustion CO2 capture demo plantMedium-scale CGS pilot test site (10 ~ 100 kton CO2/yr)

Strategy 1: Focus on large CO2 emitters1st priority: coal fired power plants ~ 58.7% of total CO2 emission in 20062nd priority: petroleum & steel Industries ~ 20% of total CO2 emission in 2006

Strategy 2: Stepwise approach 2025

Commercial operation of CCS

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3. Closing Remarks3. Closing Remarks

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Chinese Taipei takes its advantages of IT industry, legislation and administrational efforts to support R&D activities and the development of green energy industry, aiming to pursue sustainable development

In 2009, Chinese Taipei passed the Amendment of Energy Management Law and launched the Renewable Energy Development Act, which will more effectively electrify the development of green energy industry and low carbon society

In order to develop the green energy industry, Chinese Taipei strategically focuses on PV, LED, system smart networking and innovative researches in every kind. In addition, we are sincerely willing to cooperate with international community to further bolster green energy technology

Closing RemarksClosing Remarks

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Thank You Thank You For Your Attention For Your Attention