SEMI Energy Collaborative Releases Recommendations for Expanding Low Carbon Energy in Taiwan

Estimated reading time: 2 minutes

SEMI, the global industry association representing the semiconductor and electronics design and manufacturing supply chain, released a report by its Energy Collaborative (EC) with recommendations on expanding low-carbon energy (LCE) availability in Taiwan. The report explores existing Taiwan energy policies and offers solutions to address the market’s unique LCE procurement challenges. The EC report series on LCE availability includes recommendations for Japan and South Korea.

According to the Semiconductor Climate Consortium (SCC), substantially scaling LCE investment and installation offers the most effective path for the industry to address customer expectations and pursue decarbonization targets. EC analysis suggests that more diverse procurement mechanisms and a higher level of cost-competitive LCE supply is required to prevent Taiwan’s corporate energy users from falling 30 to 50 percent short of their voluntary 2030 LCE adoption targets.

The EC has identified four key areas of LCE policy-related actions for Taiwan. Each recommendation is supported by detailed analysis of current and historical market conditions. In summary, the EC recommends:

• Expanding procurement options by introducing mechanisms such as green tariffs and unbundled renewable energy certificates
• Adjusting offshore wind localization requirements and, for offshore wind auctions, finding a balance with selection criteria such as cost, delivery timelines, and execution capabilities
• De-risking power purchase agreements (PPAs) by redefining sell-back mechanisms for surplus electricity, especially for offshore wind
  - Evaluating effectiveness of offshore wind credit risk guarantees and consider extending the guarantee period
• Alleviating land and community negotiation risks by enhancing the government’s role in land condition validation and creating guidelines on community benefit sharing.

“The EC welcomes recent energy policy developments in Taiwan that have gone into effect following our engagement meetings,” said Mousumi Bhat, VP of Sustainability at SEMI. “We are encouraged by the revised auction rules designed to improve cost competitiveness and timely delivery. The EC and our members look forward to further engagement with developers, financiers and government agencies in support of this critical market for our industry.”

Other regional LCE policies reviewed in phase one of the SEMI Energy Collaborative Initiative include South Korea, Japan, Singapore and Malaysia, all key regions for semiconductor industry manufacturing. Each report leverages this comprehensive analysis and includes benchmarking information on how other regions have successfully implemented similar measures to drive LCE adoption.

The Energy Collaborative report Key Challenges and Potential Solutions for Expansion and Procurement of Low-Carbon Electricity on Taiwan is the third of five, joining the reports on South Korea and Japan. Organizations sponsoring the EC will get access to much more detailed analysis of each region.