What Role Should "Local Governments" Pricing

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Ahad
Posts: 7
Joined: Mon Jul 04, 2022 5:37 am

What Role Should "Local Governments" Pricing

Post by Ahad »

In December 2018, four developers including Woxu Energy, Copenhagen Infrastructure Partners (CIP), Singapore’s Northland and Canada’s Yushan Energy, and Sinosteel tried to sign a power purchase and sale contract with Taipower within the time limit. Purchase Agreement, PPA), in order to apply the offshore wind power wholesale purchase rate of 5.8 yuan per unit of electricity in that year. However, due to the failure to obtain the approval letter for the review of the preparatory license issued by the local government before January 2, 2019, the approval letter cannot be immediately submitted to the Energy Bureau of the Ministry of Economic Affairs for review together with other documents, so the higher limit in 2018 is not applicable. purchase price. At that time, it was during the local election. After various considerations such as politics, investment risks, policy swings, and wholesale purchase rates, offshore wind power developer Woxu Energy finally announced that it would temporarily suspend the execution of the Taiwan supply chain. The final decision to invest in Taiwan was announced after a quarter, causing an uproar in the society. According to a report by the Central News Agency,

the local government believed that the developer's response to the review comments was too brief, so they asked the developer to explain again, the reason for not issuing a review consent letter. From the Regulations on Electricity Registration and the Plan for Setting Up Offshore Wind Power Plants in the First Phase, it can be seen that the local government has two main roles in the preparation and creation of offshore wind power generation: developers send out design drawings. , used to apply for a letter of consent from the local competent authority; and after the developer obtains the preparatory permit, the local government needs to verify and transfer the relevant documents to the competent authority so that the developer can apply for the construction permit. In terms of administrative procedures, this is a mechanism for the local government to check, Pricing
but in fact, the check and the check are only a thin line, and it can easily be used as a bargaining chip between the central and local governments, local governments and developers. It has become a political risk that is difficult to grasp and grasp. Offshore wind power policy is a very important part of Taiwan's energy transformation process. Among them, energy transformation is considered to be an important opportunity for social transformation. It can not only challenge or reverse the original energy governance model, but also promote public participation, interaction and transformation. In terms of communication, it can stimulate many innovative thinking and practices. In the energy transition process, the importance of the role of local governments is the focus of many civil society initiatives, and is even considered a key factor in the success of the energy transition.

In 2018, the " 2017-2018 Local, County and Municipal Government Energy Policy Evaluation Summary Report " released by the Energy Transition Promotion Alliance mentioned that local county and municipal governments have made progress in promoting renewable energy, but there is still a lack of participation by more citizens Therefore, it is necessary to incorporate the civil society power platform and formulate clear vision indicators. At the same time, it calls on the central government to provide regular resources and guidance to find a governance model that adapts to local conditions. In addition, Greenpeace also mentioned in the " City's Own Green Six Capital Renewable Energy Governance Evaluation " report that the leadership of the city chief, the continuity of the policy, and ensuring the mechanism of citizen participation are the keys to the long-term continuity and implementation of the policy. In the energy transition white paper, the comprehensive promotion of local energy governance is regarded as an important part of energy transition, and it also emphasizes that local governments should gradually transform from business executors to collaborators in promoting energy policies, and even active actors.
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