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Abstract:Under the concept of environment sustainable management, developing renewable energy becomes the important task of our energy policy. In 2002, the Ministry of Economic Affairs issued “The Renewable Energy Development Scheme”, and expected to increase the share of renewable energy in the total energy supply to above 3%（or 4.5% if including traditional hydro）by 2020. Under the scheme the target for the renewable share in the total generation capacity of Taiwan will be more than 10%. In order to achieve the above target, the government initiated to enact The Electricity Act and The Renewable Development Act. The Article 7 of The Electricity Act sets the fuel diversity obligation and requires all integrated utilities and generators to fulfill such obligation either by building renewable generation units or by purchasing renewable energy from others or by paying fees that will contribute for an electricity fund. The Renewable Development Act also requires the non-renewable energy generators to contribute for a renewable fund based on their power generated. Both funds are established to promote renewable energy development. However, the fee collection standards and methods are different, though their applications may be overlapping. The purpose of this study is therefore to analyze the establishment and operation of both funds prescribed by the two Acts and to coordinate them into consistency if disputes arise between the two Acts. Finally, based on the results of the study suggestions and recommendations will be made to lawmakers regarding the revisions of the policy and related articles and clauses of the Acts concerning the two funds.