The supply of indigenous energy resources is limited in Taiwan. Most energy resources for domestic consumption are imported. Since the onset of 1973’s oil crisis, in order to maintain sustainable economic growth, the Taiwan government has started to diversify the energy supply structure. Among various energy resources, renewable resources have drawn policymakers’ attention due to their environment-friendly nature and self-sufficient characteristics. Unlike traditional fossil fuels which are exhaustible and nonrenewable, renewable resources are endlessly sustainable. However, due to their low energy intensity and low net amount of useful energy produced, the production cost of renewable technologies are economically disadvantageous compared with fossil fuels. Nevertheless, this trend has been changing since the 1980s when the issues of environmental protection and the prevention of global warming were imposed on governmental strategies for economic development.
The thrust of the study is to develop a comprehensive framework for the appraisal of renewable resource technologies in producing electricity. This was carried out by a cost-benefit analysis for each power generating alternative. The appraisal approach entails: (1) the Taipower current evaluation method for renewable technologies, and (2) the alternative unit method. One is from the Taipower viewpoint, i.e., to consider various costs and benefits on a private basis. The other is from the societal viewpoint, i.e., to consider all costs and benefits borne by society as a whole, including environmental costs, public and power industry employees’ risk, health and safety costs, and other social costs and benefits. The results of this study are expected to be helpful to TaiPower decisionmakers in the relevant fields.
