The supply of indigenous energy resources in Taiwan is limited. 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 energy has attracted the attention of policy makers due to its environment- friendly and self-sufficient nature. Unlike traditional fossil fuels which are exhaustible and nonrenewable, renewable energy resources are sustainable perpetually. However, due to their low energy yield and low reliability, the production costs of renewable technologies are economically disadvantageous when compared with fossil fuels. Nevertheless, trends have been changing since the 1980s when environmental protection issues and policies towards the prevention of global warming were imposed on governmental strategies for economic development.
From TaiPower’s point of view, generation costs consist solely of internal costs such as fuel costs, operating and maintenance costs, and fixed carrying charges. However, from the social point of view, when precisely assessing the costs and benefits of renewable energy generation technologies, we must take into account all of the costs and benefits borne by society as a whole including environmental costs, the public and power industry employees’ health risks, health and safety costs, as well as other social costs and benefits. The thrust of this study is to develop a comprehensive framework for the appraisal of renewable resource technologies in producing electricity. This appraisal shall be carried out through the system planning method, using the Electricity Generation Expansion Analysis System (EGEAS). The results and conclusions of this study are compared with those obtained through the appraisal method currently used by Taipower, and suggestions for its modification are put forward. It is hoped that this research will prove helpful to Taipower and government relevant decision makers.
