New finance for meeting new energy is probably the sentiment of Taiwan’s government. The government is on a lookout for funding plans for a power system, which is not dependent on nuclear reactors.
Prime Minister Lin Chuan’s administration wishes to increase the share of renewable energy inclusive of the wind, solar, and water from the present 5% to 20% of total power output by 2025. It is reported that the Taiwan government is hoping to attract NT$1.8 trillion ($59 billion) of private capital. According to Bloomberg New Energy Finance, a research organization, Taiwan may stand to raise the share of renewable energy in electricity generation up to 9.5% by 2025.
Components in the Targets for 20251.
1. In the context of electricity production, lower thermal coal’s share from 45% to 30%.
2. Eliminate nuclear power (14% currently.)
3. Raise the share of natural gas from 32% to 50%.
Lin Chih-chi, Director General of the department of planning at Financial Supervisory Commission said that Taiwan’s green finance was still at an early stage and there would be more business opportunities ahead.
1. Phoebe Li, Vice President of Chinatrust Commercial Bank in Taipei said that the potential of green finance depended on government promotion and added that local banks lacked experience in financing green energy.
2. Daniel Teng, Chief Executive Officer of Corporate Banking at Cathay United Bank said that there was a steady growth in green loans and added that the valuation for wind deals was fairly difficult.
3. More competition currently on pricing in green finance deals.
Meanwhile, Taiwan is making more grounds on green bonds (a security also being endorsed by Apple Inc.) after floating the rules for them in April. The first batch of green bonds has reportedly been sold out.