Taiwan MOEA Launches Incentive Program for Small Hydropower, Up to NT$5 Million

(Central News Agency, reporter Xie Yixuan, Taipei, June 5) The Energy Administration of the Ministry of Economic Affairs (MOEA) stated that it has launched a plan to promote the development of small hydropower to strengthen the layout of renewable energy. The MOEA announced and implemented the 'Small Hydropower Demonstration Incentive Program' on the 3rd, aiming to guide the integration of small hydropower with civic participation. The incentive amount is capped at NT$5 million to accelerate the deployment of small hydropower.

Small hydropower is a type of decentralized renewable energy that is adapted to local conditions. According to Article 3 of the 'Renewable Energy Development Act,' small hydropower refers to a power generation method that utilizes the existing water flow and drop of waterways, irrigation canals, pipelines, or other hydraulic structures used for purposes other than hydropower. It can be installed directly or by constructing a bypass waterway, converting non-pumped-storage hydropower into electrical energy, with an installed capacity of less than 20,000 kilowatts.

The Energy Administration explained in a press release on the 5th that the 'Small Hydropower Demonstration Incentive Program' adopts a dual-track system, with the promotion directions being 'improvement of existing sites' and 'completion of new sites.' Through the demonstration incentive mechanism, it aims to guide the integration of small hydropower into the community environment and local development context, encourage development in conjunction with existing water conservancy facilities, reduce environmental impact, and simultaneously accumulate experience in system operation and implementation to establish a development model with reference value and promotion potential.

The Energy Administration stated that the selection mechanism is centered on 'demonstration orientation and system guidance.' The incentive scoring criteria clearly incorporate key points such as civic participation, environmental friendliness, and composite utilization. This encourages applicants to strengthen local communication, reduce environmental impact, and enhance the diverse use of water conservancy, energy, and public facilities, thereby improving the overall benefits and social acceptance of the project sites.

The Energy Administration explained that the dual-track demonstration incentive mechanism will gradually establish standardized review principles and implementation standards. This will serve as a foundation for subsequent policy refinement and expanded promotion, steadily advancing the application of small hydropower, moving towards the net-zero emissions goal, and injecting new momentum into the national energy transition.

The MOEA emphasized that it hopes the announcement of this program will enhance the diverse effectiveness and feasibility of demonstration sites, and widely invite all sectors to participate in promoting the energy transition, creating a new milestone in the development of green energy. (Editor: Zhang Junmao) 1150605