Taiwan’s small and medium-sized enterprises (SMEs) are struggling to compete for renewable electricity, but recent developments invite promising solutions, according to the Chung-Hua Institution for Economic Research (CIER).
SMEs are shut out of power-purchase agreements (PPAs) — a major procurement method — due to low electricity consumption. Meanwhile, energy developers are struggling to find companies that are willing and able to buy large energy loads. However, an aggregated PPA (APPA), as posed by CIER’s recent report, Taiwan Energy Market Briefing: Net-Zero Plan and Aggregated PPAs, could be the key to both barriers. An APPA consists of two or more companies accumulating their electricity usage, which lowers the price, to negotiate a contract with energy developers.
Although SMEs require smaller energy loads than larger companies, they are facing more challenges in sourcing renewable energy in Taiwan. APPAs and pledges to assist SMEs are importan