Abstract

Due to the increasingly severe impact of extreme weather conditions caused by the climate change, countries around the world have taken measures to reduce greenhouse gas emissions, with the use of renewable energy being one of the primary pathways. Feed-in tariff (FIT) and renewable portfolio standard (RPS) policies along with the regulation of renewable energy certificates (RECs) are common policies promoting the development of renewables. Taiwan has implemented FIT since 2010 and introduced a domestic REC scheme (T-RECs) to liberalize the renewables electricity market in 2017. In the study, system dynamics is conducted to investigate renewable energy development and gain a better understanding of the renewable energy growth in its capacity in Taiwan. Through the analysis, we summarize the key factors influencing the installed capacity including FIT decline rates, initial T-REC pricing and the policy strength. The challenges caused by these key factors for the development of renewables are discussed.