New laws cast shadow over Taiwan’s solar power industry

新法讓台灣太陽能光電產業蒙上陰影

TAIPEI (Taiwan News) — Legislation passed by the Kuomintang and Taiwan People’s Party on Nov. 14 has significantly tightened environmental impact assessment requirements for solar power projects, prompting contractors to warn that investment has nearly come to a standstill.

The new EIA process — in which a single meeting can involve eight ministries — is also deterring new investment. Industry players have begun shifting their focus to developing solar farms in Southeast Asian countries such as the Philippines, per Liberty Times.

Economics Minister Kung Ming-hsin (龔明鑫) told lawmakers Friday that the ministry will evaluate the impact of the amendments. A Ministry of Economic Affairs official also acknowledged receiving an unusually high number of complaints and petitions from affected companies.

Under the new rules, solar projects on slopes or floating solar farms must undergo an EIA if they exceed 5 hectares in area or 10,000 kilowatts in capacity. Projects with a cumulative capacity of more than 40,000 kW, an area of more than 40 hectares, or those located on state-owned land must also undergo review.

Operators described the changes as a near-complete chokehold on ground-mounted solar development. They said coordinating EIA reviews across eight ministries will be extremely challenging, noting it was already difficult to convene even a single interagency meeting in the past.

One operator said bluntly that large- and small-scale energy projects — whether nuclear, fossil fuel, solar, or energy storage — will now face comparable levels of resistance once proposed at any given location.

Kung expressed regret over the law during a recent legislative committee session, saying the MOEA was willing to negotiate using the KMT’s proposal as a basis, but the TPP version ultimately passed. He pledged to evaluate the legislation and propose revisions within one month.

He added that while the law falls under the jurisdiction of the Ministry of Environment, the MOEA may file an appeal because the new requirements could hinder Taiwan’s green energy development targets and undermine efforts to meet soaring demand for renewable power from the semiconductor and technology sectors.