Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 263
Offshore Wind Worldwide 2023
5. GRID AND
GRID CONNECTION
5.1 Planning and constructing
the grid connection
According to Article 46 of the EB Act, the power transmission and distribution enterprise
shall plan, build, and maintain the power
grids across the country. Also, pursuant to
Article 31 of the EB Act, the power transmission and distribution enterprise shall inspect
and maintain its facilities regularly. As the
sole state-owned transmission/distribution
system operator in Taiwan, Taipower has the
responsibility to plan and construct the grid.
On the other hand, pursuant to Article 8 of
the RED Act, the developer who installs the
renewable energy power generation facility
is responsible for constructing and maintaining the circuits connecting its facility to the
grid.
5.2 Responsibility for the costs
of the grid connection system
Although it is Taipower that bears the obligation to maintain the grid, under Article 8 of
the RED Act and Section 9.3 of the Template
PPA, Taipower may require the renewable
energy developers to share a portion of the
costs of grid enhancement associated with
the synchronisation of renewable energy
facility. The allocation of the grid enhancement cost is subject to the MOEA’s approval
and may be, if necessary, reviewed by the
MOEA’s review committee composed of relevant experts. Based on the announcement
issued by Taipower dated March 5, 2020,
the MOEA has approved the grid enhancement cost for Phase II of the Program (to
263
be connected to grid during 2020 to 2025)
at NT$5.983 million per MW of the installed
capacity, which amount is included in the FiT
calculation formula. Furthermore, Taipower announced on March 10, 2023, the grid
enhancement cost approved by the MOEA
for Phase III-1 of the Program (to be connected to grid during 2026 to 2031), which is set
at NT$7.902 million per MW of the installed
capacity. In respect of the payment terms,
50% of the total grid enhancement costs
shall be paid within 30 calendar days from
the issuance of the Construction Permit,
with the remainder amount to be paid
within 30 calendar days from the issuance
of the Electricity Business Licence. Note that
Taipower may further adjust the grid enhancement work items and costs and propose
amendments to sharing of costs based on
the costs sharing mechanism approved by
the MOEA.
With respect to constructing and maintaining the circuits connecting the developer’s
facility to the grid, the renewable energy
developer shall bear the costs incurred.
5.3 Consequences of delays
and disruptions of
the grid connection system
As explained above, under the current rules
of Phase II of the Program, the OWF projects which are awarded grid capacity in the
selection and bidding processes in Phase
II of the Program have the obligation to complete construction and start commercial
operation by the date specified in the AC. In
the event of grid connection delay caused
by Taipower, the project company may
argue that the delay is caused by an event
