Hogan Lovell OffshoreBook 2023 230809 OnlinePDF - Flipbook - Page 264
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not attributable to the project company,
thus it is not liable for delay in performing
its obligation pursuant to the Taiwan Civil
Code. Also, the project company is entitled
to request an extension of the deadline for
up to six months per force majeure event
pursuant to the AC. The AC for the Phase
III-1 Projects also adopts similar provisions
in regard to request for extension of the
applicable deadlines under the AC, except
that the scope of the force majeure event or
excusable event based on which the project
company may apply for an extension of time
are expanded under the AC for the Phase
III-1 Projects to also include (a) extreme weather, (b) a change in law(s) or regulation(s)
which has an impact on the construction
progress, and (c) a delay in completion of
the infrastructure related to the project
concerned thereby having an impact on the
construction progress..
Taiwan
5.4 Onshore grid congestions, prioritisation of renewable energy resources
and compensation mechanisms
Under the Template PPA, Taipower is entitled to reduce the operating load when Taipower needs to perform safety dispatching
or in case of power failure during a task, the
power system experiencing accidents, or the
need for repair and inspection of Taipower’s
and the project company’s equipment. Under the Template PPA, the project company
may not request compensation from Taipower for any consequential reduction in the
sale of electricity as such. Although there is
no exhaustive list of the circumstance entitling Taipower to reduce the operating load,
a reasonable interpretation would be that
Taipower does not have the right to arbitrarily curtail the project on any grounds that are
irrelevant to safety or similar concerns.
Also, the curtailment risk can be mitigated
since Taipower should prioritise the grid
connection and dispatch of renewable
energy according to Articles 8 and 18 of the
EB Act. While these provisions do not specify
the priority among the various types of
renewable energy, they serve as a solid basis
for the project company to mitigate the
curtailment risk.
