Illegal Wind Turbine Fraud Case 01""Alien Base" Invades Taiwan's Largest Aquaculture Zone, Swallows Investments and Leaves Investors Stranded, Changhua County Government Actually Helps Legalize It

Fangyuan in Changhua is an important aquaculture hub in Taiwan, and on a 10-hectare plot of land in the Wanggong aquaculture zone, a wind power plant made up of 432 metal vertical-axis wind turbines has actually sprung up. Because of its unusual appearance, it was nicknamed the "Alien Base" and became a popular spot for influencers to check in and take selfies. However, this is a super-large illegal structure built without a legal application, not only a pain in the hearts of local aquaculture farmers, but also a green energy fraud case.

The operator illegally built wind turbines on aquaculture land in an agricultural zone, and afterward obtained consent and registration from the Bureau of Energy for green energy development. Absurdly, fishermen had already reported it when the wind turbines were being built, yet the Changhua County Government not only failed to order a halt to construction and restoration of the original state, but instead tolerated the operator's completion of the project and began helping the operator legalize it on the spot.

Holding government approval documents, the operator recruited investment under the name of "Wind Profit Coin" for each wind turbine at prices ranging from several hundred thousand, and after successfully raising funds, sold the site and equipment to another company. The person in charge absconded with the money, and the new company taking over refused to recognize anything from the past. Investors had nowhere to complain. Faced with the construction of wind turbines on aquaculture land ultimately turning into a scam, Lin Jimin, chairman of the Changhua Aquaculture Association, believes the government should give fishermen an explanation and should be able to dismantle the wind turbines so the aquaculture zone can return to aquaculture use.

Illegal wind turbines exploit legal loopholes, 10-hectare plot cut into 72 parcels to obtain high profits

The site of this illegal wind turbine case was originally a 10-hectare aquaculture plot. The operator divided it into 72 small parcels of land, each about a little more than one fen (1,250 sq m). The land was subdivided to exploit legal loopholes and obtain improper profits from wind turbine investment.

The Regulations on Non-Urban Land Use Control allow a certain amount of space on agricultural, fishery and pastoral land for building facilities, such as utility poles, high-voltage towers or pumping stations, including renewable energy facilities, with an upper limit of 660 sq m per parcel number. According to law, a 10-hectare plot of land can only be used to build one 660 sq m facility, so the operator divided the land into 72 small parcels, each allowing a 660 sq m facility to be built.

Next, the operator installed "6" small wind turbines on each parcel, with a total generating capacity of 18 KW, deliberately kept "below the 20 KW threshold," which is also full of profit tricks. To encourage nationwide participation in power generation, the 2017 renewable energy feed-in tariff was NT$8.97 per kWh for the below-20 KW threshold, while above 20 KW it was only NT$2.8 per kWh. In short, the operator "disguised" itself as 72 small-scale private power generators to seek power generation profits nearly three times higher than those of large power producers.

Although dividing the land is the operator's right, under the green energy development model of "allowing use of 660 sq m," the operator still should have applied to the local government, yet started construction without applying. When the operator acted secretly, it was reported by local fishermen for illegal construction, and the illegal development was exposed for the first time.

Aquaculture Development Association: The largest and best aquaculture zone in the country, can it be exploited piece by piece like this?

This wind power plant, called a "whisk" by locals, is surrounded by an aquaculture zone stretching as far as 300 hectares. This 10-hectare aquaculture plot changed hands and ended up with the operator. In August 2017, the operator illegally began building wind turbines. Nearby fishermen questioned why a power plant could be built in an aquaculture zone and immediately reported it to the Changhua County Aquaculture Fisheries Development Association, which then sent a document to the county government to report it.

After the aquaculture association reported it, the county government only fined the operator in October 2017, but did not order a halt to construction, allowing the operator to build all the way to the end. It was not until May 2018 that the county government issued a second fine, but all 432 small wind turbines had already been completed. Lin Jimin was furious at the county government's muddled attitude:
"During the construction stage, we sent documents to the county government very early. Unexpectedly, the county government did not actively manage it. It should have all been dismantled and handled anew according to procedures, but now they want to legalize it on the spot. Outrageous, isn't it?"

Association chairman Lin Jimin, once elected as one of the 2005 Ten Outstanding Fishermen, has long paid attention to environmental issues along the western coast. Lin believes that the Wanggong aquaculture zone, together with the Fubao aquaculture zone to the north and the Yongxing aquaculture zone to the south, are connected over nearly 1,300 hectares to form the largest aquaculture settlement in the country, and should not be easily destroyed.

"Aquaculture zones give priority to aquaculture operations and should bring into play the advantages of specialization and scale. The government has provided a fishery-solar symbiosis project, and we do not oppose it, but it must still follow legal procedures and must still be used for aquaculture. But this case has filled aquaculture land with wind turbines, and this land can no longer be used for aquaculture." Lin Jimin was greatly puzzled and harshly criticized the government and the operator for fooling around with the law.

Using green energy policy as rhetoric, a green energy scam carefully laid out by businessmen

In addition to destroying aquaculture land with illegal wind turbines, the operator also used green energy to carry out malicious fraud, externally recruiting investment everywhere under the name of "Wind Profit Coin" for each wind turbine at prices ranging from several hundred thousand, and after successfully raising funds, transferred the site and equipment to another company, with the person in charge absconding with the money.

Ting was one of the investors in this green energy scam. Because she knew a relative of the company's person in charge, she took out her savings to invest. She told reporters that the developer at the time, Rich Star Group, used the "Type 3 Wind and Solar Power Generation System Purchase and Sale Contract" signed with Taipower to explain that Taipower would purchase electricity for 20 years, with a feed-in tariff of nearly nine dollars per kWh, guaranteeing a pie of stable future returns to win over investors.

According to the content of the "WGGT Wind Profit Coin White Paper" provided by Ting, Rich Star Group converted the expected returns from developing each wind farm into company revenue. Investors converted the actual investment amount into purchases of "Wind Profit Coin," and it was claimed that each period's company revenue would be deposited into investors' online accounts.

In addition to showing Taipower's 20-year power purchase contract, Rich Star Group also took clients to the site to see the actual power plant. Ting recalled, "In 2017 I saw 432 small wind turbines, and only after seeing it with my own eyes was I willing to take out money to invest." After being persuaded by a friend, she took out her savings to invest. But the truth was that Rich Star Group did not actually put the plant into operation, but instead resold the entire plant and equipment to another operator, and the person in charge ran away with all the funds.

"One day the entire website and accounts disappeared, and I did not even know where my money went." Only then did Ting realize she had been scammed. Ting did not know exactly how many investors were deceived and harmed, but her friend mortgaged a house for this investment case. Not only did the dream of getting rich through green energy become a bubble, the house was also auctioned off by the court.

Ting could not understand why Rich Star Group obtained registration from the Bureau of Energy, signed a contract with Taipower, and successfully completed the construction of the 10-hectare wind turbine farm, yet not only could it not operate and sell electricity, but green energy actually turned into a scam?

Changhua County Government tolerates operator boarding first and paying later

Since the Changhua County Government received the report in August 2017, it not only failed to order the operator to halt construction, but instead sat by while the project continued until May 2018. Only after all 432 wind turbines were installed did it symbolically issue a second fine of NT$80,000 and, under the pretext of entering project counseling for legalization, fail to order demolition. From illegal construction of wind turbines to a green energy scam, what role did the government play?

In this case, the relevant administrative units include the Agriculture Department in charge of agriculture and fisheries, the Land Administration Department controlling land use, the Construction Department supervising construction and development, and the most critical local competent authority for the green energy industry, the Economic and Green Energy Development Department, as well as the central green energy competent authority, the Bureau of Energy. Why did they let the operator violate the law all the way?

Economic and Green Energy Development Department: The central Bureau of Energy has already agreed to registration, and the county government has a responsibility to help legalize it

Section Chief Zhang of the Green Energy Section of the Economic and Green Energy Development Department said that after the fine in October 2017, the operator obtained approval and registration from the Bureau of Energy of the central Ministry of Economic Affairs in December 2017, and submitted its first development application to the county government in January 2018. Because the operator obtained approval and registration from the Bureau of Energy, the county government has a responsibility to help the operator legalize it.

"At first, the operator wanted to apply using the allowed use of 72 parcels within 10 hectares, each 660 sq m, but after the county government conducted a review, it required the operator to redo an overall district rezoning before development," Section Chief Zhang explained.

But absurdly, the operator had already been reported by fishermen's groups in August 2017, and the county government fined it in October, yet not only did it fail to order a halt to construction and restoration of the land to its original state, it instead let the operator calmly obtain "consent registration" from the Bureau of Energy in December, obtain a Taipower contract, and submit a development case to the county government in January 2018, while the wind farm was completed in May.

In short, the operator violated the law first, yet the county government tolerated the operator's construction for as long as half a year, until the wind farm was completed in May 2018. After creating a fait accompli, no one dared demolish it, and the county government simply did not penalize it, instead helping the operator submit an overall district rezoning development case.

Land Administration Department: Fragmented subdivision of land is the operator's legal right

The Green Energy Section of the Economic and Green Energy Development Department stressed that county government counseling does not mean approval is guaranteed. Under the regulations of the Bureau of Energy of the Ministry of Economic Affairs, legal land rezoning and installation must be obtained, and only after passing the "equipment registration" review can Taipower purchase electricity from the operator under contract. If the operator cannot complete legal land rezoning, then the operator will also bear the risk of loss itself.

But regarding the obvious illegal use of this plot of land, the Economic and Green Energy Department shifted responsibility to the Land Administration Department. Section Chief Wang of the Land Use Section of the Land Administration Department said that it had already fined the operator twice under Article 21 of the Regional Planning Act for violating zoning use regulations, but after the operator's development application entered the supplementation procedure, "by convention we respect the competent authority for the target undertaking (Economic and Green Energy Department) and give the operator time to seek legalization."

The question is, when the operator first divided the 10-hectare plot into 72 small parcels, did the Land Administration Department not suspect the operator's development intention at all? Section Chief Wang only said: "Aquaculture land, unlike agricultural and pastoral land, does not have a 0.25-hectare subdivision scale restriction. Fragmented subdivision of land is the operator's legal right."

County government actively covers up, tolerates loss of national land, public office becomes accomplice

According to the division of duties, the Economic and Green Energy Department can only accept "establishment permits," while land rezoning is still handled by the Construction Department. However, the Construction Department is also the unit that demolishes illegal buildings. Acting Director Chen Weihong of the Construction Department initially said "I have not seen this rezoning case," then changed his statement to "we have received it, and the case is still in the process of supplementary documents."

Chen Weihong then admitted frankly, "Green energy is a franchised industry. Only after the competent authority for the target undertaking agrees and supports it can there be subsequent land rezoning." Chen also said that the key lies with the competent authority for the target undertaking, the Economic and Green Energy Department, while other agencies, such as the Agriculture Department, the Environmental Protection Department handling environmental impact assessments, and the Construction Department, merely cooperate in handling procedures.

County government shields green energy as it encroaches on agricultural and fishery land, does "agricultural land for agricultural use" become empty talk?

Faced with fish pond land being illegally occupied by wind turbines, Section Chief Tan of the Fisheries Section of the Agriculture Department in charge of agriculture and fisheries awkwardly said, "Everything is subject to the opinion of the main governing authority, the Economic and Green Energy Department." Technician Wang, the original handler who received the report, added, "From the standpoint of the Agriculture Department, the aquaculture zone is reclaimed tidal land in which the government has invested large budgets for improvement. It should be used for professional aquaculture and should not be developed in fragmented form."

Green energy is a major policy promoted by Changhua County, but Changhua is also a major agricultural and fishery county. Faced with competition for land between green energy and agriculture and fisheries, public servants revealed a sense of powerlessness: "The central government lacks overall planning. The Bureau of Energy has no policy-led land inventory, so energy operators develop agricultural, fishery and pastoral land everywhere. Similar incidents have occurred in every county and city. As an agricultural administration unit, we are quite helpless." (Article to be continued, please keep reading)