Illegal Wind Turbine Fraud Case 02"Unscrupulous Operators Corrupt Green Energy, Energy Bureau Turns a Blind Eye to Violations, Construction and Planning Agency: Work Should Be Ordered Stopped

(Continued from previous article) Land within the Fangyuan aquaculture exclusive zone in Changhua was illegally used to build a wind power plant. Fishermen reported it when construction began, but the Changhua County Government not only tolerated its completion but even helped legalize it on the spot. The operator, emboldened by government endorsement, issued "Wind Profit Coin" to raise funds and then passed it on, leaving investors stranded, spawning a "green energy scam."

In response, the Changhua County Economic and Green Energy Development Department stated that because the operator had obtained the "Renewable Energy Power Generation Equipment Consent Registration" issued by the Energy Bureau of the Ministry of Economic Affairs, the county government had a responsibility to provide guidance for legalization. The Energy Bureau of the Ministry of Economic Affairs claimed it "only learned about it after the fact" to distance itself from responsibility, but it would also not revoke the consent permit.

Wang Bainian, head of Rubao Xingye, the company that currently took over the land and the illegal wind turbines, stated, "The government should actively provide guidance, not crack down or suppress. At the beginning, everyone was unfamiliar, and mistakes were inevitable." Regarding the future legalization review process, Wang Bainian was full of confidence: "Several hundred million yuan has already been invested. No matter how long it takes, I will strive to complete legalization." Regarding the fundraising scam, Wang stated it was done by the previous company and had nothing to do with him.

Energy Bureau of the Ministry of Economic Affairs: Operator Took Advantage of Loopholes, Energy Bureau "Learned After the Fact"

According to green energy development procedures, the operator must first obtain "consent registration" from the Energy Bureau of the Ministry of Economic Affairs, then sign a "Power Purchase Agreement" with Taipower, and only after that can it apply to start construction. However, the illegal wind power plant in Fangyuan, Changhua, illegally started construction in May 2017, was reported in August, and was fined by the county government in October. Yet the Energy Bureau of the Ministry of Economic Affairs and Taipower actually issued consent approval and signed the contract in December 2017 respectively. The procedure was completely reversed. (See the end of the article for the timeline)

Chen Chongxian, section chief of the Energy Technology Division of the Energy Bureau, stated, "Government departments go by official documents. When the Energy Bureau issued the consent registration, the county government did not notify that the land had already been illegally developed," and the "Consent Approval Letter" specifically noted that "land use must comply with regulations." He emphasized that the Energy Bureau "learned about it after the fact."

Regarding the operator dividing the entire ten-hectare land into 72 parcels, each with 660 sq m for wind power development, clearly exploiting a legal loophole, Chen stated that even if this 10-hectare area is divided into 72 land numbers, it is still the same green energy development case. The operator has two ways to remedy it: "First, if going through permitted use, within 10 hectares at most 660 sq m can be used for wind power, and the rest must be demolished. Second, if going through 'whole-area rezoning,' a development plan must also be submitted in accordance with legal norms to change the use zoning."

Operator Has No Fear, Fails to Submit Supplementary Documents for Violations, Continues to Expand Violations

"The Changhua County Government's guidance to the operator is not to affirm that these ten hectares are legal, but to provide the operator with information so it knows where the detour path for remedial measures is?" Chen Chongxian emphasized, "The operator has already applied for extension several times. The county government has required the operator to submit supplementary documents, and approval will only be granted if it complies with land regulations. Otherwise, it would not have been delayed until now without obtaining a license to sell electricity."

However, since the county government accepted the operator's application in January 2018, more than two years have passed until now (2020), and the operator still has not completed the supplementary documents. Moreover, it has no fear and continues to update equipment, expanding the facts of violation. In response, Chen Chongxian believed that the county government and the central government had fulfilled their responsibilities: "The government's attitude is to provide guidance, but the operator must bear the investment risk itself. It is possible that this investment cannot be recovered!"

Energy Bureau Turns a Blind Eye to Violations but Does Not Revoke "Consent Approval," Operator Has No Fear

But it is puzzling why the Energy Bureau would rather watch the violating operator apply for changes than revoke the "consent registration." Chen Chongxian stated, "Before 2017, the legality of land use in green energy development procedures was only reviewed at the final 'equipment registration' stage. Therefore, before 2017, issuing 'consent registration' did not require land legality as a condition."

However, the Energy Bureau's statement appears contradictory. It first granted consent approval for the development case with the proviso that "the land use in this case must be legal," and then used "consent registration does not require land legality" as the reason why "the case cannot be revoked." What exactly is the necessity of land legality for green energy development cases?

Chen Chongxian stated that in the past, only "solar power development" was required to attach proof of legal land use when applying for consent registration, while "wind power development" did not require legal land documents. A reporter verified that the 2019 "Comparison Table of Amended Articles of the Regulations on the Installation and Management of Renewable Energy Power Generation Equipment" added that "wind power generation equipment installed on the ground" must also provide relevant land documents such as consent for permitted use or rezoning, or business initiation plans. Although the Energy Bureau belatedly tried to remedy the situation, in this case it allowed the operator to violate the law. This not only severely damaged the image of green energy, but also saw the central and local governments passing the buck to each other, with no one taking responsibility.

Construction and Planning Agency of the Ministry of Economic Affairs: According to laws and regulations, the operator should be ordered to stop work and restore the original state within a time limit; if necessary, the case should be transferred to the district prosecutors office

According to land rezoning regulations, in subsidence areas with development area under 30 hectares, "solar power development" may be directly reviewed by county and city governments for rezoning. However, this case is "wind power generation," and the review authority lies with the central Construction and Planning Agency.

Zhu Weiting, section chief of the Second Section of the Comprehensive Planning Group of the Construction and Planning Agency, responsible for reviewing land rezoning business, found this case unbelievable after learning about it: "The operator illegally built a wind power plant in an aquaculture zone. According to Article 21 of the Regional Plan Act, work should immediately be ordered stopped and the original state restored within a time limit. Even if a development plan must be submitted supplementarily, the operator should not be allowed to continue expanding violations. Penalties may be imposed repeatedly, and if necessary, water and electricity supply may be cut off and the case transferred to the district prosecutors office."

Zhu Weiting stated, "Aquaculture land belongs to broadly defined agricultural land. To change it to other uses, it must be approved by the competent agricultural land authority. If it is sent to the Ministry of the Interior (Construction and Planning Agency) for review, the local competent agricultural land authority is the Agriculture Department, and at the central level it is the Council of Agriculture." Therefore, if this case enters review by the Construction and Planning Agency in the future, the opinion of the Council of Agriculture will play a key role.

Takeover Operator: No Matter How Long It Takes, the Wind Power Plant Will Definitely Be Made Legal

Behind this illegal wind power development case is a complex capital structure. There were several original developers. They issued "Wind Profit Coin" to recruit investment. After successfully raising funds, the person in charge absconded with the money, and the company's whereabouts became unknown. The main developer, Zhaobang Company, had actually already sold the "development rights" to Rubao Xingye when the wind turbines were being built, and Rubao Xingye funded and completed the construction, becoming the current official owner of the case.

Rubao Xingye is a fairly large-scale automobile nut factory in Tainan. Its head, Wang Bainian, plans to upgrade the old nut factory into a wind turbine equipment manufacturer and will in the future move into the developing Shalun Green Energy Industrial Park. The small wind turbine factory in the Fangyuan Wanggong aquaculture zone thus becomes the company's best advertisement.

Facing the land development controversy in this case, Wang stated, "Small enterprises respond to policy by doing green energy. The government should actively provide guidance, and we hope the government will provide guidance rather than crack down or suppress. At the beginning, everyone was unfamiliar, and there were no clear legal guidelines, so mistakes were inevitable."

As for the investment dispute caused by the public fundraising in this case, Wang believed, "The previous party (Zhaobang) transferred the equipment rights in May of year 106 (2017) and continued to publicly advertise and solicit investment. That behavior was quite malicious." But he stated, "The illegal fundraising issue has nothing to do with our company. We have already explained this to investors and entrusted a lawyer to handle it."

Speaking of the future legalization review process, Wang Bainian was clearly confident: "With so much invested, it is impossible to give up now. Several hundred million yuan has already been invested. No matter how long it takes, I will strive to complete legalization." He raised his voice and called out to the government: "If this one cannot be done, what other company would dare to respond and invest in the future?"

Alien Base Lands in Fishing Village, Fishermen: Destroying the Largest Aquaculture Exclusive Zone in Taiwan

Facing this group of illegally built wind turbines with a unique appearance, regarded as an "alien base," local residents of Fangyuan Township are divided into two opinions. Some believe the wind turbine power plant is very out of place: "The sea breeze is salty and humid. Metal wind turbines will rust and be damaged within two or three years and simply cannot generate electricity." Others believe, "It is rare for a coastal area to have a scenic spot comparable to the High-Heeled Shoe Church or the Crystal Church, which can attract outsiders to come and take photos and check in."

Liang Xiangsheng, head of the local Xinbao Village, agrees with keeping this strange "alien base," hoping it can bring a glimmer of life to the declining fishing village. "After all, hard clams are getting harder and harder to farm, and life in the fishing village will become more and more difficult. Having one more scenic spot is always good." He emphasized that under the premise of "no pollution and no obstruction of aquaculture," he holds a positive attitude.

"Once One Violation Is Tolerated, Other Violations Follow"

Chen Bingchen, a local artist in Fangyuan who has long paid attention to local culture and coastal natural landscapes, cannot agree that the illegal wind power plant can serve as a new scenic spot in Fangyuan. He believes, "The appearance of this kind of monster in farming and fishing villages essentially means giving up agriculture and fishing. The fundamental reason is that land acquisition is cheap."

Chen Bingchen pointed out, "What is artificially manufactured is fashion, not true beauty." In his eyes, Fangyuan does not need an "alien base" or giant wind turbines. "Fangyuan's characteristics are the sunset, clouds, and sea view, as well as the simple fishing village life." He believes that preserving simplicity and nature is Fangyuan's beautiful asset.

"Agricultural land should be used for agriculture and should not become an illegal factory or wind turbine power plant." He is even more worried that "once one case is tolerated, other illegal uses will follow. What will happen to these professional aquaculture operations? What will happen to the fishermen?" Local fishermen also revealed that many landowners hope "fishery-solar symbiosis" will bring profits, and rents for aquaculture land are already stirring.

In the Name of Developing Green Energy, Opening a Back Door to National Land Development

Shi Yueying, secretary-general of the Changhua Environmental Protection Alliance, stated, "The Wanggong aquaculture exclusive zone has the advantage of industrial clustering. Operators wanting to set up wind power plants should look for more suitable places." She worries that the operator illegally started construction first, and the county government actually helped the operator find a way out. Such a "broken window effect" will make more operators reach into fishing pond land. If the clustering advantage of the aquaculture exclusive zone is lost, "more and more fishermen will abandon aquaculture, accelerating the decline of fishing villages."

Cai Huixun, director of the Citizens of the Earth Foundation, harshly criticized, "This case is an unscrupulous operator dragging green energy policy down with it. This case must absolutely not be allowed to pass. Fake green energy and real fundraising fraud, a scam will cause the image of green energy to collapse." She suggested that government agencies should fine the operator and restore the original state. Otherwise, "once this precedent is set, in the future agricultural and fishing land will first have wind turbines installed and solar panels built, getting on the bus first and paying the fare later. This is unfair to law-abiding operators and is a very bad case."

In recent years, from the central to local governments, in order to sprint for green energy development performance, they have opened a back door to national land, turned a blind eye to illegal construction by operators, and then under the name of guidance helped operators legalize on the spot, tolerating excessive development of agricultural and fishing land. How many similar cases are there? It is worth examining and investigating.

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