Formosa Plastics doesn't even count as a major electricity user? Huge loopholes in the clause leave companies' green energy scorecards covered in red

The Bureau of Energy of the Ministry of Economic Affairs is about to announce the "major electricity user clause" in November, but the Taiwan Renewable Energy Alliance (TRENA) held a press conference today (10/27) criticizing this amendment for actually removing the provision to "publish the roster of major users," refusing to let society scrutinize it, which is quite disappointing.

The alliance further pointed out a major legal loophole: Taiwan's largest carbon emitter, that is, a super major electricity user with three coal-fired power plants of its own: Formosa Plastics Corporation, under current law does not fall within the definition of a major electricity user, which is simply baffling!

A survey by the Renewable Energy Alliance of the top 15 carbon emitters found that although they are already well-known listed companies, their planning related to renewable energy is still insufficient. Innolux and AU Optronics lacked responses for explanation, and Nan Ya Plastics did not even disclose its electricity consumption in kilowatt-hours. Some companies build green energy only to earn money from selling electricity, rather than for self-generation and self-use. The alliance criticized these major electricity user companies for failing to live up to the public's expectations for the energy transition, causing Taiwan's industrial competitiveness to fall behind global trends.

Super major user Formosa Plastics uses 2.67 billion kWh per year, yet is not on the list of major electricity users

To implement the energy transition and corporate energy responsibility, the Renewable Energy Development Act was amended in 2019 to regulate companies with extremely large electricity consumption, requiring them to install and use renewable energy, and to establish the "Regulations Governing Electricity Users with Contracted Capacity of a Certain Level or Above That Shall Install Renewable Energy Power Generation Equipment," abbreviated as the "major electricity user clause."

The Renewable Energy Alliance reviewed the performance of major electricity users one by one and found that three companies, Formosa Petrochemical, Dairen Chemical, and Nan Ya Plastics, turned in a blank sheet on all green energy indicators, and did not even have sites for installing renewable energy at their factories.

The alliance specifically named Formosa Plastics, which consumes 2.67 billion kWh of electricity each year and is Taiwan's highest carbon-emitting company, yet claims it is not a major electricity user, further showing the outrageous policy loophole in the "major electricity user clause."

It turns out that the Bureau of Energy's standard for "major electricity user" only counts the "contracted capacity" signed between the company and Taipower, and does not count self-owned power generation. Therefore, although Formosa Plastics is a super major electricity user, because Formosa Plastics generates its own coal-fired power, it is not included in the category of "major electricity user."

At present, the Formosa Plastics Group has 3 coal-fired units each with an installed capacity of 600,000 kW, with a total installed capacity of 2.75 million kW, making it the largest cogeneration plant in the country. It not only provides power for self-use, but can also sell electricity to Taipower, with taxpayers paying Formosa Plastics to purchase electricity. According to the 2019 Mailiao Power Annual Report, Formosa Plastics Power Plant's revenue was 24.3 billion yuan, and after-tax surplus reached 2.2 billion yuan.