Energy, Power & Utilities
Taiwan is reforming its electricity market by liberalizing the renewable energy with open access to the power grid. The amendment of the Electricity Act in 2017 allowed power generated from renewable energy facilities to be sold directly to end users under Corporate Power Purchase Agreement (“CPPA”). The Act also paved the road for unbundling of Taipower, the dominant state-owned integrated electricity company. Taipower is expected to launch an electricity trading platform, starting with the Day-Ahead Ancillary Service Market in 2021.
The feed-in-tariff (FiT) scheme has played a crucial role in encouraging the installation of renewable energy generation facilities. Since the Renewable Energy Development Act (“REDA”) became effective in 2009, Taipower has been obliged to procure all electricity generated from eligible renewable energy generation facilities under 20-year power purchase agreement at fixed FiT announced by the Bureau of Energy (“BOE”). In 2019, the amendment of REDA was announced to further declare the island’s commitment in renewable energy. The Act not only reemphasized the 27GW renewable energy target by 2025, but also set the requirement for heavy electricity users to use certain percent of green power. To cope with the intermittent characteristic of renewable energy, a short-term target of 590MW of energy storage is set by Bureau of Energy.
Taiwan Power Market Structure under 2017 Electricity Act
How we can assist you
- Infrastructure Advisory
- M&A
- Financial modeling and model review (audit)
- Renewable energy procurement consulting
Infrastructure Advisory
We work with domestic and international power and utilities clients to help companies to develop investment strategies, build new operating models, and create new ways of managing to deliver superior customer and investor value.
- Feasibility Studies and business Case preparation
- Lead commercial, financial and strategic advice
- Financial modelling
- Bid support
- Offtaker tender and negotiation
- Project finance advisory
- Post-financial close advice (ad-hoc financial advice, refinancing support, contract management)
- Risk analysis, allocation and quantification
M&A
We provide a full range of M&A advisory services for energy clients, from power generation, transmission& distribution and retail services, and covering the all subsectors across the value chain.
- Lead financial advisor
- Deal strategy and Targeting
- Due diligence
- Value analysis
Financial modeling and model review (audit)
We design and build robust, transparent and flexible models that take into account all commercial and financial drivers and tax and regulatory constraints to support acquisitions, refinancing, joint ventures, alliances, contract bids, asset disposal, and capital projects. In addition, we provide independent model audit for infrastructure public-private partnerships, merger and acquisitions and project finance.
- Project finance model
- Equity valuation model
- Asset management model
Renewable energy procurement consulting
We stay ahead of the changing renewable energy market and all associated regulations and provide strategic advice based on our long-term electricity price forecast model to help our client make strategic renewable energy purchases at reasonable costs.
- Identify market opportunities
- Independent formal RFP process to third party suppliers
- Project due diligence
- Bid evaluation
- Corporate Power Purchase Agreement negotiation support
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