Wheeling Agreement Taiwan
June 11, 2023
Uncategorized
A wheeling agreement is a contract between energy producers and consumers that allows for the transfer of energy from one source to another. In Taiwan, this agreement is becoming increasingly important as the country seeks to increase its use of renewable energy sources.
The Taiwanese government has set a target of generating 20% of its energy from renewable sources by 2025. To achieve this goal, it is necessary to expand the use of solar and wind power. However, the intermittent nature of these energy sources means that there will be times when they produce more energy than is needed, and other times when they produce less. This is where the wheeling agreement comes in.
Under a wheeling agreement, energy producers can transfer excess energy to other consumers who need it. For example, a solar farm that produces more energy during the day than it needs can transfer that energy to a factory or office building that needs power during the same time period.
The wheeling agreement also allows for the transfer of energy from different parts of the country. This means that if there is excess energy being produced in one area, it can be transferred to another area where it is needed. This helps to balance the overall energy supply and demand.
One of the benefits of the wheeling agreement is that it can help to reduce the need for expensive energy storage solutions. Instead of storing excess energy, it can be transferred to other consumers who need it. This reduces the overall cost of renewable energy and makes it more competitive with traditional energy sources.
However, the wheeling agreement is not without its challenges. One of the main obstacles is the lack of infrastructure to support the transfer of energy. This includes the need for new transmission lines and substations. Additionally, there may be regulatory barriers that make it difficult for energy producers and consumers to enter into wheeling agreements.
Despite these challenges, the wheeling agreement is an important tool for promoting the use of renewable energy sources in Taiwan. It allows for the efficient use of energy, promotes the development of new energy infrastructure, and helps to reduce the overall cost of renewable energy. As Taiwan continues to work towards its renewable energy goals, the wheeling agreement will play an increasingly important role in its energy system.