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Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

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Page 1: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

Energy Emergency Response in Chinese Taipei

CHINESE TAIPEI19-20 October 2011

EWG42

Kaohsiung, Chinese Taipei

Page 2: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

2

I. Overview of Chinese Taipei’s Energy Supply and Policies

II. Legal Framework and Implementation of Stockpiling and Emergency Response System in Chinese Taipei

III. Conclusion

I. Overview of Chinese Taipei’s Energy Supply and Policies

II. Legal Framework and Implementation of Stockpiling and Emergency Response System in Chinese Taipei

III. Conclusion

Contents

Page 3: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

3

I. Overview of Chinese Taipei’s I. Overview of Chinese Taipei’s

Energy Supply and PoliciesEnergy Supply and Policies

Page 4: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Owing to the shortage of indigenous energy resources, 99.4% of total energy supply is imported.

High Dependence on Imported EnergyHigh Dependence on Imported Energy

Indigenous Energy Supply (2010)0.88 Million KLOE

Total Primary Energy Supply (2010)

146.0 Million KLOE

Coal32.1%

Gas 8.6%Nuclear

8.3%

Renewables0.4%

Oil49.0%

Solar andWind Power

12.8%

Solar Thermal11.2%

Gas29.5%

Oil1.6%

Hydro Power44.9%

Energy Supply in Chinese Taipei

Page 5: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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(1)Fossil fuels accounted for 90.9%Fossil fuels accounted for 90.9% of Chinese Taipei’s total energy supply.

(2)Chinese Taipei’s dependence on fossil energy is higher than neighboring countries.

High Dependence on Fossil Energy High Dependence on Fossil Energy

Energy Supply in Chinese Taipei

(3)Electricity from high carbon, coal-fired power plants accounts for 53.4% of electricity supply.

(4)In light of the above facts, Chinese Taipei aims to develop low carbon energy to reduce its dependence on fossil fuel.

Page 6: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Chinese Taipei’s oil import

340Mbbl/yr in total in2010340Mbbl/yr in total in2010Heavy dependence on Oil Heavy dependence on Oil import from MEimport from ME

340Mbbl/yr in total in2010340Mbbl/yr in total in2010Heavy dependence on Oil Heavy dependence on Oil import from MEimport from ME

奈及利亞Nigeria95 萬桶0.28%

Others 32 Mbbl9.35%

11

Saudi Arabia117 Mbbl34.14%

22 Kuwait69 Mbbl20.2%33

Iraq33 Mbbl9.82%

44Iran

27 Mbbl7.83%

Angola19 Mbbl5.54%

55

66Oman

17 Mbbl5.04%

77

United Arab Emirates15 Mbbl4.62%

88

Congo9 Mbbl2.72%

Nigeria0.9 Mbbl

0.28%

1010

99

Indonesia1.7 Mbbl

0.5%

Page 7: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Chinese Taipei’s gas import

Nigeria, 7.6%

Equatorial Guinea, 2.2%

Qatar, 23.8%

Omen, 3.5%

Malaysia, 25.6%

Indonesia17.9%

Others, 11.9%

Australia, 7.5%

Page 8: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Chinese Taipei’s Coal import

Tanjung Bara

Samarinda

Los Angeles

Long Beach6117 浬

(20~22 天 )

Abbot Point (3267 浬、 10~12 天) Darlymple Bay (3365 浬、 10~12 天)

Gladstone (3567 浬、 11~13 天 )Newcastle (4223 浬、 12~15 天)

Port Kembla (4318 浬、 12~15 天)

(1569 浬、 5 天)

Richards Bay (6402 浬、 20~23 天) (1659 浬、 5 天)

China6.2%

South Africa4.1%

U.S0.4%

Canada1.2%

Australia45.4%

秦皇島1135 浬(4 天 )

Indonesia37.4%

100% of coal is imported 63.1Mt/yr in 2010 Mainly supplied by Australia

and Indonesia

Russia1.8%

Page 9: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Chinese Taipei’s Energy Policy

Policy Objective

Improve energy efficiency by at least 2% annually

Reduce energy intensity by 20% by 2015 (with 2005 as base year)

Reduce energy intensity by at least 50% by 2025 via technical breakthrough

To establish a secure

energy supply system

to support the needs of

economic development

Enhancing energy efficiency Developing clean energy Securing stable energy supply

Reduce CO2 emission to the level of 2005 by 2020, and further reduce CO2 emission to the level of 2000 by 2025

Increase the share of low carbon energy in power generation to at least 55% by 2025.

StabilityEfficiency Cleanness

Multi-layered policy measures are required.

Page 10: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Policy Measures for Energy Stability Stable supply of energy resources1. To diversify procurements to reduce concentration of energy supply

2. To increase ownership of resources to enhance energy independency

3. To expand supply sources via international cooperation

Sound energy supply facilities1. Sufficient production facilities

2. Regular maintenance of energy facilities

3. Strengthening energy transmission and storage facilities

4. Ensure energy transit security

Integrated risk management mechanism1. Regulatory regime and special task forces

2. Emergency response mechanism

The development of renewable energy and energy technology1. The development of renewable of high independency

2. The development of low-carbon energy technology

Important short-term measures

Page 11: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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ⅡⅡ. Legal Framework and Implementation . Legal Framework and Implementation

of Stockpiling and Emergency Response of Stockpiling and Emergency Response

System in Chinese TaipeiSystem in Chinese Taipei

Page 12: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Chinese Taipei’s oil stockpiling

Petroleum Management Act

By the consumption level of 44 Mbbl per day, Chinese Taipei has By the consumption level of 44 Mbbl per day, Chinese Taipei has kept kept 128 days128 days of oil stocks in total as of Feb 2011. of oil stocks in total as of Feb 2011. (government:38 days; private sector:90days)(government:38 days; private sector:90days)

Government and private sector are required to maintain oil Government and private sector are required to maintain oil stock equal to at least stock equal to at least 30 days30 days and and 60days60days of domestic demand of domestic demand respectively. (in line with IEA 90-day obligation)respectively. (in line with IEA 90-day obligation)

LPG stock should be maintained to a level of no less than LPG stock should be maintained to a level of no less than 25 25 daysdays of domestic demand. of domestic demand.

Page 13: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Regulation on Oil Disposal during Emergency

Oil emergency response

In the face of oil disruption or dramatic oil price In the face of oil disruption or dramatic oil price fluctuation which may pose threats to the stability of oil fluctuation which may pose threats to the stability of oil supply and national security, the Ministry of Economic supply and national security, the Ministry of Economic Affairs are empowered toAffairs are empowered toimplement restrictions on oil import, export and ‧implement restrictions on oil import, export and ‧holdingsholdings‧‧ implement restrictions on oil distribution and sellingimplement restrictions on oil distribution and sellingset up the maximum of oil prices‧set up the maximum of oil prices‧‧‧ adjust the quantity, appropriate and make specific use adjust the quantity, appropriate and make specific use of oil stocksof oil stocks

Page 14: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Chinese Taipei’s gas stockpiling

Natural gas enterprises are required to maintain certain stock Natural gas enterprises are required to maintain certain stock capacity: capacity:

——natural gas production enterprises: natural gas production enterprises: half dayhalf day

——natural gas import enterprises: natural gas import enterprises: 15 days15 days

——natural gas enterprises that runs both production and import: natural gas enterprises that runs both production and import: 15days15days

Natural Gas Enterprise Law

Taichung LNG station

YongAn LNG station

Total gas stocks are equivalent to 15.7 days of domestic demands

Page 15: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Gas emergency response

Regulation on LNG supply and price control

•In the face of gas disruption or dramatic gas price fluctuation In the face of gas disruption or dramatic gas price fluctuation which may pose threats to the stability of gas supply and national which may pose threats to the stability of gas supply and national security, the Ministry of Economic Affairs are empowered to security, the Ministry of Economic Affairs are empowered to control natural gas supply and prices.control natural gas supply and prices.

‧‧reduce gas supply to users of different sectors by order of priority: reduce gas supply to users of different sectors by order of priority:

— — power utilities power utilities (reduction by 10%)(reduction by 10%)

— — cogeneration users cogeneration users (reduction by 5%)(reduction by 5%)

—— industrial users industrial users (reduction by 5%)(reduction by 5%)

— transportation users — transportation users (reduction by 10%)(reduction by 10%)— public LNG enterprises — public LNG enterprises (reduction by 10%)(reduction by 10%)

To minimize the impact on general users

Page 16: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Regulation on LNG supply and price control (cont.)

Gas emergency response

In case of:In case of:1. A monthly average price increase of imported natural gas 1. A monthly average price increase of imported natural gas exceeding more than 50%exceeding more than 50%2. A cumulative average price increase over three consecutive 2. A cumulative average price increase over three consecutive months of imported natural gas exceeding more than 50%months of imported natural gas exceeding more than 50%The Ministry of Economic AffairsThe Ministry of Economic Affairs may command LNG import may command LNG import enterprises to temporarily suspend price adjustment or to enterprises to temporarily suspend price adjustment or to partially adjust natural gas prices. partially adjust natural gas prices.

Page 17: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Chinese Taipei’s coal stockpiling

Energy Management Act

Coal-fired power plants are required to maintain coal stocks of Coal-fired power plants are required to maintain coal stocks of no no less than 30 daysless than 30 days by the average coal demand of the previous year. by the average coal demand of the previous year.

Legalized coal stocks Stocks set by power plants

Chinese Taipei 30 days 30~45 days

Currently Chinese Taipei’s coal stocks are equal to Currently Chinese Taipei’s coal stocks are equal to 43 days43 days of of domestic demand.domestic demand.

Page 18: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Measures for coal and electricity emergency response

Restriction on the power use during power failure

•In the face of insufficient power supply, power utilities may In the face of insufficient power supply, power utilities may initiate initiate power rationingpower rationing upon approval of the Ministry of upon approval of the Ministry of Economic Affairs. Economic Affairs.

• Power rationing is mainly applied to industrial users. Users Power rationing is mainly applied to industrial users. Users from national defense sector, transportation sector or other from national defense sector, transportation sector or other important sectors may not be subject to the restriction above. important sectors may not be subject to the restriction above.

Page 19: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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ⅢⅢ. Conclusion. Conclusion

Page 20: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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Follow the IEA 90-day obligation and surpass the target practically to ensure sufficient supply during emergency

Legal framework and obligation are needed and proved to be helpful since Chinese Taipei is heavily dependant on imported energy

Should develop diversified mixture of energy sources and increase the uptake of indigenous renewable energy to ensure energy security

Working on establishing an indexed warning system of energy security risk for the sake of more effective, efficient and dynamic responses to energy emergency and energy security

Willing to cooperate on energy emergency response with international mechanisms

Page 21: Energy Emergency Response in Chinese Taipei CHINESE TAIPEI 19-20 October 2011 EWG42 Kaohsiung, Chinese Taipei

經濟部能源局Bureau of Energy

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