RE100 and 24/7 Carbon-free Energy (CFE) are complementary, and investments in renewable energy should not be delayed by debates over renewable and nuclear energy, said Sam Kimmins, director of energy at The Climate Group and chairman of RE100, in a media interview after the 2024 Cathay Sustainable Finance and Climate Change Summit.
Sam Kimmins, director of energy at The Climate Group and chairman of RE100. (Photo: Carol Chen)
According to RE100’s annual survey, Taiwan ranks among the top 10 most difficult countries to buy renewable energy, but as an ambitious latecomer, the government is already discussing 24/7 CFE, said Kimmins.
The 24/7 CFE Compact is a voluntary commitment, aiming to fully decarbonize the grid by using 100% carbon-free electricity around the clock and addressing the intermittency of renewable energy by allowing for the use of nuclear energy and battery storage.
In recent years, companies like Microsoft and Google have committed to achieving 24/7 CFE by 2030, ensuring that their hourly electricity use is carbon-free.
While some scholars have argued that the international community has shifted from promoting RE100 to 24/7 CFE, Kimmins emphasized that RE100 and 24/7 CFE are complementary initiatives, urging countries to accelerate the deployment of renewable energy.
RE100, 24/7 CFE not mutually exclusive
When it comes to nuclear energy, RE100's stance is clear; it encourages renewable energy with sources including wind, solar, geothermal, hydro, and biomass, but not nuclear energy, said Kimmins.
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Market insight: From RE100 to CFE 24/7: Addressing challenges for corporates in achieving carbon-free energy in Asia
RE100 promotes renewable energy, including wind, solar, geothermal, hydro, and biomass. (Photo: iStock)
Over 400 companies have joined RE100, with 33 achieving 100% renewable energy use and driving up to USD 1 billion in renewable energy investments, suggesting that RE100 will play a crucial role in driving renewable energy growth over the next decade, he said.
While some tech companies are moving towards 24/7 CFE, Kimmins emphasized that RE100 and 24/7 CFE are not mutually exclusive but complementary. However, in the long run, carbon-free energy must be able to supply 24/7 to meet business needs.
When the net-zero transition becomes a debate between renewables and nuclear energy, he said that while there are discussions on technologies like nuclear and carbon capture, renewable energy is the only option for quick, low-cost development, and investment must be accelerated without being distracted by these debates.
Delaying green electricity purchases may cause companies to fall behind
While current green electricity prices are high in Taiwan, Kimmins indicated that renewable energy will become cheaper once it reaches a certain capacity.
The cost of offshore wind power is expected to drop significantly once it reaches a scale of 3-4 GW. With an installed offshore wind capacity of 2.5 GW, Taiwan is expected to see a price inflection point in the next year or two.
Taiwanese companies tend to delay purchasing green electricity until prices drop, but Kimmins warned that this approach would cause them to lag behind. Companies like Delta Electronics, TSMC, and Cathay Financial Holdings have long participated in the green electricity market, which is not achieved overnight but requires sustained investment.
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Kimmins warns that waiting for green electricity prices to drop before buying will cause companies to lag behind. (Photo: Carol Chen)
Taiwan needs clear policies, key sector development for renewable energy leadership
Kimmins believed the renewable energy industry relies on economies of scale. For instance, due to their size and cost, wind turbines cannot be produced everywhere, necessitating regional cooperation based on attracting investment and building infrastructure.
Taking Vestas, the world's largest wind turbine manufacturer, for example, it produces wind turbine blades in the UK due to its ample business volume and access to the European market.
Kimmins proposed two suggestions for the development of Taiwan's renewable energy industry:
First, the government should establish clear policy directions to help Taiwan become a focal point for attracting external investment.
Second, consideration should be given to which businesses are most suitable for Taiwan's development to become early leaders in substantial investment, thereby offering competitive prices and exporting products to other countries.
Taiwan's renewable energy generation accounted for 9.9% by the end of 2023, falling short of its target of 20%. Despite slow progress, Kimmins expressed optimism about Taiwan's advanced ideas, speed, and innovation in renewable energy development, and believed that Taiwan has the potential to become a regional leader in renewable energy in the years to come.
