First ‘cit­i­zen’ wind farm to cease op­er­a­tions by 2016

The China Post - - TAIWAN BUSINESS - BY STEPHANIE CHAO

Tai­wan’s first cit­i­zen wind farm, which was es­tab­lished by the Penghu En­ergy Tech Co. (

) nine months ago, has an­nounced it will un­dergo liq­ui­da­tion and dis­band.

The Penghu En­ergy Tech Co. was founded by the Penghu County Gov­ern­ment, and its shares were open for sale to county cit­i­zens.

The com­pany was given in­vest­ment cap­i­tal from the gov­ern­ment and Tai­wan Co­gen­er­a­tion Corp. (Tai­wan Cogen, ). Both put up cap­i­tal of NT$5 mil­lion for the com­pany, and Chung-Hsin Elec­tric & Ma­chin­ery Mfg. Corp. (

)

con­trib­uted NT$4 mil­lion.

How­ever, the com­pany has said its lacks the funds to con­tinue op­er­a­tions, and af­ter an as­sess­ment sug­gested its po­ten­tial profit rate would be too low, the board of di­rec­tors de­cided to im­ple­ment a stop-loss point.

As the com­pany is cur­rently set­tling ac­counts for its rein­vest­ment in sub­sidiary com­pa­nies, the Penghu En­ergy Tech Co. will cease op­er­a­tions and shut down in 2016.

‘A pity’: Penghu Cit­i­zens

A Penghu lo­cal sur­named Chen said the gov­ern­ment at­tracted thou­sands of ap­pli­cants for the project by an­nounc­ing it would “share all of the benefits with cit­i­zens if they be­came share­hold­ers.”

Eight hun­dred and ten cit­i­zens be­came po­ten­tial share­hold­ers, yet the project ran out of steam be­fore they had the chance to pay fees.

A lo­cal sur­named Lu lamented the end of the failed project, say­ing it was “a pity” be­cause the gov­ern­ment had in­tro­duced re­new­able en­ergy reg­u­la­tions, bonuses when the fac­to­ries were set up, and fair­trade min­i­mum pur­chase prices to ben­e­fit the share­hold­ers.

“I wanted to try my hand

at in­vest­ing NT$100,000,” Lu said. Other po­ten­tial stock­hold­ers were re­lieved that they hadn’t al­ready paid any money when the com­pany an­nounced its bank­ruptcy.

A Blow to Penghu’s Wind Power Devel­op­ment

The Ex­ec­u­tive Yuan ( ) ap­proved the pol­icy that aimed to trans­form Penghu into a “low­car­bon is­land” back in 2011, cit­ing wind-power among its main ob­jec­tives for the is­land’s devel­op­ment.

Of­fi­cials said that the Penghu gov­ern­ment had con­ducted sev­eral dis­cus­sions with ex­perts in the re­new­able wind-en­ergy in­dus­try, and claimed the Penghu En­ergy Tech Co.’s dis­band­ment would hin­der other com­pa­nies’ de­sire to in­vest in the off­shore is­land’s wind-en­ergy in­dus­try in the fu­ture.

The Min­istry of Eco­nomic Af­fairs (MOEA, ) pointed out that the com­pany must pro­vide a re­vised pro­posal for the pro­gram, as well as backup mea­sures for the wind farm so that it will be ca­pa­ble of gen­er­at­ing 64,000 kilo­watts.

The MOEA sug­gested that the Penghu En­ergy Tech Co. hand the project over to the Tai­wan Power Co. (Taipower, ) or other com­pa­nies, should they de­cide to con­tinue the wind farm’s op­er­a­tion.

CNA

This un­dated photo shows a wind farm in Penghu. The Penghu County Gov­ern­ment set up the Penghu En­ergy Tech Co. ( ) last year, in the hope of con­struct­ing Tai­wan’s first low-car­bon is­land. The gov­ern­ment planned to begin to de­velop wind power re­sources, but due to a lack of funds, and Tai­wan Co­gen­er­a­tion Cor­po­ra­tion (Tai­wan Cogen, ) re­fus­ing to up its in­vest­ment, the Penghu En­ergy Tech Co. an­nounced its clo­sure and liq­ui­da­tion yes­ter­day.

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