First ‘citizen’ wind farm to cease operations by 2016
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.
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.