Evaluation of Renewable Energy Support Projects

 

Published on June 29, 2026
Published by Social Administrative Program Evaluation Division



 

   Expanding renewable energy is a key policy objective to ensure energy security, achieve carbon neutrality, and develop future growth industries. To increase the supply of renewable energy, the government plans to revise the Renewable Portfolio Standard (RPS), while expanding renewable energy projects and related budgets, including the Sunlight Income Village project, support for the installation of air-source heat pumps, and the supply of energy storage systems (ESS). Against this backdrop, this report provides a comprehensive review of government policies and projects and explores challenges and recommendations for improvement in key projects.
   First, there has been a lack of policy consistency, such as significant fluctuations in the objectives of renewable energy supply policy at different times. Renewable energy policy has a significant impact on related industries, which act as future engines of growth. As a result, policy consistency has become an important consideration. In addition, discrepancies between the targets of the Nationally Determined Contributions (NDC) and those of domestic initiatives may undermine the credibility of government policy and its willingness to achieve those targets. This highlights the need to clearly align policy directions with project objectives.
   Second, the government plans to revise the RPS, one of the core frameworks in its renewable energy policy. In doing so, the government needs to refine the design of the system based on a comprehensive review of policy targets, the potential impact on the revenues of existing power generation businesses, and the possibility of policy conflicts. The government also needs to enhance the design of new renewable energy projects, such as the Sunlight Income Village and air-source heat pump projects, by considering a wide range of constraints, including profitability, grid shortages, and the rationality of support requirements.
   Third, even if the government expands renewable energy supply, insufficient transmission and distribution networks may limit the expected outcomes due to connection restraints and curtailments. In fact, some of the government's renewable energy projects have been delayed or suspended due to grid connection delays and insufficient hosting capacity, leading to calls for an expansion of transmission and distribution networks. While the government supports the installation of the ESS to deal with such constraints, further institutional and policy efforts are needed, such as presenting clear revenue models and strengthening the related systems to encourage active participation from virtual power plant operators.