Taipei: Taiwan has demonstrated effective management of the recent oil price crisis through strategic government intervention, maintaining a substantial reserve of 150 days, and advancing clean energy initiatives to 20%.
According to Thai News Agency, Mr. Teera Yang, a radio host on Radio Taiwan International, discussed Taiwan's preparedness on the "Good Morning ASEAN" program on MCOT News FM 100.5. He highlighted that Taiwan's proactive approach in handling energy issues has accustomed the public to a well-managed system, preventing panic such as long queues at gas stations, even amidst rising prices. The fuel pricing system in Taiwan undergoes weekly adjustments, with forecasts announced on Saturdays, confirmations on Sundays, and implementations on Mondays, allowing citizens to plan effectively. The government closely monitors these prices to safeguard the economy's competitiveness.
Mr. Teera further explained that despite the potential for oil prices to exceed 9 baht per liter, the government has intervened with measures like reducing excise taxes and controlling prices to maintain an appropriate level. Price comparisons with Asian counterparts, such as South Korea and Japan, are also conducted to preserve global market competitiveness.
Taiwan's oil companies, although similar to state-owned enterprises, retain full ownership even after privatization, enabling them to absorb losses to stabilize energy prices, contrasting with profit-driven private companies. A significant aspect of Taiwan's strategy is its long-term oil reserve, which covers approximately 150 days, easing concerns about shortages and ensuring consistent fuel availability. The government is also pushing for clean energy, targeting 20% of electricity from renewable sources like wind and solar by 2030, up from the current 16%. Initiatives include mandatory solar panel installations on large new buildings, promoting the "1 Million Rooftop" project, and encouraging solar energy in agriculture.
Additionally, policies incentivize clean energy investments by buying back electricity at rates higher than the standard price, motivating private and household sectors. Mr. Thira concluded that Taiwan's systems effectively address both short-term and long-term energy challenges, including price control, diversification of oil import sources, and the development of alternative energy, allowing for efficient management of energy uncertainties.