July 2024
Taiwan’s Ministry of Economic Affairs Announces New Regulations to Clarify Administrative Procedures for Geothermal Energy Exploration and Exploitation
July 2024
Luke Hung and Andrew Huang
After including provisions related to geothermal energy in the “Renewable Energy Development Act” in June 2023, Taiwan’s Ministry of Economic Affairs (hereinafter “MOEA”) further announced the implementation of the “Regulations on the Permitting and Administration of Geothermal Energy Exploration and Exploitation” (hereinafter “Regulations”) on May 13, 2024. The Regulations aim to clarify the application procedures for geothermal energy exploration and exploitation permits, create a favorable environment for geothermal energy development, and accelerate the advancement of geothermal energy in Taiwan. The six regulatory aspects of the Regulations are as follows:
I. Procedure
The Regulations stipulate that applications for geothermal energy exploration and exploitation are to be handled by the Energy Administration, appointed by the competent authority, MOEA (Article 2 of the Regulations). When reviewing the completeness of the applications, local governments shall be involved, and a review committee consisting of 7 to 11 members, including representatives from relevant ministries, experts, and scholars, may be convened (see Article 15 of the Regulations).
II. Resource
To prevent mutual resource interference between geothermal sites and safeguard the interests of existing operators, if existing geothermal operations are within 500 meters of the surface boundaries where the well projections of proposed exploration or exploitation activities occur, applicants must submit impact assessments and mitigation measures for review by the competent authority (see Articles 7 & 11 of the Regulations).
III. Co-Prosperity
Considering that the exploration or exploitation of geothermal energy may affect local residents and other nearby stakeholders, explorers or developers must hold a local briefing session and submit relevant documents for review before commencing work (Subparagraph 2, Article 20 of the Regulations).
IV. Indigenous-related
For geothermal exploration or exploitation sites located on indigenous lands, tribal lands, or within a specified area of public lands surrounding them, applicants must adhere to Article 21 of the “Indigenous Peoples Basic Law” to protect the autonomy and rights of indigenous peoples (Subparagraph 5, Article 5 & Subparagraph 4, Article 9 of the Regulations).
V. Environment
To ensure the sustainable utilization of geothermal resources and adhere to water intake control principles, operators of geothermal power generation facilities must record daily water usage for power generation, water re-injection amounts (with a ratio of over 90%), and submit quarterly reports to the competent authority and local water management agencies for inspection (Paragraph 4, Article 28 of the Regulations).
VI. Conversion
The Regulations establish a transitional mechanism that allows individuals who have obtained geothermal exploration (or drilling) permits or hot spring development permits before the implementation to apply for a “license conversion” within a specified period. This ensures the safeguarding of their previously acquired rights and interests with the competent authority (see Articles 26 & 27 of the Regulations).
The contents of all materials (Content) available on the website belong to and remain with Lee, Tsai & Partners. All rights are reserved by Lee, Tsai & Partners, and the Content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior permission of Lee, Tsai & Partners.
The Content is for informational purposes only and is not offered as legal or professional advice on any particular issue or case. The Content may not reflect the most current legal and regulatory developments. Lee, Tsai & Partners and the editors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The contributing authors' opinions do not represent the position of Lee, Tsai & Partners. If the reader has any suggestions or questions, please do not hesitate to contact Lee, Tsai & Partners.
Luke Hung and Andrew Huang
After including provisions related to geothermal energy in the “Renewable Energy Development Act” in June 2023, Taiwan’s Ministry of Economic Affairs (hereinafter “MOEA”) further announced the implementation of the “Regulations on the Permitting and Administration of Geothermal Energy Exploration and Exploitation” (hereinafter “Regulations”) on May 13, 2024. The Regulations aim to clarify the application procedures for geothermal energy exploration and exploitation permits, create a favorable environment for geothermal energy development, and accelerate the advancement of geothermal energy in Taiwan. The six regulatory aspects of the Regulations are as follows:
I. Procedure
The Regulations stipulate that applications for geothermal energy exploration and exploitation are to be handled by the Energy Administration, appointed by the competent authority, MOEA (Article 2 of the Regulations). When reviewing the completeness of the applications, local governments shall be involved, and a review committee consisting of 7 to 11 members, including representatives from relevant ministries, experts, and scholars, may be convened (see Article 15 of the Regulations).
II. Resource
To prevent mutual resource interference between geothermal sites and safeguard the interests of existing operators, if existing geothermal operations are within 500 meters of the surface boundaries where the well projections of proposed exploration or exploitation activities occur, applicants must submit impact assessments and mitigation measures for review by the competent authority (see Articles 7 & 11 of the Regulations).
III. Co-Prosperity
Considering that the exploration or exploitation of geothermal energy may affect local residents and other nearby stakeholders, explorers or developers must hold a local briefing session and submit relevant documents for review before commencing work (Subparagraph 2, Article 20 of the Regulations).
IV. Indigenous-related
For geothermal exploration or exploitation sites located on indigenous lands, tribal lands, or within a specified area of public lands surrounding them, applicants must adhere to Article 21 of the “Indigenous Peoples Basic Law” to protect the autonomy and rights of indigenous peoples (Subparagraph 5, Article 5 & Subparagraph 4, Article 9 of the Regulations).
V. Environment
To ensure the sustainable utilization of geothermal resources and adhere to water intake control principles, operators of geothermal power generation facilities must record daily water usage for power generation, water re-injection amounts (with a ratio of over 90%), and submit quarterly reports to the competent authority and local water management agencies for inspection (Paragraph 4, Article 28 of the Regulations).
VI. Conversion
The Regulations establish a transitional mechanism that allows individuals who have obtained geothermal exploration (or drilling) permits or hot spring development permits before the implementation to apply for a “license conversion” within a specified period. This ensures the safeguarding of their previously acquired rights and interests with the competent authority (see Articles 26 & 27 of the Regulations).
The contents of all materials (Content) available on the website belong to and remain with Lee, Tsai & Partners. All rights are reserved by Lee, Tsai & Partners, and the Content may not be reproduced, downloaded, disseminated, published, or transferred in any form or by any means, except with the prior permission of Lee, Tsai & Partners.
The Content is for informational purposes only and is not offered as legal or professional advice on any particular issue or case. The Content may not reflect the most current legal and regulatory developments. Lee, Tsai & Partners and the editors do not guarantee the accuracy of the Content and expressly disclaim any and all liability to any person in respect of the consequences of anything done or permitted to be done or omitted to be done wholly or partly in reliance upon the whole or any part of the Content. The contributing authors' opinions do not represent the position of Lee, Tsai & Partners. If the reader has any suggestions or questions, please do not hesitate to contact Lee, Tsai & Partners.
