Industrial Revolution is a significant breakthrough for human civilization it brings human beings convenient and cozy life, leading to a new mechanical generation. The way of agriculture, medical treatment, wars and so on has changed, and people are getting used to working with the machine. Nowadays, people scarcely handle matters alone without mechanical assistance. However, the operation of the machine needs combustion of fossil fuel to generate power, and combustion comes about Greenhouse gas, which brings about environmental damage and serious climate change. In order to stop environmental damage continuing, we should look highly on alternative energy and begin to figure out a good way to transform nature power into our daily power using.
Hydropower is the earliest development of green energy projects in Taiwan.
However, due to geography weakness and climate restriction, it is really not suitable to develop hydropower instead of fossil fuel. Furthermore, a dam in Taiwan is mainly for agriculture and people’s livelihood water using. Hydropower generation is just supplementary.
Solar cells must use high purity semiconductors, and in the course of production of semiconductor consumes a lot of energy, resulting in environmental pollution. In other words, although the use of solar energy would not produce pollution, in the manufacturing process still produces environmental pollution.
Taiwan government currently focuses on the wind power development projects.
The government invested huge amounts of money in developing wind power. Wind power generation equipment is much cheaper than solar energy equipment, and it is inexhaustible. But, due to the wind energy are from the air flow and the air density is very small，it is only 1/816 of hydraulic power. Moreover, the air flow changes greatly and unstable.
The wave power generation of company EZE needs a location which has a
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continuous 0.5-meter wave high running the machine. We suggest and accept the project because we are able to take an advantage of location of Taiwan surrounded by sea.
4.2 SWOT Analysis
This section will analyze the Strengths, Weaknesses, Opportunities, and Threats of the feasibility of the sea wave power generator of EZE Energy Company in Taiwan.
4.2.1 Strengths
Taiwan has a perfect natural geographical location, which is surrounded by the sea and the total length of coastline was 1,985,315 meters. The Taiwan coastline is currently used for fishing, military, and harbor. Roughly see how many areas can be used for sea wave electric generation, we may estimate 1% of this coastline can install1,489 MW �1,985,315m×0.01
80m ×6MW = 14,88.98MW� of electric power.
Compared with other countries, Taiwan's geographical position occupies an advantage, which suitable for the development of the sea wave power generation.
The process of operating sea wave power generation is without any materials or fuel consumed, and it just relies on tidal fluctuations to run the axle of generation. It is a very clean energy. In addition, the tide is 24 hours without interruption, the waves fluctuate on the shore, and only with the0.5 meters of wave fluctuations and wave frequency less than 12 seconds is enough to make the generator operation.
The time of construction of the plant only needs 12 months. A group of wave power generation can produce 6MW of electricity with a length of 80 meters. The cost of each plant is US$ 20 million.
4.2.2 Weaknesses
The generator needs to be built along with the coastline. It will be a great problem because coast in Taiwan almost controlled by the government. Moreover, Taiwan is famous for the beauty of the coastline, and much position is suitable for the running of wave power generation but would be destroyed its beauty.
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In addition, when the waves are converting into electrical energy, it occurs with some segment, it is low power efficiency, which is also one of the main reason affecting the large-scale development and utilization of sea wave power generation in Taiwan.
One of the difficulties to build the power plant is the difference structure of the sea base; a new construction plan has to build for the new sea base. In addition, the construction cost is huge, if there is no government support, there is no one can afford the huge construction costs.
4.2.3 Opportunities
In the 20th century is oil industry boom, but in the 21st century will be transferred to the companies which provide renewable energy solution or a team. In the Middle East, for example, has become one of the world’s richest cities, but once the oil reserves gradually dried up, if not dance to another tune, the Middle East may no longer be able to maintain the current bright and beautiful scenery.
A fascinating place in the sea wave generating market is "equal opportunities in the world". In the other words, who can take the lead in research and development, which can be turned to the wave of power generation "flagship" models, and make all kinds of patent layout, who will have the opportunity to monopolize the world's wave power generation market. This is why the countries around the world are smashing a lot of money for the development of the sea wave power generator.
Taiwan government advocacy energy subsidies propose is to recover the nuclear power plant. It is now a perfect time to invest in the sea wave power plant as it is clean and green.
4.2.4 Threats
As Taiwan's current electricity price remains low, it is a very unfavorable factor for renewable energy developing. It needs to raise the non-renewable energy price, and use the benefit of non-renewable energy
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to subsidize renewable energy generating. Thus, people would increase willing to make an investment in the sea wave power generation.
In Taiwan, the ocean electricity faces severe typhoons, earthquakes, and other natural environment challenges. Furthermore, the sea wave plant may suffer fishermen blindly protest.
In the operating technology, seawater corrosion and bad walrus easily leading to wave energy generator components failure is another serious problem.
4.3 PEST Analysis
This section will analyze the Political factors, Economic factors, Social factors and Technological factors of the feasibility of the sea wave power generator of EZE Energy Company in Taiwan.
4.3.1 Political factors
In 2007, Taiwan government has legislated the act of ‘‘Renewable Energy Development Regulations”. Government spares no effort to increase willing of people from all society to use alternative energy development instead of fossil fuel energy.
Not only companies’, but also households’ benefits from the regulation. And the renewable energies include solar energy, bio-energy, geothermal energy, ocean energy, wind energy, hydro energy, and other energies admitted by the authority.
Although there are numerous subsidies and benefits from the legislation, most of them are prone to solar energy development. Due to the fact that government policy is doomed to connect with realistic benefits from beginning to end, there is no real help to the entire renewable progress of technology and development.
The cost of renewable is also higher than fossil fuel and nuclear cost. Although the policy of subsidy and benefit is aim at inducing people to invest in renewable energy, the cruel is the fact that government promotion is just put forward to win the election. They barely look highly on how to realize what they said before. For instance, owing to over than a hundred listed companies producing solar energy
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materials and in order to draw entrepreneurs to support the government, the
‘‘Renewable Energy Development Enforcement Rules’’ from Ministry of Economic Affairs of the Republic of China runs almost for solar energy and benefit just for companies instead of household hold user.
Furthermore, policy focuses on the output of electricity from renewable energy and there is no subsidy and benefit for research and development of renewable energy.
Doubtlessly, there is no enough incentive to push people to create and innovate new technology, and all people definitely put themselves into solar energy instead.
In 2016, Democratic Progressive Party (DDP) in Taiwan wins the presidential election and members of the Legislative are more than fifty percentile. That means they have the authority to make law without a hitch. Before the election, DDP strongly promoted ‘No nuclear homeland’ and supports energy generating transformation. The members of DDP have brought up many amendments to cope with the alternative energy problems. Nevertheless, there is still no operative law and incentive to stimulate people to engage in alternative energy creation and innovation in these new amendments.
Although it relaxes restrictions to household renewable energy limit from 500KW to 2000KW, decreases the limit to household energy using, it still has no real help for energy generating transformation. After all, within the technology and creation of alternative energy so far in Taiwan, only solar energy is developed and mass invested, the cost has dramatically dropped. Compared to solar energy, other alternative energy is in developing, cost still stays high, and normal family and household basically have no enough money to afford. People hardly get started investing in wave energy generation unless the technology and creation progress and advance, which make cost down enough to draw people’s willing.
As a result, wave energy in political factor is still confronted with a great barrier.
People would rather choose low-cost solar energy than high-cost wave energy. Wave energy could only stay on the research of stage.
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4.3.2 Economic factors
Due to policy focuses on alternative energy output subsidy, nobody is willing to invest in new alternative energy which stays on the step of research and feasibility is unknown, not to mention entrepreneurs. As an entrepreneur, considering the balance between risk and benefit is a priority issue. Entrepreneurs are unwilling to choose high risk, high investment and benefit unknown unless the government offers great induce and subsidy to increase their willing or wave energy generating technology has improved with low cost and high benefit. Thus, investing in alternative energy generating technology is a challenge and obstacle in Taiwan nowadays. Some companies in other countries were even bankrupt because of the high cost of wave energy. Doubtlessly, technology and cost are both obstructions need facing and breakthrough.
Table 4-1Unit cost of electricity in Taiwan, 2016
Cost per KWh (NT$) Installed Capacity (MW)
Nuclear Power $2.34 5144 MW
Thermal Power $1.76 30065.1 MW
Solar Power $9.49 931.2MW
Wind Power $2.25 677.7MW
Source: Taiwan Power Company
Currently, Taiwan’s renewable energy only has solar power and wind power.
Table 4-1 shows the unit cost of electricity in Taiwan, 2016. According to the Taiwan Power Company, wind power energy cost per unit is NT $2.25 dollars, installed capacity 677.7MW in the year 2016. Solar power energy cost per unit is NT $9.49 dollars, installed capacity 931.2MW in the year 2016. Sea wave energy in EZE company technology is able to generate a 6MW generator with the US $20 million dollars of construction cost and just required 80 meters of coastline. If the investment
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is leverage, a 6MW power plant can expand to generate 600MW of electric and it just required 8 kilometers of coastline.
Following is the green power cost comparison from EZE Energy Company.
Table 4-1Green Power Cost Comparison
Power Generation Solar Wind Sea Wave
Installation Cost/ KW NT$ 10,230 NT$ 83,700 NT$ 108,500 Maintenance Cost/ KW 20 years NT$ 31,000 NT$ 167,400 NT$ 31,000 Maximum Daily Output/ KWh 2.5 kWh 4.8 kWh 24 kWh Maximum Annual Output/ KWh 912.5 kWh 1,752 kWh 8,760 kWh Maximum Output in 20 years 18,250 kWh 35,040 kWh 175,200 kWh Power Cost per KWh/ 20 years NT$ 7.44 NT$ 7.13 NT$ 0.81
Source: EZE Energy Company
According to EZE company report, the three green power ratios are based on the status of renewable energy in Taiwan data source.
Taiwan government currently emphasizes solar and wind power, but solar energy and wind energy takes too much land space in generating and compared to other countries with plenty of land resources, solar energy development is easily saturated.
On the contrary, Taiwan is rich in ocean resources, and sea wave energy is for 24 hours, unlike the wind and solar energy restricted to weather, climate and out of work with claim air or at night time. Solar energy is just supplementary and unable to replace electricity generating for human beings 24 hours using. Therefore, if we want to thoroughly implement ‘No nuclear homeland’, ocean energy must be the core of the development of alternative energy.
4.3.3 Social factors
Since the development of thermal power and nuclear power generation, local residents at the setup site are extremely resistant. In addition to its air pollution and
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nuclear radiation risk problems, problems even involve the people's land property on the collection and compensation issues. After the operation has started, some external costs have occurred; resulting in the countless reincarnation of the struggle and coordination, taxpayers had to foot the bill.
Solar panels require a lot of land area to set up; the location needs to consider the sunshine angle. On the economic side of the analysis, a 20-million of the investment will need about 1,250 square meters of setting area. Taiwan considers a small island, not bigger as foreign land area; the use of land is very intensive. Under the limited land usage, solar energy’s development saturation is relatively fast; development is limited in the future. The usage on the ocean will not involve peoples’ property rights.
The technology doesn’t produce heat pollution to the ocean to harm the marine life cycle, it is low external cost. Taiwan is surrounded by the sea; the overall usage area of the sea wave generator is small. The generator design breaks through the strength of sea wave disparity. The generator can work with only 50 centimeters of the tide.
The generator almost applicable to the coastline in Taiwan except for the cliff coastal terrain. In the overall social assessment, it has a considerable advantage.
4.3.4 Technological factors
Technical factor is the cornerstone of sea wave energy and plays a great role in investing and developing. It is an essential point to decide whether to go into operation or not.
The types of ocean energy technique at the present time in Taiwan separately are ocean thermal energy, wave energy, tidal energy, ocean current energy respectively.
Synthesizing our country current technology and situation of Taiwan’s ocean, ocean thermal energy, wave energy, and ocean current energy are feasible and possible. In these energies, we focus on sea wave energy and discuss its advantage and disadvantage.
According to amazing ‘Scientific Development, April 2015, period 508’, technology for sea wave energy generation faces so far the following problems.
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(1) In the initial operating technology, seawater corrosion and bad weather easily lead to wave energy generator components failure.
(2) Random wave condition makes it more difficult to effectively run wave generator and the efficiency of the component is unsure.
(3) Unstable wave energy causes the generator unstable power applying, making the user's inconvenience.
In addition, to solve the aforementioned problems, EZE Energy Company has made a breakthrough in technology solution in sea wave energy.
Source: Obtain from EZE Energy Company
First, solve random and unstable wave problems.EZE new technique improves disparity of wave. Compared to 2 to 6 meters disparity in normal wave energy generation, the new technique needs only 0.5 meters that will do the generation. The breakthrough is not only stable but also makes generation suitable to many coastlines in Taiwan.
Second, on the anti-seawater corrosion and rust, compared to traditional materials, it used different materials to make a better protection. The buoy will contact with sea water, it is high-strength and anti-corrosion. The generator machine is set on the platform to visual control the operation and maintenance.Compared to
Figure4-1 Sea Wave Power Generation
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other offshore wave power generation in the sea project, which reduces the difficulty and obstacle on the installation.
The third, sea wave energy generator may restrict by natural climate, typhoon or serious weather conditions which lead to short-term operation stop. When typhoon invasion, the buoy will automatically submerge in the water. The generator will force shut down.