Where does Apple's green electricity come from? It needs to be purchased locally, and only newly generated electricity counts. With businesses unable to buy green electricity, the Ministry of Economic Affairs is seeking solutions. Last month, it was reported that Taipower intended to become a major green electricity supplier, selling off its existing green electricity reserves. However, TSMC countered, stating, "The 20% green electricity we're talking about today, renewable energy, is 'additive.' What we buy from Taipower today doesn't count towards TSMC's 20%." "Additive" refers to renewable energy "added" beyond the existing grid capacity due to corporate purchases, a principle Apple requires its suppliers to adopt green electricity. Taking Taipower's green electricity platform as an example, simply transferring green electricity from Taipower's existing grid capacity to businesses doesn't constitute "additive" energy. While Apple achieved its goal of using 100% renewable energy in its global factories and offices by 2018, reducing its carbon footprint in manufacturing still requires supplier cooperation. This year, the number of manufacturers joining Apple's clean energy supply chain has increased from 23 to 44, including TSMC, Foxconn, Compal, Pegatron, Quanta, Wistron, and Chicony, all pledging to use renewable energy to manufacture Apple products. However, to explain Apple's green energy requirements, "locality" must be mentioned. [Image of Apple's new headquarters in Cupertino powered by 100% renewable energy, with some of the power coming from a 17MW rooftop solar system on the campus. Photo credit: Apple.] "Locality" and "externalization" determine Apple's green energy procurement direction. Apple defines clean energy as wind, solar, biogas fuel cells, and hydropower with lower environmental impact. Methods can include factory construction, power purchase agreements, direct investment, or purchasing vouchers, but must also consider "locality" and "externalization." Apple's 2019 Supply Chain Clean Energy Progress Report states that green electricity purchases must originate from the same province (state) or grid as the factory's location. This means that if a factory is located in Taiwan, it cannot purchase renewable energy certificates from the US or India to offset its energy consumption. Similarly, foreign companies setting up factories in Taiwan must purchase green electricity there. The 2019 progress report also reveals the market locations of suppliers committed to using 100% renewable energy. Foxconn listed Brazil, China, India, and the US; TSMC listed China and Taiwan. Of the 44 companies committed to clean energy and with markets in Taiwan, five are Taiwanese companies: TSMC and Lili Group. This explains why TSMC is more actively seeking green electricity in Taiwan than other Apple suppliers. Can Apple suppliers spanning multiple markets and committed to 100% renewable energy choose the cheapest green electricity from each market to offset their electricity consumption in other markets? Or must they purchase in each market according to a proportionality principle? Greenpeace Project Manager Li Zhian explained that no clearer standards were found in Apple's public documents. From the perspective of non-governmental oversight groups, it is reasonable for factories using electricity in Taiwan to purchase a corresponding proportion of renewable energy from Taiwan. This point requires supervision and attention from all sectors; otherwise, companies may gloss over it. (Chart source: Greenpeace's "2019 Taiwan Green Electronics Manufacturing Companies Ranking"). Li Zhian also emphasized that Greenpeace stresses that companies purchasing green electricity must have "additive" characteristics to increase market demand for green electricity and promote the development of renewable energy. However, does Taipower really not have any green electricity that meets the "additive" requirement? According to industry insiders, some have already signed feed-in contracts with Taipower, but the photovoltaic plants have not yet started construction. If these plants could terminate their contracts with Taipower, they might still meet Apple's "additive" requirement. In fact, both Apple and Google list "locality" and "additive" as conditions for purchasing green electricity. In 2017, Google's global energy policy head personally came to Taiwan to explain that Google's green electricity policy aims to "add" renewable energy to Taiwan, rather than using existing renewable energy. In 2019, Apple signed a contract for the yet-to-be-built Tainan Fishpond Photovoltaic project, demonstrating the meaning of "locality" and "external contribution." ※ Note 1: Based on the 2017 Supply Chain Clean Energy Progress Report. ※ Note 2: According to the 2019 Supply Chain Clean Energy Progress Report, Apple's suppliers in Taiwan who have committed to 100% renewable energy are: Corning Incorporated, DSM Engineering Plastics, Jabil, LEALEA Enterprise, and TSMC. Apple's clean energy encompasses four energy sources (solar, wind, low-impact hydropower, and biogas fuel cells). Source: Apple 2018 Environmental Responsibility Report. Source: Environmental Information Center (2019/08/08). This website is commissioned by the Green Little Giant Guidance Project of the Small and Medium Enterprise Administration, Ministry of Economic Affairs, and maintained by the Plastics Industry Technology Development Center. Visitor Count: 662,499. Contact Us
