Taiwan-based solar firms have been facing difficulties investing in international solar projects due to complexities such as local power companies, political atmosphere, and cultural habits.
Solar makers noted that compared to selling products to the international market, developing solar PV system projects in another country is relatively difficult.
Take Thailand for example, many Taiwan- and China-based companies have failed to succeed in developing projects despite having good relationships with the local authorities, solar makers commented. Building solar power plants is likely to stir up problems such as land ownership and political conflicts between parties. Sometimes plants are completed but problems arise during grid connection.
Taiwan-based firms stated that firms cannot perform precise calculations of the internal rate of return (IRR) for projects in complex regions because unknown problems will occur and there will be extra costs. The invisible costs will erode the IRR. Hence it is easier to leave license applications and ownership to local firms while international firms provide products and services.
