■ Promoting Low-Carbon/Non-Carbon Power Generation Projects

●Best Available Techniques for Thermal Unit Retrofit New/Project

The on-going retrofit projects in the Shenao,Linkou, and Talin Thermal Power Plants and Changgong New Project will be installed with supercritical coal-fired units, with each unit’s efficiency reaching 44.5% (LHV, gross) after replacing the existing ones. Taking the Linkou Thermal Unit 800 MW as an example, the CO 2 emission intensity will decrease by 10% after its retrofit project is completed.

● Increase of Renewable Energy

The purchase and development of renewable energy will continue. It is estimated that the installed capacity will reach 2,960 MW in 2012.

● Proper Expansion of Gas-Fired Units

In the Tunghsiao Thermal Power Plant Retrofit Project (approved by the government in 2010), Taiower plans to replace the existing 3 units with 4 new gas-fired combined-cycle units, 700 MW each. Each unit’s generation efficiency will reach as high as 58.2% (LHV-ISO). When the project is completed in 2018, the ratio of gas-fired capacity will reach 34.2%.

● Evaluation on Reasonable Utilization of Nuclear Power Generation

In addition to accelerating the construction of the Fourth Nuclear Powr Plant for its commercial operation, based on the nation’s “Guidelines for Sustainable Energy Policy”, Taipower has listed nuclear power generation as an option for non-carbon energy development. In June 2010, Taipower submitted a report on “Preliminary Evaluation and Planning for Long-Term Nuclear Power Use” to the government as a reference for the review of domestic nuclear development policy. In addition, a feasibility study on the expansion of nuclear units was conducted. This can serve as a basis for the government to review and consider the nuclear unit expansion project.

■ Implementing Environmental Protection Improvement Projects

● Hsinta Thermal Power Plant Units 1&2 Air Pollution Improvement Project

Hsinta Thermal Power Plant Units 1&2 Air Pollution Improvement Project includes boiler retrofit, coal miller modification, APH renewal, I.D. fan renewal and new SCR installation, and retrofit of the existing FGD and ESP. The completion date is set for at the end of 2012. After the completion of this Project, the SO X and NO X emissions will be reduced, and the air quality of southern Taiwan will be improved. At the end of December 2010, the project was 84.06% complete.

● Taichung Thermal Power Plant 2nd Stage Ash-Pond Project

In response to the long-term operating demand of the Taichung Thermal Power Plant, a project to embank an ash-pond in the southwest side of Taichung Harbor was planned. It will cover an area of about 73 hectares and can be used until 2041. The project is scheduled to be completed in December 2016. At the end of December 2010, the project was 0.5% complete.

■ Management and Promotion of Energy Conservation

Starting from inside the company, Taipower established a “Taipower Energy Conservation Promotion Task Force” and stipulated the “Guidelines for Energy Conservation Evaluation” to conduct monthly follow- up checks and reviews. An “Energy Conservation Billboard” was also established to praise and encourage the units with outstanding performance.

Taipower strengthened external energy conservation campaigns through various channels: Internet, school activities, communities, mother’s classrooms, energy conservation seminars, etc. Energy conservation teams were established to periodically visit and provide consulting services to large customers for energy conservation and usage of high-efficiency products. A large- scale energy conservation seminar is held annually. An energy conservation exhibition hall has been set up in some branches to promote reasonable energy consumption and conservation methods.

To further promote energy conservation and carbon reduction, Taipower started an "Energy Conservation Competitions" campaign among the local governments on July 1, 2010. In addition to a basic discount of 5-20%, the households, primary and junior high schools of the counties and cities who won the top 3 places of good energy conservation performance were entitled to have another 5-15% competition discount according to their rankings.

■ Monitoring Nuclear Power Plant Radiation Levels

The natural background radiation level in Taiwan is between 1.6 -2.0 mSv. Annual public dose limit is legally set at 1.0 mSv. over the last 10 years, the public dose due to the three nuclear power plants has been less than 0.0015 mSv, lower than 1% of the limit level designed by the nuclear power plants and also only 0.1% of Taiwan’s natural background level, which poses almost zero-impact on the environment.