Global warming has made energy conservation a significant issue which the global power industry must confront. Due to soaring international fuel prices, the cost for power generation has kept rising. This has caused great pressure in the management of the power industry. The company should make timely adjustments in its development direction and management strategies and adopt necessary measures to deal with this issue. The company strengthened and improved internal management through the Management by Objective (MBO) system as a measure to enhance its overall operation efficiency.   

    For our future development paradigm, Taipower will do its utmost to pride itself as ①a leader for low-carbon power generation; ②a high-efficiency power operator; ③a smart grid builder; ④a high-quality power provider and ⑤a practitioner of corporate social responsibility to become the most trusted and indispensable partner of the people.

For management strategies, the company adopted the SWOT (strength, weakness, opportunity, threat) analysis and applied the spirit of the Balanced Scorecard to establish four perspectives－finance, customer, internal process, learning and growth, to formulate 11 overall strategies: ①upgrading productivity; ②improving financial performance; ③enhancing power supply quality; ④fulfilling corporate social responsibility; ⑤improving energy source mixture; ⑥developing low-carbon energy sources; ⑦promoting smart power grid; ⑧establishing sustainable environment; ⑨confronting liberalization challenges; ⑩cultivating core manpower; and ⑪strengthening innovation and application of technology, and setting up measuring indexes, various implementation strategies and action plans to formulate the company's future important work direction.     

For management goals, the company made reference to the company's vision, management strategies and major business directions, and the important points of the government's policies and evaluation and adopted the four-perspective spirit of the Balanced Scorecard to establish various management goals to be implemented through the Responsibility Center System. In 2010, the 17 major management goals were: ①financial structure improvement; ②customer satisfaction; ③power supply stability; ④base-load capability improvement and regional power supply balance; ⑤power supply quality enhancement, control of the expenses of ⑥operation and maintenance; ⑦power purchase and ⑧fuel purchase; ⑨energy management; ⑩industrial safety; ⑪nuclear safety; ⑫environmental protection; ⑬renewable energy development; ⑭generation units operation; ⑮energy conservation promotion; ⑯innovation; and ⑰R&D.

To cope with the fluctuation of international fuel prices, the following major fuel procurement strategies were adopted:

• Steam Coal and Shipping

  ①Diversifying supply sources to ensure the supply security; ②Optimizing supply security and economics; ③Purchasing directly with coal mine owners, producers or the wholly-owned sales company of owners or producers for term contracts; ④Maintaining proper ratio of spot market procurement; ⑤Enlarging the size of coal vessels and adopting the best dispatch measures; ⑥Enhancing competition in the tendering process; ⑦Entering the market at the appropriate time and ⑧Exercising buyer's option under the term contracts to flexibly adjust the delivery quality.

• Fuel Oil

  ①Strengthening domestic bidding competitions; ②Consolidating the diesel purchase oil into one single contract; ③Relaxing the quality specification for imported fuel oil and ④Monitoring closely fuel oil requirements to avoid unexpected need for importation.

• Natural Gas

  Monitoring closely domestic load demand to purchase the required amount in timely fashion.

• Nuclear Fuel

  ①Monitoring uranium market status to flexibly adjust the timing and quantity for uranium spot purchase. ②Applying flexible delivery quantity under term contracts for uranium and other nuclear fuel processing services. ③Optimizing tail assay of the enriched uranium. ④Pursuing reasonable ceiling prices under uranium term contracts.

  The promotion for new business development is based on the strategy of “extending core business, reinforcing flexible use of assets, entering into power-related businesses”.

  At present, Taipower is engaging in the following businesses: ①development and operation of Australia's Bengalla Coal Mine; ②personnel training services; ③land development; ④property management (leasing lands for parking lots, renting out spaces for advertisement, and renting out houses); ⑤operation and maintenance of power plant services; ⑥instrument and test equipment calibration services, etc. Taipower reinvested businesses include ①Taiwan Stock Exchange Corporation; ②Taiwan Cogeneration Corporation; ③United Asia Electric Company; ④Bengalla Coal Mine Corporation; ⑤Bengalla Agriculture Corporation; and ⑥Bengalla Sales Corporation, of Australia.

  In addition, for stabilizing coal supply and raising the ratio of shipment by Taipower-owned coal vessels, Taipower placed an order to construct four additional vessels, each with 9.3 tons in DWT. They will be delivered in each quarter in 2011, respectively.

  Furthermore, the company is presently considering the establishment of new businesses including educational recreation, advertisement, recycling of coal ashes, etc. This planning is done in the hope that the company's diversification promotion task can blossom and bear fruit in the near future.