Introduction

Every day, Taipower is closely associated with the lives of Taiwan's 23 million people. The company is a cornerstone of modern life and a driver of economic development as both traditional and emerging high-tech industries are reliant on electricity. For decades, Taipower has provided sufficient electricity to support both the public's quality of life and the island's economic development. The company's transmission and distribution network can be accessed in every corner of Taiwan.

Review of the Development Process

In 1888, the Qing Dynasty's governor of Taiwan, Liu Ming-chuan, founded the "Xingshi Company" in Taipei. The company supplied lighting through a small, coal- fired, steam generator. Although the firm only lasted for a month, it was the start of the electricity industry in Taiwan.

During the Japanese era, a power plant was completed in Guishan in 1905. This was the beginning of hydropower generation in Taiwan. Development continued, leading to the establishment of the Taiwan Electric Power Co., Ltd. in 1919. Several major projects were completed during this period. The Sun Moon Lake hydropower project was completed and a transmission line was built in western Taiwan to connect the north of the island with the south. By 1944, the total installed power capacity of Taiwan had reached 321MW. After retrocession, the government committed itself to the further development of the electricity industry in Taiwan. The subsequent evolution of the industry can be divided into several periods:

1. Reconstruction (1945-1953) – Mainly based on hydro

During the Second World War, Taiwan's industry and infrastructure sustained serious damage. In the period immediately following the war, tremendous effort was committed to repairing and reconstructing the island's economy and infrastructural capacity. During the period, the Taipower Company was established on May 1, 1946. By 1953, the installed capacity had reached 363 MW and was composed of primarily of hydro (93.7%) and thermal (6.3%) power generation. The power system had entered a period of being "mainly based on hydro."

2. Expansion (1954-1965) – Placing equal stress on hydro and thermal

In 1962, thermal power generation had proportionally exceeded hydro power. This marked the beginning of a period of "placing equal stress on hydro and thermal" power.

3. Highly-Developed (1966-1974) – Mainly based on thermal, partially based on hydro

Following the mid-1960s, Taiwan’s industry quickly blossomed and power consumption increased sharply. The Taipower Company developed a large-capacity through high- efficiency thermal power. The power system had entered a period of "mainly based on thermal, partially based on hydro." In terms of power transmission and substation systems, a 345 kV ultra-high voltage transmission line with a total length of 330 circuit kms was completed to improve transmission capacity and stabilize the power supply.

4. Nuclear Power (1975-1985) – Energy diversification

During the 1970’s a series of oil crisis significantly increased the cost of fuel. In response, the government's energy policy shifted, in 1974 and again in 1980, to a focus on diversified sources of power generation. In particular, nuclear power generation was promoted, and three nuclear power plants were completed by 1985. During this period, the installed capacity reached 5144 MW. With the addition of both nuclear power plants and more large-capacity, high-efficiency thermal power units the power system entered a period of "energy diversification."

5. Balancing Power Supply and Demand (1986-1993) – Demand side management

As economic growth continued, Taipower increasing faced a diminishing reserve capacity. This led to a period (1986 - 1990) of building large-scale, thermal and hydro plants, implementing time of use rates, interruptible power and energy conservation, and encouraging cogeneration. In order to balance power supply and demand, the power system entered a period of "demand side management".

6. Open Power Generation (1994-2006) – Opening power generation to private enterprises

Since the 1990s, liberalization of the electric industry has gradually become a global trend. During this period, Taiwan had both a high population density and continued rapid growth of power consumption and development. In following global trends, the government permitted the construction of private power plants in order to accelerate power development. As such, Taiwan’s power generation market had entered a period of "open power generation."

7. Energy Conservation and Carbon Reduction (2007-Present)

 Since 2006, international fossil fuel prices have risen rapidly. This has seriously affected the power industry. Taiwan is primarily an importer of fuel, and in order to ensure the sustainable development of its power industry, a new strategy was required. As a result, low-carbon power is being developed on the supply side, while energy conservation and electricity efficiency is being promoted on the demand side. Taiwan's electricity market has now entered a period of "energy conservation and carbon reduction."

Future Prospects

As a state-owned enterprise, Taipower must provide reliable power and be eco-friendly while implementing national energy policies that meet business and household needs. To achieve these requirements, Taipower manages the development of green energy, the reduction of carbon emissions and the saving of energy while ensuring sustainability in line with recent amendments to Electricity Act. This means that in the future, the company will not only serve as a power provider, but will also have a variety of other responsibilities.

To face these multiple challenges, Taipower is gradually strengthening its capabilities in different fields. It is also seeking to assume key roles in the energy industry by serving as a provider of high-quality power services, integrating energy networks, promoting the adoption of smart living, acting as an agent of environmental friendliness, and practicing corporate social responsibility. The main points involved in each of these roles are as follows:

Provider of High-Quality Power Services

1. Build a stable and efficient power supply system to enhance supply reliability
2. Strengthen customer relationship management and improve the level of customer satisfaction
3. Improve system and data transmission through the construction of an optical fiber network that will accelerate system response capabilities
4. Strengthen asset management through the utilization of Internet of Things (IoT) Architecture and big data analytics
5. Build a smart grid that features self-monitoring, diagnosis, protection, and recovery functions

Integrator of Energy Networks

1. Integrate smart energy resource networks and transaction platforms to effectively balance energy supply and demand
2. Strengthen partnerships between development, engineering, operations management, IPPs, and supply chains for various types of power resources
3. Ensure the security of the fuel supply, enhance coal procurement performance, and transition toward a natural gas supply
4. Enhance power generation efficiency and construct business models for energy resource recycling
5. Deploy distributed power generation and energy storage systems and implement demand-side management through smart grids
6. Promote corporate transformation and establish a global energy conglomerate whose core competitive advantage is its energy network

Adopter of Smart Living

1. Satisfy customers' diverse electricity needs by making use of new technologies to provide positive and personalized services
2. Combine the smart grid with smart home appliances and buildings to enhance convenience and the quality of life for the general public
3. Use smart meters and big data to understand customer behavior in electricity consumption; provide value-added services so that customers can apply smart technology when using electricity, thus achieving energy conservation and carbon reduction
4. Combine smart family energy management systems with various approaches to demand-side electricity management and increase the effectiveness of electricity consumption

Agent of Environmental Friendliness

1. Develop renewable energy and improve the safety of grid connections for renewable energy
2. Establish an attitude of sustainability and attach importance to ecological conservation to implement environmentally friendly policies
3. Increase the share of low-carbon power generation and dedicate ourselves to the reduction of carbon consumption and emissions, thereby gradually transforming into a green enterprise
4. Encourage energy conservation and promote electricity consumption efficiency
5. Strengthen the security of nuclear power plant decommissioning and the final disposal of spent nuclear fuel & low-level radioactive waste

Practitioner of Corporate Social Responsibility

1. Emphasize corporate governance and the shaping of corporate ethics
2. Promote corporate humanistic culture, deepen social care, and create a community of co-prosperity
3. Establish a proactive, mutually caring, and discipline-oriented industrial safety culture
4. Establish diverse communication channels to build trust and develop win-win relationships between Taipower and the general public

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