The Diversity of Power Purchase

Taipower signed different contracts with different operators considering the characteristics of power generation equipment. The following descriptions are the ways of power purchase:

Reservoir Power Plant

Unable to cooperate with the electric power grid to dispatch power, power generation from reservoir power plant adjusts depending on hydrological conditions and the water-consuming habits. Therefore, the power supply is unstable and unreliable.

Cogeneration

The cogeneration plant generates electricity and thermal during the production process. The electricity is mainly consumed by itself, and its surplus electricity is purchased by Taipower. Cogeneration is not a stable and reliable source of electricity because the generation mainly depends on the operation of the generator instead of the dispatch of power.

Independent Power Plant (IPP)

IPPs specialize in power generation and sales, thus, except for internal consumption, the power generated from their plants should be sold to Taipower completely. Besides, the contract must be drawn up based on the supply and demand situation of the power system. There is a penalty, if they fail to abide by the dispatching and operating contract. IPPs are a stable and reliable source of power.

Renewable Energy

To utilize the energy in an efficient way, the government encourages private operators to establish renewable power plants such as wind and solar. Taipower was requested to purchase the electricity generated by renewable energy generation facilities at the wholesale purchase rate stipulated by the central competent authority. It’s not a stable source of power supply because power generation from wind and solar is mainly affected by the weather rather than operating depending on the supply and demand of power system timely.