The Category and Basis of Power Purchase
07/11/22
Apart from self-owned generating units, Taipower purchases power from renewable energy, IPPs and cogeneration. The following descriptions are the cause of different types of power purchase.
Renewable Energy
Taipower has adequately operated in conjunction with the government’s promotion of renewable energy development policy. The electricity generated by renewable energy power generation facilities or the surplus electricity from self-use power generation facilities is wholesale purchased by Taipower.
Following the policy of developing and utilizing water resources, Taipower has purchased power from the hydroelectric generating unit attached to water conservancy facilities established by the government and Department of Irrigation and Engineering since 1968.
Taipower adheres to Renewable Energy Development Act, pertinent sub-laws and Operation Directions of Renewable Energy Procurement of Taiwan Power Company to execute the power purchase process of those renewable energy equipment established after Renewable Energy Development Act took effect on July 8, 2009.
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.
Reserve Capacity Ratio and Times of Power Rationing From 1991 to 2001
| Year |
1991 |
1992 |
1993 |
1994 |
1995 |
1996 |
1997 |
1998 |
1999 |
2000 |
2001 |
| Reserve Capacity Ratio |
4.8 |
6.7 |
4.2 |
4.8 |
4.7 |
5.6 |
11.0 |
7.7 |
12.5 |
12.6 |
13.2 |
| Times of Power Rationing |
14 |
2 |
4 |
16 |
3 |
1 |
0 |
0 |
3 |
0 |
0 |
Remark：1999 Jiji earthquake resulted in power rationing.
"Operation Directions for a Deregulated Power Supply Industry" was promulgated by MOEA on Sep. 3, 1994. "Application Information for Power Plant Construction" of phaseⅠandⅡderegulating private power plants was promulgated on Jan. 1 and Aug. 25,1995.
"Deregulating Private Power Plant Solution" of phase Ⅲ was promulgated by MOEA on Jan. 21, 1999.
"Deregulating Private Power Plant Solution" of phase Ⅳ was promulgated by MOEA on Jun. 6, 2006.
After the amendment of the Electricity Act on January 26, 2017, Taipower procurement case is handled in accordance with the Government Procurement Law.
Deregulating Private Power Plant Solution
| Phase |
Announce
Date |
Standard of
Capacity Margin |
Permitted
Capacity (MW) |
Permitted
Fuel |
Purchasing
Price |
Bidding
Situation |
| Ⅰ |
Jan. 1,1995 |
20% |
7,260 |
Coal
Oil
LNG |
comparison
of
tariff pricing |
Qualified:16
Selected:7
Contracted:4
Operating:4 |
| Ⅱ |
Aug. 25,1995 |
20% |
3,000 |
Coal
Oil
LNG |
comparison
of
tariff pricing |
Qualified:19
Selected:4
Contracted:3
Operating:1 |
| Ⅲ |
Jan. 21,1999 |
20% |
2,340 |
LNG |
announced
prices |
Qualified:9
Selected:5
Contracted:5
Operating:4 |
| Ⅳ |
Jun. 6,2006 |
16% |
1,980 |
Coal
Oil
LNG |
comparison
of
tariff pricing |
Qualified:8
Selected:0 |
Cogeneration
There were various incentives legislated by the Government in 1988 to encourage the energy user to install cogeneration equipment because the cogeneration system is considered an efficient way to increase in the thermal dissipation and total thermal ratio of the productive process. Taipower purchased the surplus electricity from cogeneration in accordance with the regulation.
According to "The Regulation of Cogeneration" issued on September 4, 2002 by Ministry of Economic Affairs, Taiwan Power Company is requested to abide by the regulations to purchase the surplus electricity.