Taiwan Today

Taiwan’s power generation sector is moving toward a balanced future on the back of nationwide restructuring initiatives.

The nation’s first ultra-supercritical coal-fired generator sprang to life at New Taipei City’s Linkou Power Plant in October 2016. Installation of the new piece of equipment was the first step in ongoing efforts to replace the plant’s pair of decades-old generators, each with a capacity of 300 megawatts, with three much more advanced models. Ultra-supercritical units operate at higher temperatures and pressures than normal generators and can be up to 45 percent more efficient. The two other new generators are scheduled to begin operations in April this year and 2019, respectively. The upgrades will increase the plant’s total capacity to 2.4 gigawatts while lowering emissions due to reduced coal consumption per kilowatt-hour.

According to Chu Wen-chen (朱文成‬), chairman of state-run utility Taiwan Power Co. (Taipower), “the generators perform very much like they’re burning natural gas,” which is one of the cleanest fossil fuels.

The upgrades at the Linkou facility are exemplary of initiatives being crafted and implemented throughout the nation to gradually change how Taiwan generates the electricity that powers its homes and industries. Currently, power stations running on fossil fuels produce approximately 80 percent of the nation’s energy. As part of efforts to transform Taiwan into a low-carbon society, the government aims to decrease the ratio of electricity generated via the burning of coal from today’s 35.7 percent to 30 percent by 2025. The proportion of power produced by natural gas-fired plants is slated to increase from 35.1 percent to 50 percent in the same time frame, while oil-burning facilities will largely be phased out.

The remaining 20 percent will be provided by biomass, hydro, solar and wind power resources, which now account for roughly 4 percent of the national supply, as well as new renewable energy sources such as geothermal, according to the chairman.

A Responsible Balance

Roughly 16 percent of Taiwan’s electricity is produced by the nation’s three active nuclear power plants. Construction on a fourth facility was halted in 2014 due to growing public concerns over the safety of atomic power. The administration of President Tsai Ing-wen (蔡英文) has set a goal of completely halting the use of nuclear energy by 2025, in line with Article 23 of the Basic Environment Act, noted Lin Chuan-neng (林全能), director-general of the Bureau of Energy (BOE) under the Ministry of Economic Affairs.

The legislation, promulgated in 2002, stipulates that “The government shall establish plans to gradually achieve the goal of becoming a nuclear-free country.” For Lin, those plans include achieving a balanced mix of traditional and renewable energy sources so as to ensure stable supply on the one hand and reduced emissions on the other.

In order to expand the nation’s use of natural gas, a third liquefied natural gas receiving terminal is slated to be built by state-run energy supplier CPC Corporation, Taiwan. It will be situated at the coastal Guantang Industrial Park in the northern city of Taoyuan near the Datan Power Plant, the largest gas-fired power station in the country.

“Traditional energy sources must be used in the most efficient way possible,” Lin said. For instance, three advanced combined-cycle turbines, each with a capacity of 892.6 MW, are being installed at the gas-fired Tongxiao Power Plant in central Taiwan’s Miaoli County, with the first scheduled to begin commercial operations in July this year. Combined-cycle units create more power than standard generators by utilizing both natural gas as well as steam produced from the system’s exhaust.

The government is also placing “a greater emphasis on the demand side by, for example, working to reduce the peak load,” Lin added. Among Taipower’s measures to cut power consumption during peak times is a program that will involve members of the general public who, if interested, can have a smart meter installed in their homes to gather consumption data. Participants will be given discounts on their power bills, and the information gathered will be used to build an advanced metering infrastructure.

The BOE plans to begin installing the meters in July and 200,000 units are expected to be in place across the country by the end of 2018. The number will increase rapidly to 800,000 by the next year “and eventually total three million by 2024, covering nearly 80 percent of the nation’s electricity consumption,” Lin said. Such a project is crucial to setting up a smart grid, which automatically makes adjustments to energy production and distribution based on a variety of factors.

Smart grids are important for efficient energy management, particularly given the intermittency issues faced by many renewables such as solar and wind power. Intermittency is the time during which resources are not available, like when solar panels sit idle at night. “Such systems require advanced energy storage capabilities with traditional generation methods on standby to give timely support,” Chu said.

One such method of storage is pumped hydro, whereby water from a reservoir is used to power generators during peak periods. When there is less demand, water is pumped back up to the reservoir. Taiwan currently has two such facilities—with a combined capacity of 2.6 GW—at Sun Moon Lake in central Taiwan’s Nantou County, and Taipower is considering building a third.

Batteries serve as another important power storage method, though their capacity and efficiency have significant room for improvement. According to Lin, the government expects technological breakthroughs in this sector to be achieved at the Shalun Green Energy Science City in southern Taiwan’s Tainan City. The park, which was launched in November last year, will integrate research, application and talent cultivation efforts, he said.

“The BOE is also working to help develop new technologies for energy management companies to boost the efficient use of electricity,” Lin noted.

Liberalizing the Market

Unlike efforts to improve generation and storage technology, modifying energy laws and regulations is a contentious matter. The central issue faced by lawmakers is market liberalization.

For decades, Taipower has dominated the domestic electricity sector, possessing decisive control over generation, transmission and distribution. Amendments to the Electricity Act, now under review in the Legislature, aim to dismantle the company’s monopoly and pave the way for multiple suppliers, fair use of transmission networks and free choice for consumers.

The proposed revisions would allow renewable energy businesses to produce, sell and send electricity to clients, creating an environment conducive to green energy development, according to Lin. Taipower would remain the primary power provider for a time, with the firm gradually being reorganized into two separate companies responsible for generating and distributing electricity, respectively.

There are those, however, such as pro-reform activist Gao Ru-ping (高茹萍), who have serious concerns about the liberalization process. Gao, who chairs the Taiwan Renewable Energy Alliance (TRENA), said there cannot be a truly open market if Taipower continues to control the electricity transmission systems across the country, which seems likely for the foreseeable future. Comparing the systems to transportation networks, Gao said even if cars can be built freely, it is Taipower that decides which ones can use the highways.

Established in mid-2015 in Taipei City, the TRENA comprises members from academia as well as the business and civil sectors. The organization’s goal is to promote greater energy self-sufficiency in Taiwan, which currently imports 98 percent of its energy sources. “This is a national security problem,” Gao said, “and those imports account for 15 percent of our gross domestic product, eating away at our economic growth results.”

A longtime anti-nuclear activist, Gao believes renewable energy will be a major force behind the next industrial revolution. Renewables open a window of great opportunity for many people, she said. For example, rural areas will benefit from setting up solar arrays on otherwise unusable land. “If attempts to boost the agricultural sector are not enough, then perhaps the development of green energy can help trigger a new community renaissance in Taiwan.” 

Write to Pat Gao at cjkao@mofa.gov.tw