Stabilizing Prices, Curbing Inflation: Taipower Absorbs Over 600 Billion NT Dollars in Generation Costs

Taiwan Power Company (Taipower) has absorbed over 600 billion New Taiwan dollars in electricity costs since the escalation of international conflicts, primarily due to soaring global fuel prices following the Russia-Ukraine and Israel-Iran wars. This significant financial burden is cited as the main reason for the company's recent losses.

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Taipower undertakes the policy mission of caring for the public and stabilizing prices. Since the Russia-Ukraine war and the Israel-Iran war, international fuel prices have soared. Taipower has cumulatively absorbed over 600 billion NT dollars in costs for public and industrial electricity use, which is the main reason for Taipower's losses in recent years, and is unrelated to energy policy.

Taipower clarified that these financial challenges stem from its policy mandate to support the public and stabilize prices, rather than from energy policy itself. The company highlighted its role in helping CPC Corporation absorb natural gas cost increases, covering 50.92% of the price hikes, which necessitated increased external borrowing. Taipower is actively seeking government assistance to improve its financial standing.

Responding to concerns about power supply stability, particularly from the American Chamber of Commerce, Taipower emphasized its commitment to ensuring reliable electricity for both public and industrial use. With economic growth, especially driven by AI and high-tech sectors, electricity demand is rising. To meet this, Taipower is commissioning four large gas-fired units this year, adding 5.2 million kilowatts of capacity, and employing diverse dispatch measures including renewable energy and load management.

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Taipower is continuously planning to expand power source development and grid construction in line with Taiwan's rapid economic development. However, large-scale investments in power construction all require financial support. Taipower will continue to seek financial improvement assistance from the government.

The company is also advancing its "Grid Resilience Enhancement Project." This initiative focuses on three main strategies: decentralization, strengthening, and defense. By directly supplying power to industrial parks, Taipower aims to secure stable electricity for high-tech industries while reserving existing power grids for public needs. This approach is expected to enhance the resilience of public power supply and minimize the impact of any potential outages.

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Taiwan's economy is booming, and AI and high-tech industries are driving significant growth in electricity consumption. Taipower is continuously reviewing power supply and demand in line with government policy.

Furthermore, Taipower stressed that power stability is integral to national security. Key power plants are designated as critical infrastructure, with enhanced security personnel and regular drills conducted to ensure the system's resilience against various threats. The company assures the public and industries that electricity supply will remain secure and stable.

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The 'Grid Resilience Enhancement Project' adopts 'decentralization, strengthening, and defense' as its three main pillars.