Taipower: Absorbs Over NT$600 Billion in Generation Costs to Stabilize Prices and Curb Inflation

Amid concerns over Taipower's financial health, the company stated that following the Russia-Ukraine war, international fuel prices surged dramatically. To assist the government in stabilizing living costs and controlling inflation, Taipower has absorbed over NT$600 billion in electricity generation costs for residential and industrial consumers—this being the primary cause of its recent losses, unrelated to energy policy. The company continues to seek government support for financial improvement.

In a press release today, Taipower noted that the ongoing Middle East conflict involving the U.S. and Israel has triggered volatility in natural gas prices. Taipower has helped state-owned CPC Corporation absorb rising gas costs, bearing 50.92% of the price increase, which has necessitated increased external borrowing.

Taipower emphasized its ongoing efforts to expand power generation and grid infrastructure in line with Taiwan’s rapid economic development. However, these large-scale investments require substantial funding, and the company will continue seeking financial assistance from the government.

The American Chamber of Commerce in Taiwan highlighted 'Energy and Infrastructure Resilience' as a priority in its annual white paper, urging that reliable energy supply and grid resilience be treated as national security issues.

In response to the chamber’s concerns about power supply stability, Taipower explained that Taiwan’s robust economic growth—driven by AI and high-tech industries—has significantly increased electricity demand. In coordination with the government, Taipower continuously reviews power supply and demand. This year, four large gas-fired units—Hsingtao Units 2 and 3, and Taichung Units 1 and 2—will be commissioned sequentially, adding a total capacity of 5.2 million kilowatts. Combined with renewable energy, pumped hydro storage, and load management, this ensures stable power supply for both households and industries.

Regarding grid resilience, Taipower has launched the 'Grid Resilience Enhancement Plan,' based on three pillars: decentralization, reinforcement, and defense. By directly supplying power from power plants to industrial parks, high-tech industries receive stable electricity, while existing main power lines are reserved for civilian needs. This approach enhances civilian grid resilience and minimizes the impact of outages, preventing cascading failures.

Taipower stressed that stable electricity is a component of national security. All major power plants in Taiwan are designated critical infrastructure, with enhanced security personnel and regular defense drills to ensure the power system remains stable under various threats.