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Apart from the electricity generated by self-owned power plants, Taipower also purchases electricity from renewable energy generation systems, Independent Power Plants, and cogeneration systems. The origin and basis for each type of electricity purchase are explained below:
Renewable Energy
Renewable energy systems established after the implementation of the Renewable Energy Development Policy Act on July 8, 2009 are governed by the Act itself, its related sub-laws, and the Taiwan Power Company’s Guidelines for the Purchase of Renewable Energy Electricity. Under these regulations, Taiwan Power Company purchases electricity generated by renewable energy facilities, including surplus electricity from self-use renewable energy systems, to support and encourage the development and deployment of renewable energy by private enterprises.
Reservoir Power Plant
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.
Independent Power Plant (IPP)
Due to the public's environmental awareness raising, power supply development was hindered. From 1991 to 1996, The reserve capacity rate of the power system was only 4.2-7.4%, which was far lower than the reasonable reserve capacity rate of 20% . There were power outages and power rationing at that time. There were 40 power cuts in six years, which had a huge impact on the economy, society and people's livelihood. Due to the demand for electricity, the Ministry of Economic Affairs opened up private power plants that Taipower could not build in time to alleviate the pressure of power supply shortage.
| 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.
Cogeneration
To promote cogeneration systems that have a higher thermal efficiency of heat and electricity production and enhance energy utilization, the government enacted legislation in 1988 specifying various incentive measures. Taipower, under these regulations, purchases surplus electricity from cogeneration systems.
These power purchase agreements are implemented based on the "Cogeneration System Implementation Regulations" issued by the Ministry of Economic Affairs on September 4, 2002.