Develop cleaner energies:
a) Liquefied Natural Gas (LNG)
Taiwan started importing Liquefied Natural Gas in 1990 and since then imports have been multiplied by 5. Its main use if for electricity generation (75%). The technology is not as carbon efficient as nuclear, is more expensive and poses the problem of reliable sources of supply as Taiwan had problems importing from Indonesia a couple of years ago. However, this is maybe the only available alternative to replace nuclear that wouldn’t significantly threaten the diversification of supply, and as such DPP is promoting it as part of its Nuclear-Free Island Policy, while Taipower itself is making efforts to increase the capacity.
b) Renewable Energy
KMT has passed a law in the early 2000’s that seeks to boost the use of clean energy like wind and hydropower. The share of those energy should rise to around xx% by 20xx
Liberation of the Energy Market
As of 2005, the Energy market has been liberalized in Taiwan, which means that Taipower is not the only energy generator anymore -actually, there are now 8 other companies (or IPPs) generating about ¼ of the total energy in Taiwan. It is not clear to me what this is supposed to achieve and whether those companies can induce some healthy competition on the market.
Phasing out of Nuclear?
Unlike what many people could think, as per Taipower’s sustainability reports in 2011 and 2012, the company wants to reduce the country’s dependency to nuclear and move the overall part of nuclear generation capacity from 8% of the total to 4% in 2025. Phasing out is not officially mentioned, but if its share constantly declines, why not think about a phase out?
Taipower Risk Paradigm
as a summary, I add this document taken from the 2012 sustainability report that shows the risks Taipower see are most likely to occur and how important they are. I feel that this reflects my own findings when I checked the data, ie:
- failure to reflect rising fuel costs on the end-price to customers
- delays in the construction of new facility, especially Longmen
are the main problems the company will face.
But you can note that risks linked to employees injuries and protests are rather high as well, I don’t know to which facts this is pointing out, if it is the same low wage problem common in Taiwan or something else. Statistics otherwise show that over the last few years, the numbers of accidents in service has been higher that Taipower’s self imposed targets. My assumption is that some specific works like repairing lines after typhoons, working on nuclear facilities, etc. are highly dangerous and thus require special care from the management.