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2025-04-20

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Taiwan Power's wind power investment losses? The Ministry of Economic Affairs pointed out that the main reason is the significant pressure from rising fuel costs.

Taiwan Power's wind power investment losses? The Ministry of Economic Affairs pointed out that the main reason is the significant pressure from rising fuel costs.
讀後心得
The Ministry of Economic Affairs clarified media reports regarding the reasons for Taipower's losses, pointing out that the losses are primarily due to rising international fuel prices and are not directly related to offshore wind power. The reports mistakenly used an electricity price of 2.5 NT dollars that was not based on actual transactions for calculations. It emphasized that Taiwan's offshore wind power development has matured and will transition to a power purchase agreement system. The Energy Administration stated that Taiwan has built seven offshore wind farms with a grid-connected capacity of 3.04 GW, and an additional 1,783 MW will be added in 2024, making it one of the world leaders in this sector. Finally, the Energy Administration emphasized that promoting green energy and energy-saving policies is in line with international trends, and the past electricity price increases were necessary measures to cope with the rise in international fuel prices.

Regarding media reports linking Taipower's losses to the acquisition of offshore wind power, the Ministry of Economic Affairs stated that Taipower's losses are primarily due to rising international fuel prices in recent years, which have resulted in significant fuel cost pressure, and are not directly related to the development of offshore wind power. The calculation method mentioned in the reports, which once reached 2.5 NTD, is a complete misinterpretation.

The Energy Administration issued a press release clarifying that Taiwan's approach to promoting offshore wind power is based on practices from mature countries such as the UK and Germany, where a feed-in tariff is implemented first, followed by a competitive bidding system. The calculation method cited in the reports again references the previous mention of 2.5 NTD, and the assertion regarding 910 billion NTD is also a misinterpretation.

The Energy Administration emphasized that the offshore wind power market has already matured, and the development phase has shifted to a system where the purchasing party and the offshore wind farm sign a Power Purchase and Sale Agreement (CPPA), instead of Taipower making the initial purchase, which does not involve Taipower's financial issues.

Additionally, the green energy plan proposed by the Minister of Economic Affairs has sparked discussions. The Energy Administration stated that due to differences in land costs and power generation hours, there are disparities in generation costs between Taiwan and the Philippines, making direct comparisons inappropriate. The target price for transmitting offshore green energy back to Taiwan is set at 4 NTD per kWh, and procurement will only occur if the price is below 4 NTD, to meet the needs of domestic businesses without affecting domestic electricity prices.

In terms of offshore wind power installation, the Energy Administration noted that Taiwan has completed the construction of seven offshore wind farms to date, with a total of 374 wind turbines installed and a grid-connected capacity of 3.04 GW. According to reports, Taiwan's new grid-connected capacity in 2024 is expected to reach 1,783 MW, ranking first in the world outside of China, and has become one of the leaders in offshore wind power among democratic countries.

According to statistics from the Global Wind Energy Council, Taiwan ranked seventh internationally for offshore wind power installation in 2023. The Energy Administration reiterated that Taiwan's promotion of diverse green energy and deep energy-saving policies aligns with international mainstream trends. The past increases in electricity prices were a response to rising international fuel prices and have effectively alleviated domestic inflation pressures, aiming to do so without impacting people's livelihoods, and do not fully reflect the electricity prices.