Taiwan Power Company incurs losses from purchasing wind power? Ministry of Economic Affairs: The main reason is the cost pressure caused by rising fuel prices.
- byVic

讀後心得
The Ministry of Economic Affairs stated that Taiwan Power Company's losses are mainly due to the rise in international fuel prices and are not directly related to the development of offshore wind energy. The Ministry clarified that the report's estimate of a loss of 910 billion TWD based on an unrealized electricity price of 2.5 TWD is a misinterpretation. Taiwan has completed seven offshore wind farms and is expected to add 1,783 MW of grid capacity by 2024, making it one of the leaders in global offshore wind energy. The Energy Agency emphasized that Taiwan's promotion of green energy policies aligns with international trends, and the adjustment in electricity prices is a measure to respond to rising international fuel costs.
Regarding media reports that Taipower's losses are due to the acquisition of offshore wind power, the Ministry of Economic Affairs stated that the main reason for Taipower's losses is the rising international fuel prices in recent years, which have imposed significant fuel cost pressures, and are not directly related to the development of offshore wind power. The report incorrectly interprets the pricing based on an unprecedented 2.5 NTD per kilowatt-hour that has never been practically acquired.
The Energy Administration of the Ministry of Economic Affairs issued a press release today to clarify that Taiwan's promotion of offshore wind power draws from the experiences of mature countries such as the UK and Germany, which first conduct feed-in tariffs before transitioning to a competitive bidding system. The report again erroneously calculates the so-called 910 billion NTD using the rare and never practically acquired pricing of 2.5 NTD, which is indeed a misinterpretation.
The Energy Administration emphasized that the offshore wind power market has matured, and the block development phase has shifted to contracts for the purchase and sale of electricity (CPPA) between the purchasing parties and the offshore wind farms, no longer involving Taipower’s feed-in tariff. This does not relate to Taipower's financial issues. Furthermore, the economic minister's proposal for a green energy plan in the Philippines has sparked discussion. The Energy Administration explained that the generation costs between Taiwan and the Philippines differ due to factors such as land costs and generation hours, and cannot be directly compared. Additionally, the target price for transporting offshore green electricity back to Taiwan is 4 NTD per kilowatt-hour; this means purchases will only occur below 4 NTD to meet domestic corporate demands without affecting domestic electricity prices.
In terms of offshore wind installation, the Energy Administration stated that Taiwan has currently completed 7 offshore wind farms, with a total of 374 wind turbines installed and a grid capacity of 3.04 GW. According to reports, Taiwan's single-year grid addition in 2024 could reach 1783 MW, ranking first in the world, excluding China. Taiwan has become one of the leaders in offshore wind power among democratic countries worldwide. According to statistics from the Global Wind Energy Council, Taiwan ranks seventh internationally in the volume of offshore wind installations for 2023.
Finally, the Energy Administration reiterated that Taiwan's promotion of diversified green energy and deep energy-saving policies aligns with international mainstream trends, and that past electricity price increases were due to significant rises in international fuel prices, aimed at effectively alleviating domestic inflation pressures. In consideration of people's livelihoods, electricity prices could not fully reflect the costs.