Taiwan’s national power utility, Taiwan Power Co. (Taipower), reported losses of NT$198.5 billion (US$6.34 billion) for 2023, slightly less than the NT$267.5 billion (US$8.48 billion) in losses it reported for 2022. The company is also forecasting NT$188.7 billion (US$6 billion) in losses for 2024.
The massive shortfalls have raised major concerns that Taiwan can remain competitive in high-tech industries or reach its green energy goals. Taipower says that less than 10% of its energy supply comes from green energy sources, while about 78% of its electricity comes from coal or gas-fired power plants.
The Economic Ministry released a statement on Monday addressing the concerns, specifically citing those reported in international media. The ministry says that Taiwan’s largest semiconductor companies TSMC and UMC have joined the RE100 project, which aims to cooperate with private companies to achieve 100% renewable energy use by 2050. It says that the massive losses suffered by Taipower are mostly due to the rise in fossil fuel prices since the outbreak of the war in Ukraine. It adds that there is a huge demand for non-nuclear renewable energy sources in Taiwan.
Advocacy groups such as Greenpeace Taiwan have advocated for Taiwan to allow more companies to use self-generated green energy. Currently, Taipower maintains a near monopoly on the purchase of energy generated from renewable sources in Taiwan.
Deputy Minister of Economic Affairs Tseng Wen-sheng (曾文生) also serves as the Chairman of Taipower. Tseng has previously said that in addition to rising fuel prices, Taipower has always strived to keep electricity prices “universally generous” to the public. Tseng adds that Taipower often compares its prices to the South Korean power utility, Korea Electric Power Corporation (KEPCO), in order to remain competitive.
KEPCO has also reported billions in losses, reaching US$154 billion in debt by June 2023, according to Reuters.