By Liu
Jyh-jian ???
Last month marked the start of higher summer electricity prices, with all of the nation’s power plants geared up to meet peak summer demand. Some industries often complain that there is a power shortage, but state-owned Taiwan Power Co (Taipower) and the Ministry of Economic Affairs insist power supply is sufficient. Meanwhile, certain environmental groups and individuals have accused Taipower of hoarding power supply.
Asked about the issue, Taiwan Semiconductor Manufacturing Co (TSMC) chairman Mark Liu (???) said: “Since the government thinks we have enough electricity supply, the only thing we can do is to believe it.”
All of these comments likely stem from the following:
First, the supply of electricity from renewable energy is too slow and too limited to meet the needs of industry. According to reports available on the Internet, renewable energy accounts for only 8.95 percent of total power generation (the goal is to achieve 25 percent by 2025), which is indeed quite slow. The COVID-19 pandemic in the past three years has caused delays and increased costs, and the impact has been severe.
Second, there seems to be no confidence in Taipower’s operation of the power system, especially after several incidents, such as those on Aug. 15, 2017, and May 13 and May 17 in 2021. Although Taipower is working hard to improve the power grid and operational resilience, public confidence and risks are beyond its control. There is still good reason for concerns over Taipower’s power plants, especially its gas-fired plants, being too concentrated and the power grid too fragile.
Third, forecasts of supply and demand growth might be different from reality. The ministry and Taipower estimated that power consumption would grow 2.5 percent annually over the next few years. The reality is demand was slower during the pandemic, but could be higher as Taiwanese companies relocate back home and TSMC expands its factory.
With electricity in short supply, Taipower has adopted “demand bidding” to cope with short-term peaks. The severity of global warming and climate change would only aggravate the problem of meeting electricity demand.
Fourth, developing and building power generation facilities must be done way in advance. It usually takes five to 10 years to complete a project, including environmental impact assessments and communicating with the public. This long process — and uncertainty — would cause anxiety and unrealistic expectations.
Fifth is Taiwanese industries’ incorrect assumption about nuclear power. Some pro-
Chinese Nationalist Party (KMT) and pro-China presidential candidates and industry moguls have once again proposed promoting nuclear power and delaying the decommissioning of nuclear power plants. However, Taiwan is not a suitable place for developing nuclear power. The most suitable alternative to nuclear power is geothermal energy, but it would take time, investment, administrative decisionmaking and public funding to bring it to fruition.
To resolve the power supply problem and crisis, the government could consider the following:
First, although natural gas is efficient and clean, and would halve carbon emissions, it is not an ultimate solution as it would still emit carbon. Instead, it should be viewed as a transitional strategy to cope with current shortage.
Second, upgrade the power system, making it an intelligent system for intelligent management, including replacing electric meters with digital meters.
Third, increase electricity prices appropriately, liberalizing the market to set equitable prices and removing subsidies to reflect external costs, carbon fees and carbon taxes.
Fourth, a nuclear-free policy is the correct policy.
Fifth, step up development of renewable energy by making full use of Taiwan’s natural resources.
Sixth, boost power-saving measures (including subsidies, if necessary), improve energy efficiency and productivity, and move toward low-carbon power systems. The private sector and industries must also set and follow power-saving goals.
Seventh, large enterprises that are big power consumers should invest in the construction of power plants and power systems.
Finally, in case of a national security emergency, decommissioned coal-fired generating units can be used, instead of relying on nuclear power plants.
Liu Jyh-jian is president of the Taiwan Environmental Protection Union.
Translated by Lin Lee-kai
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