Doubts voiced over alternative energy plan

Damning words from the nation's top energy official Chen Chao-yi (陳昭義) about the government's plan to fill the power deficit left by the axed Fourth Nuclear Power Plant have cast serious doubt on the stability of Taiwan's electricity supply.

On Tuesday, Chen told reporters that he had requested reassignment to another position and expressed serious misgivings about the implementation of the alternative power plan, saying that he had "no confidence" in the effectiveness of the plan.

Chen's position as chief of the Energy Commission (能源會) places him close to the top of the energy policy formulation pyramid. His statements and resignation have dropped a bombshell on efforts to implement the plan, another official at the commission said.

Under the scheme put forward by Minister of Economic Affairs Lin Hsin-yi (林信義), independent power producers (IPPs) would be encouraged to build more LNG-fired plants in northern Taiwan to offset the 2,700-megawatt shortfall left by the cancelled nuclear plant.

But Chen said constructing the plants is not the key problem, but rather building the gas supply line network to fuel the plants and power lines and high-voltage substations to get the electricity to end users. Opposition among local residents to the construction of such networks near their homes has remained strong in the densely populated northern areas if the island.

"Compensating residents with cash is one way to quiet their protests, but a legal basis and system to deal with such claims needs to be established," Chen said.

A good example of such problems is the construction of the privately-operated Everpower Plant (長生電廠) in Taoyuan. Full operation of the 900-megawatt LNG-fired plant has been held up for years by opposition from local residents to the erection of transmission towers that distribute the plant's power.

On Tuesday Everpower executives met with minister Lin to plead for a permit to build the two remaining towers, saying that the company has no legal basis to pay any compensation to residents. But Lin said the company would receive a permit only after the dispute with the residents was settled. According to an energy commission official, interest among IPPs to build more plants has been further smothered by concerns about the economy.

"IPPs have told us the they are having trouble finding capital to finance construction," said Chuang Shih-ming, (莊世明) chief secretary of the commission.

Added to this concern is the schedule the alternative power plan puts on construction of the plants, Chuang said.

"Under the latest market opening to IPPs, the plants must be completed by 2005," Chuang said.

Chen said people were losing faith in the plan's viability.

"The government continues to assure people the plan will work, but we have seen no concrete progress," Chen said.