The government would not be able to reach the power reserve margin target it set for 2025 if fails to commence operations at the coal-fired Shenao Power Plant (深澳電廠) as scheduled, the Ministry of Economic Affairs said yesterday.
The nation is likely to see a power shortfall by 2025, as the reserve margin is expected to decline 1.4 percent if the plant does not come online in July that year, the ministry said in a statement.
The government aims to improve the margin to 15 percent after next year from 7.1 percent this year by accelerating construction of several power plant projects, including expanding the Shenao plant in New Taipei City’s Rueifang District (瑞芳).
Photo: CNA
Upgrading the plant would ensure a stable power supply and improve energy efficiency, the ministry said, adding that the facility’s lower heating value — its efficiency taking into account the energy lost as water evaporates during combustion — is forecast to grow to 45 percent from 38 percent after the upgrades are completed.
Upgrades at the coal-fired Linkou Power Plant (林口發電廠) in New Taipei City are finished, the ministry said, adding that it would strike a balance between efficiency and environmental protection when upgrading the Shenao plant.
With more advanced equipment, the facility would be capable of reducing sulfur oxide and nitric oxide emissions, it added.
The ministry’s remarks came after the plant on Wednesday passed an environmental impact assessment, triggering renewed criticism over worsening air quality in northern Taiwan.
Environmental groups consider the Shenao plant upgrade to constitute a new project, as the original facility was mothballed in 2007 before being demolished in 2011, local Chinese-language media reported.
The government should invest more resources in the development of renewable energy resources, instead of generating coal-based energy, environmental groups have said.
The ministry said it assessed the possibility of replacing coal with natural gas at the Shenao plant, but the site does not have the space required to store the fuel.
Despite the government’s goal of generating 20 percent of the nation’s electricity from renewable sources by 2025, the ministry said it is still necessary to partly rely on coal-generated energy to ensure a stable energy supply.
Taiwan, an energy-dependent nation that imports nearly 98 percent of its fuel, is susceptible to fluctuations in global energy prices, the ministry said.
Coal-generated energy is seen as a more stable energy resource compared with renewable sources, as coal can be stored for 30 days, it added.
UNCERTAINTY: Investors remain worried that trade negotiations with Washington could go poorly, given Trump’s inconsistency on tariffs in his second term, experts said The consumer confidence index this month fell for a ninth consecutive month to its lowest level in 13 months, as global trade uncertainties and tariff risks cloud Taiwan’s economic outlook, a survey released yesterday by National Central University found. The biggest decline came from the timing for stock investments, which plunged 11.82 points to 26.82, underscoring bleak investor confidence, it said. “Although the TAIEX reclaimed the 21,000-point mark after the US and China agreed to bury the hatchet for 90 days, investors remain worried that the situation would turn sour later,” said Dachrahn Wu (吳大任), director of the university’s Research Center for
Alchip Technologies Ltd (世芯), an application-specific integrated circuit (ASIC) designer specializing in artificial-intelligence (AI) chips, yesterday said that small-volume production of 3-nanometer (nm) chips for a key customer is on track to start by the end of this year, dismissing speculation about delays in producing advanced chips. As Alchip is transitioning from 7-nanometer and 5-nanometer process technology to 3 nanometers, investors and shareholders have been closely monitoring whether the company is navigating through such transition smoothly. “We are proceeding well in [building] this generation [of chips]. It appears to me that no revision will be required. We have achieved success in designing
PROJECTION: KGI Financial said that based on its foreign exchange exposure, a NT$0.1 increase in the New Taiwan dollar would negatively impact it by about NT$1.7 billion KGI Financial Holding Co (凱基金控) yesterday said its life insurance arm has increased hedging and adopted other moves to curb the impact of the local currency’s appreciation on its profitability. “It is difficult to accurately depict the hedging costs, which might vary from 7 percent to 40 percent in a single day,” KGI Life Insurance Co (凱基人壽) told an investors’ conference in Taipei. KGI Life, which underpinned 66 percent of the group’s total net income last year, has elevated hedging to 55 to 60 percent, while using a basket of currencies to manage currency volatility, the insurer said. As different
Taiwanese insurers are facing difficult questions about the damage of recent swings in the New Taiwan dollar. Regulators might have a partial solution: letting firms change how they calculate the value of foreign currency assets. The Financial Supervisory Commission (FSC) is considering allowing insurers to use six-month average exchange rates when they calculate risk-based capital in their semiannual reports, a shift from the current system where insurers use exchange rates on the final day of reporting. The change could ease pressure on the US$1.2 trillion insurance sector, whose huge exposure to foreign assets came into the spotlight earlier this month after a