Electricity supplies across the country will remain normal this summer, despite widespread public concern that there might be a shortage due to factors at home and abroad, according to the state-run Taiwan Power Co (Taipower, 台電).
Although the public are worried that electricity consumption will increase because of an improved economy, Taipower said over the weekend that supplies this summer will be sufficient.
During the first five months of this year, the country's electricity supplies increased by 7.8 percent, marking a noticeable growth over the previous year's level of 3.2 percent, according to statistics provided by Taipower.
The company estimates that single-month consumption in July and August may peak at around 29.8 million kilowatts and that it may break the 30 million kilowatt level -- a 15-year high.
Taipower, which is 97 percent government-owned, enjoys a monopoly status in power generation, transmission and distribution in the country.
"Taiwan's lack of fuel resources and reliance on electricity for economic growth make Taipower strategically important to the nation," said Tony Tsai (
The government's Directorate General of Budget, Accounting and Statistics (DGBAS) predicts the nation's economic growth, measured by gross domestic product (GDP), will accelerate to 5.41 percent this year from 3.24 percent last year.
While electricity prices will remain stable for the time being, the company doesn't rule out the possibility of adjusting tariffs in the future to reflect higher global costs for coal, oil and natural gas, Taipower President Lin Ching-chi (
"The price of coal is 130 percent higher than last year," Lin said at the Ministry of Economic Affairs.
Taipower last week also saw its plan to invest NT$50 billion (US$1.42 billion) in building a power plant in Changhua in central Taiwan getting the green light from the Council for Economic Planning and Development (CEPD).
Under the plan, the company would install two coal-fired generators at the plant, each one capable of generating 800 megawatts. The budget for the plant will be appropriated from next year's budget and the two generators will start operating in January 2011 and July 2011, respectively.
With the nation's power demand at peak times increasing by 1,400 megawatt every year, Taipower said it has asked Chinese Petroleum Corp (中油), the nation's state-owned oil refiner, to increase its purchases of liquified natural gas, while four independent power producers (IPPs) are to join ranks with Taipower to provide supplies for industry.
The four IPPs -- Chiahui (嘉惠), Kuokuang (國光), Hsingchang (星彰) and Fengte (豐德) -- are expected to generate a combined capacity of 2.62 million kilowatts per month.
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