• Taipower and CPC Signed a Collaboration Letter of Intent (LOI) for Geothermal Development in Yilan in 2018. Combining CPC’s drilling expertise with Taipower’s power generation know-how, the Renze Geothermal Power Plant officially commenced operations on October 24. (From left: Vice Minister of the Ministry of Economic Affairs and Acting Chairman of Taipower Wen-Sheng Tseng, Executive Yuan Spokesperson Tze-Luen Lin, Secretary-General of the Executive Yuan Men-Yen Li, Premier Chien-Jen Chen; Yilan County Magistrate Zi-Miao Lin, Legislator Ou-Po Chen, CPC Chairman Shun-Chin Lee)

In 2018, Taipower, CPC Corporation (CPC), Industrial Technology Research Institute (ITRI), and the Central Geological Survey (now the Geological Survey and Mining Management Agency, MOEA) collaborated to form the “Geothermal Power Generation National Team”. Among them, Taipower and CPC further signed a Letter of Intent (LOI) for geothermal development in Yilan, combining CPC’s drilling expertise with Taipower’s power generation know-how. Together, they officially opened the Renze Geothermal Power Plant on October 24. Taipower stated that geothermal power generation produces zero carbon emissions and provides stable output 24 hours a day, with minimal weather-related disruptions. The Renze Geothermal Power Plant employs a dual-loop system with the concept of “heat extraction without water extraction”, which helps prevent pipeline fouling and corrosion, extends the lifespan of the power generation units, and maintains underground water resources. Once it is fully operational, the plant is expected to generate approximately 4.7 GWh of green electricity annually, equivalent to the annual electricity consumption of nearly 1,200 households.

On the morning of October 24, Taipower held the commencement ceremony for the Renze Geothermal Power Plant in Yilan. Distinguished guests from various sectors, including Premier Chien-Jen Chen, Yilan County Magistrate Zi-Miao Lin, Taipower Acting Chairman Wen-Sheng Tseng, CPC Shun-Chin Lee, and Legislator Ou-Po Chen, gathered at the event to witness the first achievements and efforts of the geothermal power generation national team.

• On the morning of October 24, Taipower held the commencement ceremony for the Renze Geothermal Power Plant in Yilan. Distinguished guests from various sectors, including Premier Chien-Jen Chen, Yilan County Magistrate Zi-Miao Lin, Taipower Acting Chairman Wen-Sheng Tseng, CPC Shun-Chin Lee, and Legislator Ou-Po Chen, gathered at the event to witness the first achievements and efforts of the geothermal power generation national team.

Taipower stated that in response to the international energy transition trends and the global industrial supply chain’s carbon neutrality demands, it continues to develop green energy as part of its strategy to move toward “net-zero electricity”. Geothermal power generation is one of the key strategic initiatives. Taiwan is located in the Circum-Pacific Seismic Belt (also referred to as the Ring of Fire), and all regions in the north, central, south, and east of the country have geothermal potential. Among them, Renze, Yilan (also known as Jiuzhize) is known for its hot springs. In the 1970s, geothermal exploration and drilling of two geothermal wells (Renze 1 and 2) were conducted, confirming the presence of geothermal and hot spring resources in the area. However, due to technological limitations and demand at that time, a power plant was not established. In 2018, the Geothermal Power Generation National Team was formed, drilling new wells (Renze 3 and 4) and revitalizing the geothermal power generation project.

Taipower explained that Renze’s geothermal development is shallow, with a depth of approximately 1500 meters, and the bottomhole temperature can reach 180 to 200 degrees Celsius. The power generation unit uses an Organic Rankine Cycle (ORC) with an installed capacity of 840 kW. Geothermal water is extracted through new wells drilled by CPC, and it is utilized to drive a turbine through heat exchange for power generation. Geothermal water does not directly pass through the power generation equipment during this process, which prevents scaling and corrosion problems in the equipment and pipelines, reduces downtime for maintenance, and improves equipment availability. Additionally, over 95% of the wastewater from power generation is reinjected into the geothermal reservoir, effectively maintaining the reservoir’s pressure. This “heat extraction without water extraction” concept helps extend the lifespan of the power plant and allows for cyclical power generation. The project officially commenced in July 2022 and achieved grid connection in June of 2023. The plant was opened today and is expected to officially enter commercial operation by the end of this year. It is projected to generate 4.7 GWh of green electricity annually, providing electricity for 1,200 households throughout the year (equivalent to two-thirds of the electricity consumption in Datong Township). This translates to a reduction of over 2,300 tons of carbon emissions per year, equivalent to the carbon sequestration capacity of six Da’an Parks.

Taipower stated that while geothermal power development carries higher initial risks, it offers advantages such as high energy density, small land footprint, and the ability to provide stable electricity output 24/7, nearly unaffected by weather conditions. Additionally, geothermal power plants have quick start-up and shut-down responses (for example, in the case of the Renze Geothermal Power Plant, it only takes half an hour from cold start to grid connection), and they can achieve 60% to 70% efficiency. These factors highlight geothermal energy as an indispensable green energy source for the future. The Renze Geothermal Power Plant, combines the expertise of both CPC and Taipower. During the development process, ITRI assisted in testing the production capacity of the geothermal wells. Moreover, domestically produced generator units were used, jointly establishing the “MIT Geothermal Industry Chain”.

• Taipower stated that while geothermal power development carries higher initial risks, it offers advantages such as high energy density, small land footprint, and the ability to provide stable electricity output 24/7, nearly unaffected by weather conditions. Additionally, geothermal power plants have quick start-up and shut-down responses (for example, in the case of the Renze Geothermal Power Plant, it only takes half an hour from cold start to grid connection), and they can achieve 60% to 70% efficiency. These factors highlight geothermal energy as an indispensable green energy source for the future.

The Bureau of Energy under the Ministry of Economic Affairs has stated that Taiwan’s current geothermal development capacity amounts to 61.75 MW (megawatts), including Taipower’s Renze Geothermal Power Plant, with 7.29 MW that has already been connected to the grid. Additionally, CPC’s 4 MW Yilan Tuchang geothermal project is expected to join the grid next year, with a target of achieving a cumulative capacity of 20 MW by 2025. The government has now amended the Renewable Energy Development Act to include a dedicated section for geothermal energy, ensuring a comprehensive legal framework for its development. They have also established a “Geothermal Power Generation Single-Contact Service” to assist geothermal power generation operators in the application process, aiming to continuously enhance investment incentives, accelerate geothermal power generation, and promote the growth of the industry, gradually achieving Taiwan’s energy transition goals.

• Taipower explained that Renze’s geothermal development is shallow, with a depth of approximately 1500 meters, and the bottomhole temperature can reach 180 to 200 degrees Celsius. The power generation unit uses an Organic Rankine Cycle (ORC) with an installed capacity of 840 kW. Geothermal water is extracted through new wells drilled by CPC, and it is utilized to drive a turbine through heat exchange for power generation.

• Geothermal water does not directly pass through the power generation equipment during this process, which prevents scaling and corrosion problems in the equipment and pipelines, reduces downtime for maintenance, and improves equipment availability. Additionally, over 95% of the wastewater from power generation is reinjected into the geothermal reservoir, effectively maintaining the reservoir’s pressure. This “heat extraction without water extraction” concept helps extend the lifespan of the power plant and allows for cyclical power generation.

• Glossary: Organic Rankine Cycle (ORC)
  The Renze Geothermal Power Plant utilizes a Dual-Loop Organic Rankine Cycle (ORC) power generation system. It extracts geothermal fluid from production wells and uses a heat exchanger to heat and vaporize the working fluid (refrigerant), which drives a turbine generator. The geothermal fluid does not pass directly through the power generation equipment during the process, and the tailwater from power generation is reinjected into the geothermal reservoir. This reduces the risk of mineral deposits in the pipelines and effectively maintains the pressure in the geothermal reservoir, achieving sustainable and cyclical utilization. The vaporized working fluid can also be condensed and reused, creating a dual-loop system for both the geothermal fluid and the working fluid.

Spokesperson: Professional Chief Administrator Chih-Meng Tsai

Contact Number: (02)2366-6271/0958-749-333

E-mail: u910707@taipower.com.tw

Business Contact: Director Ying-Sheng Tsai, Renewable Energy Department

Contact Number: (02)2366-8650/0988-980-032

E-mail: u746723@taipower.com.tw