Taipower signed different contracts with different operators considering the characteristics of power generation equipment. The following descriptions are the ways of power purchase:

Reservoir Power Plant

Rather than fit the nationwide power supply and demand situation, electricity generated from reservoir power plants needs to reschedule their power generation according to hydrological conditions and residential water use. As a result, the stability and reliability of the power supply is low.

Cogeneration

Cogeneration systems produce both electricity and thermal energy simultaneously during the production process. The surplus electricity, after being used on the production line is sold to Taipower. The operation of cogeneration systems primarily aligns with the production schedule, making it impossible to adjust to the nationwide power supply and demand situation. Therefore, Cogeneration is not a stable and reliable power source.

Independent Power Plant (IPP)

IPPs specialize in power generation and sales, thus, except for internal consumption, the power generated from their plants should be sold to Taipower completely. Besides, the contract must be drawn up based on the supply and demand situation of the power system. There is a penalty, if they fail to abide by the dispatching and operating contract. IPPs are a stable and reliable source of power.

Renewable Energy

To utilize the energy in an efficient way, the government encourages private operators to establish renewable power plants such as wind and solar. Taipower was requested to purchase the electricity generated by renewable energy generation facilities at the wholesale purchase rate stipulated by the central competent authority. It’s not a stable source of power supply because power generation from wind and solar is mainly affected by the weather rather than operating depending on the supply and demand of power system timely.