Apart from the electricity generated by self-owned power plants, Taipower also purchases electricity from renewable energy generation systems, Independent Power Plants, and cogeneration systems. The origin and basis for each type of electricity purchase are explained below:

Renewable Energy

Taipower has adequately operated in conjunction with the government’s promotion of renewable energy development policy. The electricity generated by renewable energy power generation facilities or the surplus electricity from self-use power generation facilities is wholesale purchased by Taipower.

Following the policy of developing and utilizing water resources, Taipower has purchased power from the hydroelectric generating unit attached to water conservancy facilities established by the government and Department of Irrigation and Engineering since 1968.

Taipower adheres to Renewable Energy Development Act, pertinent sub-laws and Operation Directions of Renewable Energy Procurement of Taiwan Power Company to execute the power purchase process of those renewable energy equipment established after Renewable Energy Development Act took effect on July 8, 2009.

Independent Power Plant (IPP)

Due to the public's environmental awareness raising, power supply development was hindered. From 1991 to 1996, The reserve capacity rate of the power system was only 4.2-7.4%, which was far lower than the reasonable reserve capacity rate of 20% . There were power outages and power rationing at that time. There were 40 power cuts in six years, which had a huge impact on the economy, society and people's livelihood. Due to the demand for electricity, the Ministry of Economic Affairs opened up private power plants that Taipower could not build in time to alleviate the pressure of power supply shortage.

"Operation Directions for a Deregulated Power Supply Industry" was promulgated by MOEA on Sep. 3, 1994. "Application Information for Power Plant Construction" of phaseⅠandⅡderegulating private power plants was promulgated on Jan. 1 and Aug. 25,1995.

"Deregulating Private Power Plant Solution" of phase Ⅲ was promulgated by MOEA on Jan. 21, 1999.

"Deregulating Private Power Plant Solution" of phase Ⅳ was promulgated by MOEA on Jun. 6, 2006.

After the amendment of the Electricity Act on January 26, 2017, Taipower procurement case is handled in accordance with the Government Procurement Law.

 

Cogeneration

To promote cogeneration systems that have a higher thermal efficiency of heat and electricity production and enhance energy utilization, the government enacted legislation in 1988 specifying various incentive measures. Taipower, under these regulations, purchases surplus electricity from cogeneration systems.

These power purchase agreements are implemented based on the "Cogeneration System Implementation Regulations" issued by the Ministry of Economic Affairs on September 4, 2002.