Taipower reviews contracts with green energy providers

The firm is seeking advice on whether it can renegotiate terms with suppliers it clinched prior to the 2017 Electricity Act.

State-run Taiwan Power Co. (Taipower) is reviewing its contracts with green energy providers in a bid to meet local demand, a report by news agency Focus Taiwan revealed.

Taipower is seeking legal advice on whether it can renegotiate the terms of its contracts with green energy suppliers, particularly those signed before the 2017 Electricity Act, which limits those companies to selling only to Taipower, a Ministry of Economic Affairs (MOEA) official said.

There are also plans to increase green energy generation, the official said, adding that in 2019, solar energy is expected to increase its installed capacity by 1.5GW. This will in turn contribute an additional 1.875 billion kWh of annual power generation capacity.

In 2020, the installed capacity of solar energy will be increased by another 2.2GW, the official said.

“Taipower's efforts to review its green energy supply contracts are seen as a response to contract chipmaker Taiwan Semiconductor Manufacturing Co.'s (TSMC) decision to greatly expand its procurement of green energy following its commitment to use only clean energy for the production of chips for Apple Inc.,” the report noted.

TSMC has reportedly set a goal of using 20% green energy at a new factory in the Southern Taiwan Science Park in Tainan, which is expected to break ground in 2020.