Taipower Chairman Tsang Wensheng: No differential electricity tariffs were proposed, and emphasis was placed on joint decision-making with the industry.
Quick Look
- Taipower Chairman Tsang Wensheng clarified that Taipower has not proposed a differentiated electricity tariff plan for the semiconductor industry.
- He emphasized that Taiwan's high-tech industry's demand for electricity is growing rapidly, and Taipower needs to make joint decisions with the industry on power generation equipment investment and future power plant operations.
- Taking the carbon capture research of TSMC and Formosa Plastics Thermal Power Plant as an example, he pointed out that joint investment decisions involve equipment depreciation and investment and other aspects.
AI-generated summary
Why It Matters
Taiwan's high-tech and semiconductor industries are developing rapidly and demand for electricity is increasing. There are rumors that Taipower may implement a differential electricity bill policy for large users.
Taiwan Power Chairman Vincent Tsang. (Photo by reporter Lin Jinghua)
[Reporter Lin Jinghua/Taipei Report] It is reported that Taipower intends to set "differential electricity tariffs" for the semiconductor industry. Taipower Chairman Tsang Wen-sheng explained today (5th) that Taiwan's high-tech and semiconductor industries are developing rapidly, and electricity consumption is very important, so that Taipower has indeed been integrated into the technology supply chain. He emphasized that Taipower has not proposed differential electricity rates, and the speed of investment in power generation equipment and the operation of future power plants require Taipower and the industry to make joint decisions.
Global wafer leader TSMC continues to expand its factories and its demand for domestic electricity continues to increase. It is reported that TSMC will offer differential electricity rates and charge particularly large users for depreciation of power plants. Before attending the symposium at the Electric Power School, Tsang Wensheng made two points. Taipower has never talked about "differential electricity charges." However, Taiwan's technology industry is developing rapidly and electricity consumption is more important. Taipower has been slowly integrated into Taiwan's technology supply chain in recent years. Zeng pointed out that Taipower's current investment in power generation equipment is related to industrial power demand. Therefore, both parties must make joint decisions on the speed of investment in power generation equipment and future operating conditions.
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Recently, TSMC and Formosa Plastics have also started research on carbon capture and storage in thermal power plants. Zeng Wensheng used this as an example. If similar carbon capture technology is to be completed, it will involve more "joint investment decisions," including equipment depreciation and equipment investment, which are only part of the same joint decision.
Tsang Wensheng also said that Taipower’s power supply is supplied to the entire power grid, but now we will see that Taiwan’s domestic electricity consumption does not fluctuate too much, but industrial electricity consumption is growing very fast, so the growth rate of industrial electricity consumption affects investment decisions, which must be decided together with Taipower’s investment decisions.
He explained that the future development of electricity consumption will be subject to time variables, and Taipower needs to discuss a "joint decision-making mechanism" with the technology industry, because Taipower cannot be just an outsider or a pure supplier in the process of industrial development.
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What to Watch
AI outlook — possibilities, not facts
Taipower will discuss establishing a joint decision-making mechanism with the technology industry
Likely · Within weeks
TSMC and Formosa Plastics’ thermal power plant carbon capture research will promote joint investment decisions between Taiwan Power and the industry
Possible · Within months
Open Questions
- How will Taipower and the industry specifically establish a joint decision-making mechanism?
- What is the source of the rumors about differential electricity bills?
- What is Taipower’s planning timetable for future power generation equipment investment?
