Recitation of Power Policy：Lai Should Not Delay Any Further
China Times Editorial, April 19, 2024
Recently, multiple power outages have occurred in northern Taiwan, with Taoyuan, a hub for agriculture and industry, experiencing five outages over three consecutive days. Even the bustling east side of Taipei faced blackouts, causing businesses to suffer losses from being unable to operate. Reports of power outages of various scales from different regions have circulated online, albeit not extensively covered by the media. Despite the widespread power outages, Minister of Economic Affairs Wang Mei-hua insists that these are issues with the power grid, not a shortage of electricity.
Power Grid Resilience Questioned Amid Widespread Outages
The fact of power shortages in Taiwan has long been acknowledged by various sectors, rendering Minister Wang and the ruling Democratic Progressive Party's (DPP) rhetoric unconvincing. Apart from annual reports from the General Chamber of Commerce, Chinese National Federation of Industry, and the American Chamber of Commerce in Taiwan, which have consistently urged the government to address the issue of insufficient power supply, a recent opinion by Bloomberg pointedly linked Taiwan's power crisis directly to the ineffectiveness of the DPP's green energy policy. According to Bloomberg, Taiwan's power shortage stems from a malfunctioning power policy.
Under the "Nuclear-Free Homeland by 2025" policy, initiated since President Tsai Ing-wen took office in 2016, Taiwan has experienced four large-scale blackouts, the highest under any administration. Regional power outages have become almost daily occurrences, affecting the daily lives of Taiwanese citizens, while larger enterprises have resorted to installing backup generators to cope with the intermittent power shortages, a widely known secret in the industry.
Regarding the power outage on the evening of April 15, when four units of the Taiwan Power Company’s (Taipower) power plants tripped consecutively, causing a tight supply of electricity, Taipower initiated a "demand response" by purchasing electricity from major consumers. Taipower's General Manager Wang Yao-ting disclosed that they spent approximately NT$24 million (about US$735,600) to purchase electricity at a maximum rate of NT$12 (about US$0.36) per kilowatt-hour that day. The recipients of this electricity purchase included over ten large enterprises in the semiconductor, electronics, petrochemical, and steel industries. Taipower's open and transparent disclosure of such high electricity purchase costs to the public is unusual. It appears that under the pressure of public concern about the power shortage, Taipower also seeks to break free from the stigma of power shortage and unstable electricity supply, hence the public exposure of its dilemma in purchasing electricity from the industry at exorbitant prices.
At NT$12 (about US$0.36) per kilowatt-hour, the purchase price is 3.48 times the average electricity price of NT$3.45 (about US$0.10) per kilowatt-hour and 3.27 times the average generation cost of NT$3.67 (about US$0.11) per kilowatt-hour. With accumulated losses amounting to NT$382 billion (about US$11.7 billion), why would Taipower engage in such financially detrimental transactions? Moreover, it is still not summer, yet Taipower is compelled to purchase electricity from businesses at high prices, which is absurd. Even if, as claimed by Minister Wang, the problem lies in the power grid, hasn't the Tsai administration already invested billions to strengthen grid resilience? Where did all that money go? No wonder angry residents of Taoyuan flooded President Tsai and Minister Wang’s Facebook pages with comments.
Recently, when announcing the personnel appointments for the economic and financial cabinet, prospective Premier Cho Jung-tai emphasized that ensuring stable power generation is a top priority. However, under the Tsai administration's established energy policy, the severe lag in the progress of green energy is a fact, making it impossible to address the power shortage crisis. Furthermore, since the cost of green energy is 1.86 times the average energy generation cost and 5.45 times that of nuclear energy, the result is that the more green energy there is, the more expensive electricity becomes. It seems there will be problems regardless of whether there is more or less green energy.
Third Nuclear Power Plant: Last Resort for Power Shortages
Moreover, in recent years, conflicts such as those between Russia and Ukraine, and tensions in the Middle East have caused oil and natural gas prices to soar. This has not only increased the cost of electricity generation but also posed challenges to Taiwan's energy independence, as 98 percent of its energy is imported. Currently, Taiwan's natural gas reserves are only sufficient for 10 to 11 days of use. With the Tsai administration planning for natural gas to account for over 50 percent of electricity generation, Taiwan would face a crisis of "no gas available" and "no electricity to generate" if a conflict in the Taiwan Strait were to persist for more than 11 days. If the incoming administration led by President-elect William Lai truly aims to alleviate the power supply crisis and maintain stable electricity prices, abandoning the anti-nuclear policy is an unavoidable and perhaps the only option.
Of the four nuclear power plants in Taiwan, the Fourth Nuclear Power Plant has been decommissioned, and restarting it is challenging and unlikely in the short term. Both Units 1 and 2 have entered the decommissioning process. Unit 3 will have its operating license expire in July this year, while Unit 2 will expire in May 2025. In other words, Unit 3 has not yet entered the decommissioning process, making it the last resort for the Lai administration to urgently address power shortages and reverse the crisis.
Kuo Chih-hui, who is designated the next Minister of Economic Affairs, stated his deep concern about the "Five Shortages" issue, including power shortages. However, when it comes to the issue of extending the operation of nuclear power plants, Kuo is cautious, emphasizing the goal of completing the "President's directive" and refraining from making definitive conclusions at this time. In other words, whether to abandon the anti-nuclear policy, or amend legislation to extend the operation of nuclear power plants, especially the Third Nuclear Power Plant, to alleviate Taiwan's power shortage crisis and annual electricity price increases, lies ultimately with Lai. Time is running out for Lai to correct the energy policy. If action is not taken soon, it will be too late!
From: https://www.chinatimes.com/opinion/20240419004377-262101?chdtv