Taipower General Manager Resigns Over Outage, Lai Faces Power Supply Crisis Even Before Taking Office
Comprehensive Report by Taiwan Weekly
On April 15, Taiwan faced a nationwide power rationing crisis exacerbated by consecutive days of blackouts in Taoyuan, sparking public outrage. General Manager Wang Yao-ting of the Taiwan Power Company (Taipower) abruptly announced his resignation on April 20 and refused to reconsider his resignation, becoming the fifth top finance executive to step down due to the power crisis during the administration of President Tsai Ing-wen.
Premier-designate Cho Jung-tai emphasized that ensuring a stable power supply will be the top priority of the new cabinet. Designate Minister of Economic Affairs, J.W. Kuo, chairman of TOPCO Scientific Company, stated that upon assuming office, a comprehensive electricity usage report will be presented, seeking public consensus, particularly regarding the potential extension of nuclear power plant operations.
Following the April 3 Hualien earthquake which damaged the Heping Power Plant causing it to cease operations, Taiwan Power Company had anticipated potential power supply issues and had called for power plants to be on high alert starting from the morning of April 15. Despite holding three emergency meetings that day related to power supply, Taipower had to prepare for the worst-case scenario of nationwide regionally segmented power rationing when, unexpectedly in the evening, four power units experienced breakers trips, causing the reserve capacity rate to drop below three percent, triggering the power rationing crisis across Taiwan.
Taipower resorted to all available measures, urgently purchasing three times the usual amount of electricity at three times the normal price from private enterprises such as the Taiwan Semiconductor Manufacturing Company (TSMC) and China Steel Corporation (CSC). Even the severely depleted Shihmen Reservoir was utilized for power generation to avert a power rationing crisis in northern Taiwan.
Taipower confirmed that the purchased electricity cost as high as NT$12 (about US$0.36) per kilowatt-hour, hitting the ceiling of the demand bidding mechanism. This expenditure amounted to NT$24 million (about US$737,760) overnight, drawing criticism. Despite Taipower's claims of problem resolution, Taoyuan City experienced five large-scale blackouts within three days starting from April 16, affecting nearly 30,000 households and prompting local government dissatisfaction.
Under President Tsai, Taiwan encountered major blackouts on August 15, March 3, and April 15, leading to the resignation of Minister of Economic Affairs Lee Shih-guang, CPC Corporation, Taiwan Chairman Chen Chin-te, Taipower Chairman Yang Wei-fu, and General Manager Wang Yao-ting (who is still being persuaded to stay), totaling five top finance executives.
Opposition Kuomintang (KMT) and Taiwan People’s Party (TPP) legislators jointly criticized the government, emphasizing that merely replacing Taipower's general manager won't resolve the issue unless the flawed energy policies are rectified. Sacrificing competent civil servants won't suffice, and the Democratic Progressive Party (DPP) administration should be held accountable for its misguided green energy decisions.
Opposition lawmakers have raised concerns about the power supply insufficiency as early as April. With the decommissioning of Unit 1 at the Third Nuclear Power Plant scheduled for July, the summer is expected to see a more severe power shortage. They once again urge the incoming Lai administration to consider extending the operating licenses for the second and third nuclear power plants. The business community, which has repeatedly called on the government to restart nuclear power, is hopeful that Kuo, with his industry background, will reconsider nuclear power and increase the base load power of the grid, providing reassurance to industries.
The power supply issue became a focal point during the press conference on April 16 when Premier-designate Cho unveiled the new financial and economic cabinet lineup. Cho emphasized that the new cabinet's top priority would be ensuring a stable power supply. He stated that Kuo, with his expertise in the energy industry, would be tasked with ensuring a stable power supply and promoting the development of diverse green energy sources, as well as encouraging industries to implement deep energy-saving measures to achieve the goal of transitioning towards net-zero carbon emissions by 2050.
Kuo expressed his understanding of the "Five Shortages" issue as someone from the private sector. He pledged to present a comprehensive report on electricity usage upon taking office. If an extension is indeed necessary, he hopes to garner public consensus. His goal is to fulfill the "presidential directive" and engage in extensive communication with all stakeholders to make decisions in a safe manner.
Lee Yuan-tseh, former president of Academia Sinica, also criticized the Tsai Ing-wen government, accusing it of deceiving the public with empty promises. To achieve net zero by 2050, carbon dioxide emissions must be halved by 2030 compared to 2020 levels. With only six years left, the government has made no substantial efforts in the past four to five years, making it impossible to achieve the 2050 goal.
Lee stated that during his tenure as a presidential advisor, he raised the issue of global warming with President Tsai, suggesting that Taiwan take action. However, President Tsai's response, "What happens after 2024 is not my concern," left him unable to agree. He expressed his intention to discuss climate change adaptation with a group of people and hopes that President-elect Lai will have the correct ideas in this regard.
Following the Hualien earthquake, the power supply remained normal, and both the Ministry of Economic Affairs and ruling DPP legislators credited this to "energy transformation," with energy storage and photovoltaic power assisting in stabilizing the power system. However, the actual situation and data may not necessarily support this claim. Energy storage batteries only provided 55,800 kilowatts, sustaining the system for just 5 minutes during the blackout; the remaining 1,225,200 kilowatts came from pumped storage hydro and emergency gas turbines. The April 15 power outage crisis immediately exposed the vulnerability of the power system.
On April 15, the instant peak load reached slightly over 35 million kilowatts, still far from the historical peak of 40.75 million kilowatts on July 22, 2022. However, the Directorate-General of Budget, Accounting and Statistics (DGBAS), Executive Yuan, has forecasted an economic growth rate of 3.43 percent this year, significantly higher than last year's 1.31 percent. With the economy picking up steam, electricity consumption is expected to rise. Coupled with the decommissioning of Unit 1 at the Third Nuclear Power Plant, the power outage crisis this summer looms large. Taiwan's power shortage not only impacts domestic economic development and civilian needs but may also further affect the willingness of multinational companies to invest in Taiwan.