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Renewable energy
Renewable energy purchase price will be made in accordance with the "Renewable Energy Development Act," its sub-laws and agreements.
Applicable to a uniform price system (wind and solar power):
Purchasing fee = Purchasing rate (NT$/Per kWh) × Generation of Power Equipment (kWh)
Applicable to two-part tariff (Reservoir Power Plant)
Purchasing fee = Capacity fee + Energy fee
Capacity fee = Capacity rate × Purchased capacity
Energy fee = Energy rate × Generation of Power Equipment (kWh)
Independent Power Plant (IPP)
| Phase | Price Determination Method | Selected operator |
|---|---|---|
| Ⅰ&Ⅱ | The MOEA evaluates the applications from IPPs, and Taipower handles the bidding and bidding operations afterwards. To win the bid, the bid price summited by the IPPs for each unit must lower than the reserve price set by Taipower. |
Coal plant: Mailiao, Ho-Ping LNG plant: Ever Power, Chia-Hui, Hsin-Tao |
| Ⅲ | The MOEA evaluates the applications from IPPs, and Taipower sets and announces the price afterwards. | LNG plant: Kuo-Kuang, Star Energy, Sun-Ba, Hsing-Yuan |
| Ⅳ | The MOEA evaluates the applications from IPPs, and Taipower handles the bidding and bidding operations afterwards. To win the bid, the bid price summited by the IPPs for each unit must lower than the reserve price set by Taipower. |
None |
| Power Procurement Project (Commercial Operation Year: 2020) | Taipower handles the bidding and bidding operations in accordance with the Government Procurement Act. To win the bid, the bid price summited by the IPPs for each unit must lower than the reserve price set by Taipower. |
LNG plant: Chia-HuiⅡ |
| Power Procurement Project (Commercial Operation Year: 2024) | LNG plant: Sun-BaⅡ |
|
| Power Procurement Project (Commercial Operation Year: 2025 and 2026) | LNG plant: Chung-Chia、Jiou-Wei |
Remark: Both the reserve prices and the announced prices of each phase are set according to the Avoided Cost Principle, which means the purchase prices of the electricity from IPPs must lower than(or at least equal to) the expenses of generating equivalent power supply units(such as coal or combined cycle unit of natural gas)by Taipower.
The Structure of Purchasing Rate
To ensure IPPs operate stably, Capital Expenses are set by fixed rate. Fuel Costs, O&M and Power Development Assistance Funds are adjusted according to the contract terms.
- Capital Expense: Capital expense refers to the cost of constructing a power plant, and it is calculated by the average cost which is discounted by the cost of capital rate and the lifespan of generator (25 years).
- Fuel Costs: The Coal Power Plants: Adjusted annually based on Taipower’s cost of coal-fired heat value.
The LNG Power Plants: Adjusted monthly based on CPC’s announcement of natural gas price and heat value. - Fixed (or Variable) Operating and Maintenance costs: Adjusted by Producer Price Index annually.
- Power Development Assistance Funds:
- Phase Ⅰ, Ⅱ, Ⅲ and Ⅳ: Adjusted based on the average unit price of electricity purchased in the previous year and the allocation standard stipulated in the "Enforcement Guidelines for Promote Power Development Operations and Assistance Operations of Taiwan Power Company."
- Power Purchase Procurement (Commercial Operation Year: 2020 to 2026): Adjustments are and will be made based on the "Regulations Governing the Use of Fund to Facilitate the Development of Electric Power" and the contribution rate stipulated in the "Percentage Allocation of Fund to Facilitate the Development of Electric Power on Electricity Generation, Transformation and Distribution Facilities" announced by MOEA.
The mechanism for adjusting the power purchase rates mentioned above is clearly stated in each Power Purchase Agreement, which forms the basis for the execution of power purchases and sales between Taipower and IPPs. These agreements and their templates are required to be reported to the Competent Authority (MOEA).
Cogeneration
According to the "Cogeneration System Implementation Regulations," the electricity purchase price is calculated as follows:
For providers not offering guaranteed capacity during peak hours:
PPA Rate = Energy Rate
PPA Price = Energy Rate (TWD/kWh) × Purchase Quantity (kWh)
For providers that offer guaranteed capacity during peak hours:
PPA Rate = Capacity Rate + Energy Rate
PPA Price = (Capacity Rate (TWD/kW) × Peak Guaranteed Capacity (kW)) + (Energy Rate (TWD/kWh) × Purchase Quantity (kWh))