In 1888, the Qing Dynasty governor of Taiwan, Liu Ming-chuan, founded the Xingshi Company in Taipei. The company supplied electricity for lighting with a small, coal- fired, steam generator. Although the firm only lasted for a month, it marked the origin of Taiwan’s self-managed electricity industry.
Later, during the Japanese era, a power plant was completed in Guishan in 1905. This was the beginning of hydropower generation in Taiwan. Over time, development continued, eventually leading to the establishment of the Taiwan Electric Power Co., Ltd. in 1919. Several major projects were completed during this period including the Sun Moon Lake hydropower project and the construction of a transmission line in western Taiwan that connected the north of the island with the south. By 1944, the total installed power capacity of Taiwan had reached 321 megawatts (MW). Since 1945, the government has consistently furthered the development of the electricity industry in Taiwan, with the following major periods:
1. Reconstruction (1945-1953) – Mainly Based on Hydro
Taipower was established on May 1, 1946. By 1953, the installed capacity reached 363MW. This was composed of primarily of hydro (93.7%) and thermal (6.3%) power generation. The power system of this period was primarily characterized as being mainly based on hydro.
2. Expansion (1954-1965) –Equal Emphasis on Hydro and Thermal Power
By 1962, thermal power generation had proportionally exceeded hydro power. This marked the beginning of a period in which equal emphasis was placed on hydro and thermal power.
3. Highly-Developed (1966-1974) – Mainly Based on Thermal Power, Partially Based on Hydro
After the mid-1960s, Taiwan's industry quickly blossomed, and power consumption increased sharply. Taipower actively developed large-capacity, high-efficiency thermal power. During this time, the electricity system had entered a period of being mainly based on thermal power and partially based on hydro. Within the power transmission and substation systems, a 345 kV ultra-high voltage transmission line with a total length of 330 circuit kilometers was completed to improve transmission capacity and stabilize the power supply.
4. Nuclear Power Development (1975–1985): Energy Diversification
Starting from 1974, in response to the energy situation following the oil crisis, the government continued to develop thermal power units while simultaneously promoting nuclear power generation. Three nuclear power plants were completed by 1985, the installed capacity reached 5144 MW. The power system entered a period of energy diversification.
5. Balancing Power Supply and Demand (1986-1993) – Demand-Side Management
As economic growth continued, Taipower faced a diminishing reserve capacity. This led to a period (1986 - 1990) of building large-scale, thermal, and hydro plants, implementing time of use rates, interruptible power, energy conservation, and encouraging cogeneration. To balance power supply and demand, the power system entered a period of demand-side management.
6. Open Power Generation (1994-2000) – Opening Power Generation to Private Enterprises
Since the 1990s, global electricity markets have gradually trended towards liberalization. Throughout this period, Taiwan’s high population density and ongoing economic development led to a rapid growth in power consumption. To accelerate the rate of power development, the government explored market liberalization and subsequently permitted the establishment of Independent Power Producers (IPPs). With the introduction of these private enterprises to the power generation market, Taiwan entered a period of open power generation.
7. Power Grid Expansion (2001–2008)
To meet this period’s economic development challenges and increasing power demand, Taipower continuously built substations and transmission and distribution lines at various levels. To ensure a sufficient and stable power supply, a Sixth Transmission Line and Substation Project was launched in 2001, with a budget exceeding NT$300 billion. Additionally, a Fifth Power Distribution Project expanded distribution lines and upgraded transformers. These projects not only improved system reliability and stability, but also ensured the electricity needs of industry were met while laying a sturdy foundation for future smart and resilient grid development.
8. Renewable Energy Development (2009-2016)
To enhance energy independence and diversification while reducing greenhouse gas emissions, Taiwan’s government enacted a Renewable Energy Development Act in 2009. The law established a fund, provided subsidies, and ensured fair returns to incentivize the installation of renewable energy equipment, thereby marking a significant milestone in Taiwan’s renewable energy development. Taipower, for its part, actively promoted renewable energy by pursuing onshore wind and solar projects. Through these efforts, a total installed green-energy capacity of over 300 MW was subsequently achieved.
9. Accelerated Energy Transition (2017-2020)
To address public concerns about air quality and to comply with government policies, Taipower focused on increasing its use of natural gas and reducing coal-fired generation. Starting in 2017, thermal power plants began implementing load reduction measures in respond to air quality alerts. In 2019, an environmental shutdown mechanism was established, enabling environmental dispatching while maintaining the stability of the power supply. Through this initiative, some coal-fired units were completely shut down, and for the first time, the annual share of energy produced by gas-fired units exceeded that of coal-fired units. During this period, the upgrading and expansion of gas-fired units continued at the Tunghsiao, Datan, Hsinta, and Taichung power plants, with a total planned installed capacity exceeding 12,000 MW.
Additional amendments were made to the Renewable Energy Development Act in 2019. In adherence to this policy, Taipower accelerated renewable energy development and initiated offshore wind power projects, while laying the groundwork for prioritizing green energy dispatching and deploying mechanisms that ensure priority access for green power.
10. Toward Net-Zero Transition (2021-Present)
On April 22, 2021 (Earth Day), Taiwan’s government announced a goal of achieving net-zero emissions by 2050. The burden of effectively achieving net-zero in the power system while ensuring a stable power supply has emerged as a crucial challenge for Taipower. As a result, the Company continues to expand its wind and solar power and is exploring geothermal, ocean, and hydrogen energy as key potential sources of power generation.
To accommodate the increasing proportion of renewable energy, Taipower is also installing energy storage systems, promoting distributed grid projects, and implementing a Grid Resilience Enhancement Construction Plan. Net-zero emissions by 2050 have had profound impacts on Taipower's sustainable development that require sequential adjustments to both power generation and grid structures.