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Performance Highlights
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Task Force on Climate-related Financial Disclosures (TCFD)
Taipower recognizes the impacts of climate change and its associated issues on power system operational safety and supply resilience. The Company continues to strengthen its climate management framework, enhance its system response capabilities, and promote energy transition, ensuring that the power system remains resilient while supporting Taiwan's net-zero and sustainable development goals.
Climate Change Management Framework
In 2025, Taipower deepened its climate management under the TCFD framework by assessing impacts, formulating response strategies, and evaluating financial effects for identified risks and opportunities. The Company also utilized IPCC and IEA climate scenarios to evaluate its strategic resilience.
01 Identification of climate- related risks and opportunities
- Continuously collect information on the latest domestic and international climate science research, industry trends, and policy developments as the basis for identifying climate-related risks and opportunities.
- Given the continuous and progressive nature of climate change, Taipower adopted the identified results from the previous year. Among 21 risks and opportunities covering the short, medium, and long terms, 5 major physical risks, 3 major transitional risks, and 3 major opportunities were selected as the basis for analysis, assessment, and strategy formulation.
02 Analyze potential impacts of climate related risks and opportunities.
- Monitor to the latest climate science assessment reports from the IPCC and IEA energy transition scenarios to assess the potential impacts of different climate pathways on the operating environment, infrastructure, and policy and regulatory conditions. Identify and assess climate related risks and opportunities based on the current year's operating conditions, and update the risk and opportunity matrix on a rolling basis.
03 Formulate strategies to address identified risks and leverage opportunities
- For major climate related risks and opportunities, assess the strategic resilience of response measures under different scenarios, while integrating the professional and financial experiences of each unit to continuously strengthen relevant strategies.
- Major climate related risks are included in the systematic assessment mechanism under the Enterprise Risk Management (ERM) framework. Taipower reviews impacts on operations and updates the effectiveness of controls and monitoring measures, while also assessing the potential financial impacts of major climate related risks and opportunities and the financial implications arising from response strategies.
04 Establish KPIs and targets; regularly track performance and progress.
- Refer to the methods used by international power utilities to set indicators and targets, and to consider the substantive impacts of climate-related risks and opportunities on Taipower's operations to establish corresponding indicators and targets.
- Disclose information in accordance with the TCFD cross industry indicator categories to ensure comparability.
Risk Assessment and Identification
In 2024, Taipower identified 13 risk events. For each identified risk, the Company defined scenario-based control measures and began conducting rolling reviews to evaluate performance and track changes. This strengthens both proactive prevention and reactive response capabilities. Through systematic risk management, Taipower analyzes interconnections between risks and sustainability issues, enhances organizational risk awareness, identifies emerging opportunities, and advances toward its long-term sustainability goals.
Physical Risks
Transition Risks
Opportunities
| Factor | Impact Description | Financial Impact | Response Strategy | Financial Investment |
| Increases in Extremely High Temperatures and Average Temperatures | Increases in peak load and extended summers affecting dispatch and demand-side management | Increased Operating Costs |
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Increased Operating Costs and Capital Expenditures |
| Decreases in power generation efficiency and output |
|
Increased Capital Expenditures | ||
| Restricted working hours due to heat hazards among recurring outdoor workers |
|
Increased Operating Costs | ||
| Changes in Typhoon Intensity and Track | Damage to power equipment, resulting in more users affected by outages and longer outage durations | Increased Operating Costs and Decreased Asset Values |
|
Increased Operating Costs and Capital Expenditures |
| Changes in Rainfall Patterns | Damage to power equipment caused by heavy rainfall | Decreased Asset Values |
|
Increased Operating Costs and Capital Expenditures |
| Extreme rainfalls or droughts caused by climate change affecting hydropower plant dispatch and operations | Increased Operating Costs |
|
Increased Operating Costs and Capital Expenditures | |
| Increases in Lightning Intensity and Frequency | Damage to transmission and distribution equipment, causing outages | Decreased Asset Values |
|
Increased Operating Costs and Capital Expenditures |
| Sea Level Rises | Damage to generation, transmission, and distribution systems and equipment due to storm surges or flooding | Decreased Asset Values |
|
Increased Capital Expenditures |
| Factor | Impact Description | Financial Impact | Response Strategy | Financial Investment |
| Adjustments in Policies and Regulations | Adjustment of Taipower's power planning in line with the government's 2050 net-zero pathway, 12 Key Strategies for Net-Zero Transition, and flagship carbon reduction action plans | Increased Operating Costs and Capital Expenditures |
|
Increased Operating Costs and Capital Expenditures |
| Increases in operating costs due to electricity emission factor controls and carbon fee collection | Increased Operating Costs |
|
Increased Operating Costs | |
| Adoption of Low-Carbon Technologies and Products/Services | Increases in costs due to the deployment of advanced energy technologies, such as ocean energy, geothermal energy, hydrogen/ammonia energy, and carbon capture and storage (CCS) | Increased Capital Expenditures and Operating Costs |
|
Increased Operating Costs and Capital Expenditures |
| Increases in costs due to replacement of transmission and distribution equipment with low-carbon products | Increased Capital Expenditures |
|
Increased Operating Costs and Capital Expenditures | |
| Project delays or additional resource inputs due to reliance on green energy talent and technical skills for low-carbon development | Increased Operating Costs |
|
Increased Operating Costs and Capital Expenditures | |
| Increase in Raw Material Procurement Costs | Increases in investment costs, delivery delays, and fuel costs due to short-term gas expansions and coal reductions, medium- to long- term hydrogen development, and rising demand for low- carbon fuels | Increased Capital Expenditures and Operating Costs |
|
Increased Capital Expenditures |
| Increases in raw material prices, construction costs for new facilities, and decommissioning costs due to carbon cost pass-throughs | Increased Capital Expenditures and Operating Costs |
|
Increased Capital Expenditures and Operating Costs |
| Factor | Impact Description | Financial Impact | Response Strategy | Financial Investment |
| Development of New Products and Services and Entry into New Markets | Develop and provide diversified green power products to expand domestic green electricity supply and support companies in meeting global supply chain requirements. | Enhanced Corporate Reputation |
|
Increased Operating Costs |
| Promote diversified services,such as time-of-use pricing,demand response, and energy conservation, to enhance corporate reputation or reduce costs. | Reduced Operating Costs and Capital Expenditures |
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Increased Operating Costs and Capital Expenditures | |
| Adoption of Low- Carbon Energy or New Technologies | Early investment in advanced energy technologies, such as ocean energy, geothermal energy, hydrogen/ammonia energy, and carbon capture and storage, to lead domestic technology development, reduce carbon emissions, and expand international cooperation opportunities. | Enhanced Corporate Reputation |
|
Increased Operating Costs and Capital Expenditures |
| Continue expanding low-carbon energy, such as wind, solar, hydropower, and gas-fired power, to increase the low-carbon electricity supply. | Enhanced Corporate Reputation and Reduced Operating Costs |
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Increased Capital Expenditures | |
| Enhancement of Power Supply Resilience | Enhance microgrid and ICT development to strengthen system resilience and future growth potential. | Enhanced Corporate Reputation |
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Increased Operating Costs and Capital Expenditures |
| Expand participation in the power trading market to support grid security and stability. | Enhanced Corporate Reputation |
|
Increased Operating Costs |
Climate Risks and Opportunities Analysis
Taipower references IPCC AR6 emissions pathways and IEA World Energy Outlook scenarios to assess climate impacts on its operations, infrastructure, and policy environment. From 21 identified short-, medium-, and long-term risks and opportunities, the Company prioritized 5 major physical risks, 3 major transition risks, and 3 major opportunities.
Identification, Analysis, and Assessment of Climate Change Risks and Opportunities
Metrics and Targets
In line with the seven TCFD metric categories, Taipower set indicators and targets to track climate management progress. The Company also systematically inventories GHG emissions to strengthen carbon management, mitigate risks, and support its low-carbon transition.
| Metrics Category | Metric | 2025 Results / Future Targets |
| Greenhouse Gas Emissions | Disclosure of Scope 1 and Scope 2 Emissions | Scope1 （Direct emissions）:88.48 million tCO2e Scope2 （Energy indirect emissions）:2.00 million tCO2e |
| Net GHG Emission Intensity of Thermal Power Units | 0.544 kg CO2e/kWh | |
| Physical Risks | SAIDI (System Average Interruption Duration Index) | 14.874 minutes per user-year; the 2030 target is 15.9 minutes per user-year |
| SAIFI (System Average Interruption Frequency Index) | 0.186 outages per user-year | |
| Automated Distribution Feeders | 10,157 feeders completed | |
| Transition Risks | Cumulative Installed Capacity of Gas-Fired Units in the Taipower System | 21,545 MW; target to reach 33,628 MW by 2030 |
| Grid-Connected Renewable Energy Capacity in the Taipower System | 22,144 MW; target to reach 47,245 MW by 2030 | |
| Renewable Energy Generation Share in the Taipower System | 12.7% (approx. 31.95 billion kWh); target to reach 24% (approx. 72.7 billion kWh) by 2030 | |
| Carbon Fee Expenses as a Percentage of Operating Costs | Carbon fee expenses accounted for 0.05% of operating costs in 2025. | |
| Climate- Related Opportunities | Pilot Site Development for Carbon Capture and Storage | The Taichung Power Plant Pilot Test Project:
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| Demand Response | Participation volume reached 3.66 GW. | |
| Introduction of Ammonia Co-Firing Technology / Introduction of Hydrogen Co-Firing Technology | The Linkou and Talin Power Plants ammonia co-firing demonstration and verification: preliminary feasibility study completed in 2025 | |
| The Hsinta Power Plant hydrogen co-firing demonstration and verification: 10% hydrogen co-firing by volume completed in 2025 | ||
| Capital Allocation | Power Grid Resilience Enhancement Plans | From 2022 to 2032, Taipower is promoting Distributed Grid Projects (NT$437.9 billion), Grid Reinforcement Projects (NT$125.0 billion), and System Defense Capability Enhancement (NT$1.69 billion). NT$208.9 billion had been invested as of 2025 |
| Gas Infrastructure Investment | Planned investment of approximately NT$1.2 trillion from 2011 to 2035; NT$365.18 billion had been invested as of 2025. | |
| Green Bond Issuance | NT$157.9 billion issued as of 2025. | |
| Internal Carbon Pricing | Internal Carbon Pricing System | Taipower has established an internal carbon pricing mechanism with reference to abatement costs, regulatory penalties, and market |
| Remuneration | Linkage between ESG Indicators and Performance Evaluation | Performance evaluations for senior executives include specific ESG performance indicators. |