Among the large-scale international sustainable development conferences related to sustainable development held around the world every year, the "United Nations Conference of the Parties on Climate Change (COP)" is undoubtedly one of the most noteworthyeye-catching focuses. The 28th Conference of the Parties (COP28) be held at the end of 2023 wasis the first to review time the carbon reduction performance and gaps of each country was reviewed since the Paris Agreement was signed. While It has been somewhat affected by the escalating geopolitical conflicts, . However, the conference produced the first preliminary results for the first time to conduct a global inventory of the carbon reduction process, and achieved goals for the energy transition. The conference’s three major consensuses, including a doubling of global renewable energy by 2030, doubling energy efficiency and transitioning away from fossil fuels through a fair, of orderly and equal transformation, are were still a big step forward for the world on its journey the path towards mitigating the climate crisis. In order to aligncomply with the aforementioned international trends and comply with the energy transformation policy of the government, Taipower has adopted strategies to expand green energy, relegate duce the use of coal to a backup and while bridging to gas usebridging, and at the same time promote net-zero emissions from electricity in stages from the supply side, power grid side and demand side. In addition, iIn order to meet the imperative of ensuring needs ofa stable power supply, the Company is it also strengthening s the resilience of the power grid and further buildings power facilities while creating ecological co-prosperity.
Moving Towards Net- Zero Emissions and Accelerating Green Transition
Taipower is following the government's net-zero transition pathway. In terms of planning for future energy supply and demand, Taipower the Company considers three major trends that are affecting of changes power demand: driven by economic growth, the transformation and electrification of all aspects of society, and the zero- carbonization of the power supply. Underlying all of these considerations is the need to in planning to ensure a stable and sufficient energy supply of electricity source of electricity. On the supply side, in addition to devoting itself to the development of renewable energy, Taipower is also actively promoting the a carbon reduction transformation of at its thermal power plants. Simultaneously, the Company is conducting technological research on converting low-carbon energy into zero-carbon energy through approaches such as carbon capture, utilization and storage technology for gas-fired units, and working with major international manufacturers such as Siemens, Mitsubishi, IHI, and GE through memorandums of cooperation to conduct demonstrations and related technical exchanges for gas-fired / hydrogen and coal-fired / ammonia power generation, as well as other new energy applications in existing generator sets. Taipower is also cooperating with Academia Sinica on decarbonized hydrogen-burning technology. In terms of practical promotion, the demonstration target of 5% hydrogen co-firing in gas units at the Hsinta Power Plant has been achieved. In the future, the proportion of hydrogen will be gradually increased to continue effectively reducing carbon emission as technology progresses from mixed firing to dedicated firing. On the power grid side, Taipower is continuing to promote the integration of renewable energy into the grid. This will necessitate the ongoing introduction of smart grid technology, and the strengthening of the grid's resilience. On the demand side, energy storage will be added and grid construction measures will be taken in addition to planning various energy-saving initiatives, such as those proposed for energy conservation, modified consumption and diagnosis. Time of use rates are also used to smooth the load gap between peak and off-peak hours. All of these diverse measures are illustrative of the Company’s multi-pronged approach to building a net-zero electricity emissions blueprint for 2050.
Implementing Power Grid Upgrades and Realize the Blueprint for Resilience
In response to the threat of extreme weather and the growing share of total generation provided by renewable energy, Taipower has proposed a ten-year Construction Plan for Enhancing Power Grid Resilience". With a total budget of NT$564.5 billion in 2022, the plan focuses on dispersion of key equipment to reduce the risk of power grid concentration, strengthening to improve safety and stability, and defense against the spread of blackouts to avoid widespread failures. Together the plan’s three points of focus will improve the resilience of the power system in all aspects. The plan further entails 10 major strategies and is divided into three stages of 2 years, 5 years, and 10 years. As of the end of December 2023, 22 sub-projects have been completed, mainly focusing on power grid construction. These include new transmission lines, substation facilities, and energy storage systems, as well as the renewal of existing substations. The completion of these projects has helped to decentralize the power gridpower supply risks, reducing cross-regional power transmission, and providing capacity for growing domestic and commercial power consumption.
The growth in renewable energy has also created an urgent need to allow private, renewable energy to be smoothly connected to the grid. Taipower is complying with the Renewable Energy Development Act by actively implementing projects that strengthen renewable energy grid connection and facilitate the effective use of renewable energy in hotspot counties and cities with development models and concentrated sites that have potential. In addition, the Company is supporting industrial development by adding power distribution nodes that can directly supplied major electricity users, such as industrial parks. Taipower anticipates that its development of a more complete power grid environment will meet the electricity needs of high-tech parks and the public so that the development of sustainable energy can be accelerated.
Constructing Power Facilities and Promote Ecological Integration
As Taiwan's main electricity supplier, Taipower is actively facing the issues of energy transition and net-zero emissions. Yet, the Company is also actively developing strategies and actions for the sustainable development of Taiwan’s ecological environment. In developing power sources, Taipower adheres to the principle of "minimizing damage, maintaining the original landscape and native species." The Company consequently carries out ecological inventory taking and planning for regions, building power facilities that are integrated with the local ecology, helping to maintain biodiversity, and practicing ecological conservation. Taipower has completed surveys of ecological resources at five potential sites for power plants and is gradually implementing related ecological conservation plans. As of 2023, Taipower completed the installation of bat nest boxes at the Taixi Wind Power Plant. The Company has also developed a patent for water level control at the Kaohsiung’s Hsinta Power Plant that will help transform the Yongan Wetland into a bird paradise. The Dajia River Power Plant’s combination of water and land ecological protection and restoration led to the awarding of Ministry of Environment certification as an environmental education facility certification. Since biodiversity is the foundation of human survival, environmental protection has attracted public attention and become an important social responsibility that Taipower is committed to fulfilling.
Furthermore, as global warming intensifies and abnormally high temperatures occur more frequently in Taiwan, students in remote schools face the challenge of studying in hot summer conditions due to economic constraints. Since 2020, Taipower has supported the government's "Air Conditioning for Every Classroom" policy. In 2022, following just over a year of work and overcoming various difficulties, Taipower completed power improvement projects, air conditioning installations, energy management systems (EMS), and the installation of rooftop solar power generation equipment for nearly 3,500 schools across Taiwan. Through these tangible actions, Taipower contributes positively to society and enhances its social impact.
In its role at the helm of the domestic energy industry, Taipower is actively connecting the energy industry to the ESG issues faced in corporate operations, and the United Nations Sustainable Development Goals (UN SDGs). The Company is seeking to be eco-friendly at a reasonable cost, while providing the stable power required for the diverse development of society. In the future, Taipower will continue to follow climate risks and conduct climate change impact assessments, promote its Task Force on Climate-related Financial Disclosures (TCFD) and increase its transparency through the Sustainability Development Committee and corresponding working groups, and value diversity, equality, and inclusion (DEI). The Company will use specific action plans and measurement indicators to guide the direction of the its business strategies, in order to align its operations with both the UN SDGs and the "Taiwan Sustainable Development Goals" (T-SDGs), and to gradually achieve the goal of sustainable development.
