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Taiwan Photovoltaic Sustainable Association (TPiSA) Refutes Claims That Solar Power Causes Taipower’s Deficit

Release Date : 2025-03-25

The Taiwan Photovoltaic Sustainable Association (TPiSA) stated today (25th) that with the recent discussions on electricity price hikes, public scrutiny has turned to Taipower’s massive financial losses, with some attributing them to the "high cost" of purchasing green energy. However, TPiSA emphasized that solar power is not responsible for Taipower’s deficits, as 98% of solar energy is sold to private enterprises rather than Taipower.

TPiSA explained that Taiwan’s electricity supply remains heavily reliant on imported fossil fuels, which account for approximately 80% of total power generation. The sharp increase in fossil fuel costs, driven by the Russia-Ukraine war, is the primary reason behind Taipower’s financial struggles. According to Taipower’s financial reports, solar power accounts for less than 5% of total electricity, and in 2024, Taipower’s green energy procurement expenditures were under NT$1.5 billion, an insignificant portion of its total spending. Thus, blaming solar power for Taipower’s losses is misleading.

Moreover, Taipower's solar power purchase rates have been decreasing annually. In 2025, the feed-in tariff for ground-mounted solar power will be approximately NT$3.5 per kWh, nearly the same as the average grid electricity price of NT$3.4 per kWh. Consequently, solar energy providers have largely shifted away from selling power to Taipower and are instead prioritizing sales to semiconductor companies in urgent need of renewable energy.

According to TPiSA, over 98% of large-scale ground-mounted solar power projects currently supply electricity to private enterprises rather than Taipower. The only exception is solar plants built on state-owned land, where contracts mandate power sales to Taipower. Generally, most large-scale solar energy providers prefer selling to private companies, as Taipower offers lower purchase rates.

Taiwan’s economy is export-oriented, with semiconductor giants such as Apple, Google, and NVIDIA joining the RE100 initiative, which requires the use of renewable energy. To meet the sustainability demands of these global tech leaders, Taiwan’s semiconductor industry must adopt renewable energy, making its demand for green power the highest among all industries in the country.

TPiSA highlighted the urgent need for renewable energy among RE100 companies, including semiconductor firms, as demand currently far exceeds supply. However, the limited expansion of grid-connected solar power plants and the slow progress of offshore wind energy projects have delayed semiconductor companies in reaching their RE100 targets, leading them to seek greater support from both the government and solar power providers. Currently, more than 90 electricity retailers in Taiwan are actively facilitating corporate solar energy procurement.

As a result, large-scale solar power plants prioritize supplying RE100 companies, while only smaller rooftop solar projects or older ground-mounted plants (built four to five years ago with higher feed-in tariffs) continue selling power to Taipower.

Regarding the small portion of surplus electricity sold to Taipower, TPiSA explained that the process of obtaining an electricity sales license after grid connection takes over a year. During this waiting period, a temporary portion of power is sold to Taipower. However, this amount is minimal and is sold at a rate significantly lower than Taipower’s renewable energy retail price of NT$6.1 per kWh.

Additionally, businesses that do not operate 24/7 may generate excess power during specific 15-minute intervals, which is then received by Taipower.

The psychological impact of rising electricity prices is far greater than the actual financial burden. Over the past year, the prices of goods and housing have surged, with property values more than doubling in many areas. Meanwhile, the average monthly electricity bill per Taiwanese household remains under NT$1,000. Compared to fluctuations in the stock market or mortgage interest rates, the impact of electricity price adjustments on living costs is relatively minor.

For the public, electricity bills account for only a small fraction of monthly expenses, and concerns over price hikes should not be overstated. Renewable energy has become a critical asset for supporting Taiwan’s global business expansion, and TPiSA urges the public to avoid spreading misinformation.

Taipower Chairman Tseng Wen-sheng recently stated that in the past year, Taipower purchased approximately 330 million kWh of solar energy from major providers, including J&V Energy, INAEnergy, SHINFOX ENERGY, and HD Renewable Energy, for a total expenditure of only NT$1.2 billion.

Source: https://www.rti.org.tw/news/view/id/2236076
Written by:  Tai Sounds
Date: 2025.3.25