Taiwan Power Company (Taipower) is a fully state-owned company headquartered in Taipei City. In 2020, its revenue was USD 24.7 billion and installed capacity was 35 GW. Taipower has a target to increase its renewable energy capacity by adding 4,000 megawatts (MW) of capacity by 2030. It does not have a fossil fuel phase-out plan yet.
The company has positive elements of management in the low-carbon transition. It has a transition plan, emission reduction targets for its thermal units and a 2030 renewable energy development target. However, the company did not make progress in emission intensity reduction from 2015 to 2020 due to its increased use of gas, even though its use of coal decreased slightly. The company needs to strengthen its efforts in reducing emissions from its fossil fuel assets. The company could conduct scenario analysis and set group-level emissions reduction targets to guide its business operations under the low-carbon transition.
Between 2015 and 2020, Taiwan Power’s emissions intensity increased by 8.6%, from 448 gCO2e/kWh in 2015 to 486 gCO2e/kWh in 2020. Furthermore, its emissions intensity is projected to decrease by around 1% between 2021 and 2025. This reduction is not aligned with the company’s 1.5°C pathway, which requires a 6% reduction. It is projected to exceed its carbon budget by 53% in 2035. To remain within its carbon budget, the company needs to accelerate the decline in electricity production from fossil fuel assets.
Taiwan Power receives a trend score of -. If the company were reassessed in the near future, its score would likely decrease. To align with its 1.5°C pathway, the rate at which Taipower’s emissions intensity is projected to decrease between 2021 and 2025 should be six times higher. The company has made limited progress in emissions reduction due to its reliance on fossil fuel energy. It has a plan to increase low-carbon electricity by 2030, but it also needs to enhance progress in reducing emissions from fossil fuel assets.
Taiwan Power has a target to continue its investment in renewable energy development until at least 2030, when renewable energy capacity will have reached a target of 4,000 MW. It also has an emission reduction target to reduce emissions from its thermal unit.
The company currently has 8% nuclear, 5% hydropower and 5% other renewable capacity, and it also buys 14% renewable capacity from other companies. It has a plan to invest TWD 418 billion (USD 15 billion) in renewables during 2015-2030.
The company has a detailed transition plan with targets for low-carbon electricity portfolio development and emissions reduction. However, due to its reliance on fossil fuel energy, progress in emissions intensity reduction was lacking from 2015 to 2020.
Just Transition Assessment
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