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Ministry of Economic Affairs,R.O.C.

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2019-02-23 11:05
Bureau of Energy, Ministry of Economic Affairs
In response to the Energy Referendum result and the Requirement of Assurance of Power Supply Stability and Annual Reduction of Thermal Power Generation by 1% within the Statutory Period of 2 Years,MOEA has Announced the Outcome of the Evaluation
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MOEA held a press conference today (31) to promulgate the evaluation result of energy referendum. MOEA has conducted the evaluation according to the result of the referendum and on the basis of the evaluation, MOEA currently have no plans or timetable in  expansion of coal-fired generators, but will still be able to achieve the requirement of annual reduction of thermal power generation by 1% within the statutory period of 2 years in addition to the amendment of the Electricity Act.

MOEA indicated that this evaluation result is based on the results of three energy referendums at the end of last year (2018). As for the referendum No. 8, "Stopping any New Construction or Expansion of Coal-fired Power Plant or Generator", currently MOEA does not have any plan for new expansion of coal-fired power generator; as for referendum No. 16, "Abolition of Article 95 Paragraph 1 of the Electricity Act", MOEA has completed the legislative amendment process, and it has been promulgated that such provision has been invalid since December 2, 2018. This evaluation is mainly for determination of whether or not the referendum No. 7 "Gradually Reducing the Thermal Power Generation Volume via "At Least 1% Annual Reduction" can be achieved.

MOEA has further illustrated the comprehensive evaluations of achievement of referendum No. 7 from the aspects of supply and demand. The results of the evaluation are as shown below:
1. Annual reduction of thermal power generation by 1% can be achieved during the first 2 years (2019 and 2020) with stable power supply.
2. It will be difficult to continue with an annual reduction of thermal power generation by 1% starting from the third year due to the high ratio of thermal power generation (as high as 86% in 2017). By cause of the premises of annual reduction of thermal power generation by 1% and the continuous growth of power consumption, green electricity and nuclear power generation cannot be further increased, thus resulting in power shortage.

As for the nuclear power generation issue drawing significant concern of the society, MOEA has conducted a evaluation without predetermination in response to the result of the referendum. However, Unit 1 of Nuclear Power Plant No.1 has already entered the decommissioning phase. The license of Unit 2 will be expired in July this year, and it is too late to apply for license extension; the license extensions of units in Nuclear Power Plant No.2 and No.3 are facing four major difficulties, including overdue of application for license extension for Nuclear Power Plant No.2, objection by local government, lack of storage site for nuclear wastes, and lack of support by Congress on the budget for license extension given the objections by local government and legislators; the reactivation of Nuclear Power Plant No.4 will face many obstacles, including the resolution of the Legislative Yuan to abolish the project of Nuclear Power Plant No.4, the spare parts of digital safety instrument control equipment being unavailable, negotiation with original supplier on contract amendment, submission of application for reactivation to Atomic Energy Council (AEC), completion of Fukushima safety reinforcement/equipment assembly/test, and the re-examination of fuel rods by original supplier. It could take 6 or 7 years to solve all these problems. In summary, the license extension or reactivation of nuclear power generation will beset significant difficulties due to the lack of local support and feasibility based on objective conditions.

MOEA emphasized that, with the far less optimistic evaluation result of nuclear power and the limitations on coal-fired power generation, green energy and natural gas power generation will become the main power supply in the future. MOEA urges the public to fully support the various development projects of photovoltaic, wind power generation, gas power generator, and natural gas receiving station to have all projects completed in scheduled time without compromising the quality. Our government is currently heading towards our existing direction of energy transformation, and it can guarantee the stable power supply with 15 percent reserve margin and operating reserve of 10%. In the end, MOEA has called for efforts by all citizens to be dedicated to energy transformation, and all ministries, local governments, and all sectors in the society should also provide their support.
Spokesperson for Bureau of Energy, Ministry of Economic Affairs: Deputy Director General, Chun-Li Lee
Phone number: 02-2775-7702, 0936-250-838
Email: cllee@moeaboe.gov.tw

Professional work Contact: Division Head, Su-Chen Weng
Phone number: 02-2775-7710, 0910-087-942
Email: scweng@moeaboe.gov.tw

Media Contact: Inspector, Yu-Hsuah Hsia
Phone Number: 02-2775-7705, 0910-668-295
Email: yhhsia@moeaboe.gov.tw