Taipei: Minister of Economic Affairs Kung Ming-hsin stated that coal-fired power generation might be utilized as a "last resort" in the event of a natural gas supply challenge due to the ongoing conflict in the Middle East. This statement comes amidst Taiwan's efforts to manage its energy resources carefully.
According to Focus Taiwan, the Minister emphasized that March falls within Taiwan's air pollution control season. Consequently, if coal-fired power generation becomes necessary, authorities would postpone any action until April when restrictions are less stringent. During a meeting with industry groups, Kung highlighted that if scheduling difficulties arise with the natural gas supply, activating backup coal-fired generating units would be considered a last resort.
Taiwan's current energy supply remains stable for March, as the nation's oil reserves exceed 100 days, with natural gas inventories also above the legal minimum of 11 days. The situation for April will be closely monitored through daily meetings led by Vice Minister of Economic Affairs Lai Chien-hsin. Taiwan receives approximately 30 natural gas carriers monthly, including about 10 from the Middle East. In case of changes in circumstances, authorities are prepared to seek alternative gas sources.
The government has devised three measures to address potential supply issues. These include coordinating with the United States and Australia to expedite the delivery of long-term contracted gas shipments to April. Another strategy involves coordinating shipment schedules with neighboring countries like Japan and South Korea, although this may prove challenging due to regional competition for gas supplies. Taiwan may also consider purchasing gas on the spot market, with daily assessments determining the feasibility of such purchases.
Kung further noted that Taiwan has existing mechanisms to manage the impact of rising international oil prices. Decisions regarding electricity price adjustments are ultimately made by the electricity rate review committee. State-owned enterprises have a responsibility to stabilize prices, ensuring that prices do not fully mirror market fluctuations. Price coordination will be managed through a liaison mechanism between CPC Corp. and Taiwan Power Co.