Taiwan's legislature on 12 January amended the Electricity Act, ending nuclear power generation in the country by 2025 and liberalizing the local electricity market. Taiwan currently has three operational nuclear power plants.
The amendments stipulate that state-run Taiwan Power Company (Taipower) must be privatised and a holding company will be set up to separate its business operations into independent electricity generation, distribution and sale business units within 6-9 years. The amendment also gives renewable energy priority on the grid and allows its direct sale from generators to users. Small renewable generators will be exempted from preparing operating reserves.
Currently all electricity has to be sold through Taipower. The government will establish an electricity price stabilization fund to prevent drastic fluctuations in electricity price. Electricity prices will remain unchanged in the first half of 2017 and the price formula will be recalculated later to adapt to rising fuel costs.
Nuclear power accounts for about 14% of Taiwan's electricity output. Plans to build a fourth unit were suspended following the 2011 Fukushima accident in Japan in March 2011.