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KMT, TPP Propose Air Pollution Control Act Amendments; MOEA Warns of Power Supply Risk

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The KMT and TPP have proposed amending the Air Pollution Control Act to mandate early retirement of coal-fired units. The MOEA estimates an impact of about 580 hundred million kWh in annual generation, with reserve margin rates in years 117 and 118 turning negative, affecting new power demand in the Central Taiwan Science Park and supply stability in the north and east.

Amendment Mandates Early Retirement of Coal-Fired Units

KMT legislators and the TPP caucus on the 10th proposed draft amendments to Articles 28 and 30 of the Air Pollution Control Act, directly mandating early retirement of coal-fired units and restricting retired coal-fired units from being converted to emergency backup. The MOEA said stable power supply concerns national security and industrial development, plant retirements already follow a set schedule, and hasty early retirement would severely impact supply stability, calling on all sectors to support maintaining the current provisions of the Air Pollution Control Act.

9.72GW Retirement to Impact 580 Hundred Million kWh

The MOEA noted that if 8 units at the Taichung Power Plant, 2 units at the Heping Power Plant, 3 units at Linkou, and 2 units at Dalin are forcibly retired, a total of 9.72GW of capacity would be retired, and the reserve margin rates in years 117 and 118 are projected to plunge into negative territory. The amendment would affect annual generation of about 580 hundred million kWh, exceeding last year's actual Taiwan-wide household electricity consumption of 510 hundred million kWh, covering about 14 million households.

Central Taiwan Science Park Expansion and North-East Supply Face Uncertainty

The MOEA said if existing coal-fired units are forcibly retired before the end of year 117, before the Phase 2 gas-fired units at the Taichung Power Plant come online, regional supply will be affected, and future new industrial power demand in the Central Taiwan Science Park may face difficulties. If the Heping Power Plant is retired early, the supply gap in the north-east region would reach 4.7GW, exceeding the 4.2GW interconnection limit of the north-west grid and increasing supply risks for Taipei City, Keelung City, Yilan County, and areas east of Banqiao in New Taipei City.

Backup Mechanism and Air Pollution Control Data

The MOEA explained that retaining retired units without demolition for emergency use helps maintain power system dispatch flexibility and national security response capability. Internationally, Japan includes eligible existing thermal units in backup reserves, and South Korea has delayed retirement of some coal-fired plants, balancing pollution reduction with energy resilience. Under the draft, if local governments fail to complete plant permit renewal reviews within 4 months, plants would immediately cease operation, which would not only limit supply dispatch flexibility but also increase the risk of industrial supply-chain disruption, affecting corporate investment confidence and expansion willingness. The MOEA noted that the share of coal-fired power fell from 45.9% in year 105 to 35.3% last year, coal consumption at the Taichung Power Plant fell by 6.73 million metric tons, overall air pollutant emissions last year fell by nearly 70% from year 105, air pollutant emissions at the Taichung Power Plant fell by 80%, and studies show the power sector accounts for only 2.3% of Taiwan-wide PM2.5 impacts, adding that air pollution control should balance environmental protection and power system stability.

FAQ

What does this Air Pollution Control Act amendment cover?

KMT legislators and the TPP caucus have proposed amending Articles 28 and 30 of the Air Pollution Control Act to directly mandate early retirement of coal-fired units and restrict retired coal-fired units from serving as emergency backup. The MOEA is calling for the current provisions to be maintained.

Why does the MOEA estimate reserve margin rates will turn negative?

If a total of 9.72GW — 8 units at the Taichung Power Plant, 2 at Heping, 3 at Linkou, and 2 at Dalin — is retired, affecting about 580 hundred million kWh in annual generation, the MOEA projects reserve margin rates in years 117 and 118 will plunge into negative territory.

What regional supply impacts are expected?

Future new industrial power demand in the Central Taiwan Science Park may be constrained, and early retirement of the Heping Power Plant would leave a 4.7GW gap in the north-east, exceeding the 4.2GW north-west grid interconnection limit and affecting supply in Taipei, Keelung, Yilan, and areas east of Banqiao.