Taiwan Faces Ten Days of 'Emergency' Due to Fire at Third Largest Power Plant; Power Shortage Concerns for TSMC and Others

Fire at Xingda Power Plant in southern Taiwan on the 9th [Capture by CNA. Reproduction and database prohibited]

Taiwanese media, including the United Daily News and China Times, reported on the 11th, citing sources, that a power shortage is feared for Taiwan Semiconductor Manufacturing Company (TSMC), the world's largest foundry (semiconductor contract manufacturing), and other entities due to a fire at a power plant in southern Taiwan.

The sources stated that the Taiwan Power Company (TPC) issued a 'Power System Alert Operation Notice' on the afternoon of the 9th following an explosion and fire at the Xingda Power Plant in Kaohsiung, southern Taiwan, at around 8 PM, according to this report.

This alert is issued when the reserve power supply margin is expected to fall below 6%, indicating an emergency situation.

The sources emphasized that the alert, initially scheduled from 1 AM to 11 PM the previous day due to the explosion, was extended to ten days, confirming the tight power supply and demand situation.

Another source explained that TPC has restarted Unit 5 of the Dali Power Plant in Kaohsiung, which was decommissioned in 2022, and has even mobilized diesel generators from the No. 2 and No. 3 nuclear power plants, which have completed commercial operation, to increase the reserve power supply margin.

Consequently, it was pointed out that there could be disruptions to the power supply in the Southern Science Park, where TSMC and other companies are located.

Tseng Wen-sheng, Chairman of TPC, stated in a preliminary investigation report the previous day that the fire occurred due to a liquefied natural gas (LNG) leak during the operational testing of Unit 2 of the Xingda Power Plant, which uses LNG.

He added that a separate power supply plan is in place for the Southern Science Park.

The Xingda Power Plant has a total generation capacity of 4,325 MW, accounting for 10% of Taiwan's total power generation, making it the third largest power plant in Taiwan.

Taiwanese media reported that the large-scale power outages on May 13 and May 17, 2021, and March 3, 2022, were all related to the Xingda Power Plant.

Taiwan's power generation relies heavily on thermal power, primarily using coal and gas, and its aging power grid is also considered a significant issue. In addition, the increasing power demand from advanced semiconductor companies, including TSMC, frequently leads to power outages.

Taiwan is pursuing policies to reduce the proportion of coal thermal power and nuclear power in its electricity generation structure and expand renewable energy. Former President Tsai Ing-wen of the Democratic Progressive Party announced upon taking office in May 2016 a plan to decommission all six nuclear reactors in Taiwan by 2025 and replace them with renewable energy sources.