Management and Effectiveness of Energy Production and Sales
Fuel Supply Security Management
To cope with the fluctuation of international fuel prices, the measures adopted and their achievements in terms of cost reduction are as follows:
■ Steam Coal and Shipping
①Distributing supply sources to ensure the supply security, ②Optimizing supply security and scales of economy, ③Purchasing directly from coalmine owners, producers or the wholly-owned sales company of owners or producers for term contracts, ④Maintaining proper ratio of spot market procurement, ⑤Enlarging the size of coal vessels and adopting the best dispatch measures, ⑥Enhancing competition in the tendering process, ⑦Entering the market in the appropriate time, and ⑧Applying properly the term contracts to flexibly adjust the delivery quality. In 2011, compared with international market prices, the cost savings in coal procurement and shipment were NT$7.411 billion and NT$1.358 billion, amounting to a total of NT$8.769 billion.
■ Fuel Oil
Based on the WTI (West Texas Intermediate) international crude oil price index, in 2011, the annual average price was US$94.86/barrel. The company adopted the following measures to reduce expenses: ①Strengthening domestic bidding competitions, ②Consolidating the purchase of diesel oil into one single contract, ③Relaxing the quality specification for imported fuel oil, and ④Monitoring closely fuel oil requirements to avoid an unexpected need for importation.
In 2011, the expenses of fuel oil procurement were reduced by NT$0.139 billion.
■ Natural Gas
In 2011, owing to the recovery of the economy, the domestic load demand was drastically increased. The actual consumption reached 6.82 million tons. As the company had proper control of domestic load demand and made timely LNG procurement of the needed amount, an extra purchase of 0.52 million tons was made for the Tatan Thermal Power Plant to replace fuel oil in power generation. NT$6.1 billion in costs were saved by such measures.
■ Nuclear Fuel
①Monitoring uranium market status to flexibly adjust the timing and quantity for uranium spot purchase, ②Applying flexible delivery quantity under term contracts for uranium and other nuclear fuel processing services, ③Optimizing tail assay of the enriched uranium, and ④Pursuing reasonable ceiling prices under uranium term contracts. In 2011, the cost saving on nuclear fuel procurement was NT$1.123 billion.
Gneration System Improvement and Operational Safety
■ Operational Safety of Thermal Power Units
● Formulating “Maintenance Strategy for Key Components”, “Operation Working Standards”, “Maintenance Working Standards” and various “Maintenance Guidelines” to perform operation and maintenance work.
● Setting up an operators’ licensing system and a retraining mechanism.
● Dispatching personnel to take part in the “Full Flow Loop Training” to cultivate good working habits.
● In 2011, the total thermal efficiency reached 42.51% (LHV gross), the second best record in Taipower’s history.
■ Nuclear Power Operational Safety and Performance
In order to promote the nuclear safety of the nuclear power plants, Taipower initiated its nuclear safety culture reinforcement project in full force in 1998. This project is being carried out to establish the safety consciousness in daily life for each employee and contractor working at the NPPs, resulting in improved operation performance.
The nuclear accident at the Fukushima Daiichi Nuclear Power Station is considered as a beyond-design-basis accident. Learning from the accident, Taipower has reviewed the current design bases and also evaluated the possibility of improving the defense capabilities of Taipower’s NPPs against seismic events and tsunami to better cope with compound disasters and plan out short/mid-term safety related action items.
On June 30, 2011, Taipower completed 11 short-term safety- related action items, structural seismic analysis for key buildings in nuclear power plants, near-site coastal and on-site geomorphological investigations, and the review of tsunami-related design basis in the Final Safety Analysis Report (FSAR) as well as a safety review of nuclear facilities. Furthermore, the disaster protection drills based on a scenario similar to the Fukushima incident in Japan were conducted at each plant by August 4, 2011.
Several items for improvement and response actions for reducing the damage of a tsunami were planned out based on the results of the safety assessment. These items will be implemented according to the planned schedule to effectively improve the disaster-protection, disaster- reduction, and disaster-rescue abilities of NPPs in Taiwan. Taipower has actively attended international nuclear conferences to obtain the real- time information from key nuclear countries and nuclear organizations. All the important information will be funneled into Taipower’s nuclear safety assessment program to promote the safety protection capacity of all the nuclear power plants in Taiwan.
Power Transmission and Power Supply Systems
■ Upgrading Power Supply Quality and Reliability
Providing customers with high-quality power, and pursuing a more reliable and stable power supply are always the company’s major performance targets. There are two important indexes for power supply reliability: SAIDI (System Average Interruption Duration Index) and SAIFI (System Average Interruption Frequency Index). In 2011, the SAIDI was 18.224 min./customer-year and SAIFI was 0.204 freq./ customer-year. Both were the second best records in Taipower’s history.
To strengthen the stable power supply operation for 345 kV and 161 kV transmission lines in order to avoid large-scale power outage, the company established the “Power System Stability and Reliability Improvement Task Force” to continue follow-up and improvement tasks to ensure the stability and reliability of the power system. Meanwhile, the special protection system (SPS) was adopted to protect the operational safety of the power system. In order to ensure the safety of facilities and upgrade power supply reliability, the company conducts retrofit and new- built work on substation and transmission facilities every year.
In 2011, the facilities that underwent retrofitting or new construction were: 75 units of transformers, breakers, etc., 190 transmission towers, 25.749 ckt-km of overhead transmission lines, 116.368 ckt-km of ground lines, and 46.832 ckt-km of overhead transmission lines that were changed to underground cables.
■ Improving Measures for Power Supply Quality in High-tech Science Parks
Taipower established the “High-tech Industrial Park Power Quality Management and Improvement Task Force” to integrate relevant measures for upgrading power supply quality in science parks. In science parks in 2011, the average SAIDI was 0.099 min./customer-year and SAIFI was 0.014 freq./customer-year. Both were lower than the previous year’s figures and the best records in Taipower’s history. The company will continue to devote itself to power grid enhancement and preventive maintenance work to provide sufficient and high-quality power supply to science parks.
Power Distribution and Sales Systems
■ Installation of distribution lines
To fulfill the actual needs of the annual load growth and to increase power distribution reliability and power supply quality, Taipower launched various distribution projects. As of the end of 2011, the total length of distribution lines reached 339,624 ckt-km.
■ Feeder automation
Taipower has been implementing feeder automation projects since 1995. These projects are carried out so that the information of distribution network operation can be collected through the feeder automation system (the SCADA, the supervisory control and data acquisition system), thereby acquiring real-time information on the operation status. When a fault occurs, the automation system provides the fault isolation and service restoration functions commanded from the dispatchers of the control center, which can effectively reduce the outage time and range. In 2011, the number of newly expanded feeders reached 1,574. Up to the end of 2011, the total number of feeders being automated reached 6,351 or 68% of the total. The outage duration was reduced from 60 minutes to less than 5 minutes for the feeders being automated.
To balance the system load, sufficiently utilize off-peak power, and shift or reduce peak hour consumption, since 1979 Taipower has instituted load management measures including: time of use rates (TOU), reduction of power consumption, seasonal rates, preferential rates for ice storage central air-conditioning systems, and preferential rates for duty cycling control of air-conditioning, etc. In 2011, the peak load was reduced by 4,883 MW.
In order to raise the system dispatch flexibility and reliability, a “Demand-Response Program” was started in 2008. The reduced capacity of the contacted customers can be included into the reserve margin for emergency dispatch. In 2011, the total contracted capacity reached 17 MW.