Taiwan Power Company, or Taipower, is expected to report approximately NTD 60 billion ($1.9 billion USD) in profit for 2025, marking a significant turnaround from years of losses. While statistics for December have not yet been released, profitability for the full year appears certain.
Though this development relievesTaiwanese taxpayers from subsidizing the state utility's financial deficit, the underlying cost structure reveals deeper challenges with the country's domestic energy transition.
The profit milestone comes after the ruling Democratic Progressive Party government requested 100 billion TWD ($3.1 billion USD) in additional subsidies for Taipower in 2024. Opposition parties blocked this funding request, resisting government warnings that rejection could force electricity rate increases or compromise the utility's financial resilience.
Energy policy experts suggest the profit margin indicates Taipower's financial situation may be more stable than previously claimed, raising questions about the necessity of the proposed subsidy.
The utility's accumulated losses ofNTD 348.4 billion ($10.8 billion USD), combined with an estimatedNTD 300 billion ($9.3 billion USD) write-off required for the abandoned Fourth Nuclear Power Plant, represent the government's primary financial concerns. The treasury has already provided overNTD 300 billion ($9.3 billion USD) to Taipower through capital increases and subsidies in recent years, while electricity rates have risen approximately 40 percent.
Analysts suggest the 2025 profit represents an operational equilibrium point that should sustain normal utility functions without additional taxpayer support, particularly given the government's role in creating current financial challenges through its energy transition policies.
Taiwan's energy transition strategy centers on nuclear phase-out and renewable energy expansion, replacing lower-cost nuclear power with higher-cost green alternatives. Taipower inadvertently revealed the financial impact of this policy shift when discussing December 2025 results.
According to Taipower officials, December offshore wind generation will significantly impact annual profitability: "The more electricity generated by offshore wind, the greater our expenditure increases. December alone resulted inNTD 13 billion ($403 million USD) in losses the previous year, and we expect December 2025 to show losses as well."
The utility must purchase offshore wind electricity at rates substantially higher than retail prices, creating guaranteed losses duringperiods of peak electricity usage. Taiwan's offshore wind farms generate most electricity during autumn and winter months, while summer periods in the Taiwan Strait often produce minimal wind generation, with capacity factors frequently dropping below one percent or reaching zero.
Cost analysis reveals significant disparities between energy sources. Nuclear power generation costs average NTD 1.42 ($0.044 USD) per kilowatt-hour, while coal and natural gas cost approximatelyNTD 3.43-3.44 ($0.106-0.107 USD) per kWh. Wind and solar power purchased from private developers costsNTD 5-6.5 ($0.155-0.201 USD) per kWh.
Industry calculations suggest that continued operation of Nuclear Plants 1, 2, and 3 would generate 40 billion kWh annually, while completing Nuclear Plant 4 could add another 20 billion kWh. The transition from nuclear to renewable sources increases Taipower's annual costs by 180-300 billion TWD ($5.6-9.3 billion USD).
Energy economists note that without the nuclear phase-out policy, Taipower's 348.4 billion TWD accumulated deficit could be eliminated within one to two years, removing the need for rate increases or government subsidies. Much of the accumulated losses occurred during the Russia-Ukraine conflict when international fuel prices surged, compounded by increasingly high-cost renewable energy procurement.
While Taipower's return to profitability marks progress, analysts warn that sustained profitability remains uncertain due to volatile international fuel prices and expanding renewable energy costs. Experts suggest a comprehensive energy policy review may be necessary to establish stable utility finances and eliminate accumulated losses without relying on subsidies or rate increases. （Related： Opinion | Promises of Overseas Investment Risk Taiwan's Strategic Autonomy ｜ Latest ）
