1. Reconstruction (1945-1953) – Mainly based on hydro During the Second World War, Taiwan's industry and infrastructure sustained serious damage. In the period immediately following the war, tremendous effort was committed to repairing and reconstructing the island's economy and infrastructural capacity. During the period, the Taipower Company was established on May 1, 1946. By 1953, the installed capacity had reached 363 MW and was composed of primarily of hydro (93.7%) and thermal (6.3%) power generation. The power system had entered a period of being "mainly based on hydro." 2. Expansion (1954-1965) – Placing equal stress on hydro and thermal In 1962, thermal power generation had proportionally exceeded hydro power. This marked the beginning of a period of "placing equal stress on hydro and thermal" power. 3. Highly-Developed (1966-1974) – Mainly based on thermal, partially based on hydro Following the mid-1960s, Taiwan’s industry quickly blossomed and power consumption increased sharply. The Taipower Company developed a large-capacity through high- efficiency thermal power. The power system had entered a period of "mainly based on thermal, partially based on hydro." In terms of power transmission and substation systems, a 345 kV ultra-high voltage transmission line with a total length of 330 circuit kms was completed to improve transmission capacity and stabilize the power supply. 4. Nuclear Power (1975-1985) – Energy diversification During the 1970’s a series of oil crisis significantly increased the cost of fuel. In response, the government's energy policy shifted, in 1974 and again in 1980, to a focus on diversified sources of power generation. In particular, nuclear power generation was promoted, and three nuclear power plants were completed by 1985. During this period, the installed capacity reached 5144 MW. With the addition of both nuclear power plants and more large-capacity, high-efficiency thermal power units the power system entered a period of "energy diversification." 5. Balancing Power Supply and Demand (1986-1993) – Demand side management As economic growth continued, Taipower increasing faced a diminishing reserve capacity. This led to a period (1986 - 1990) of building large-scale, thermal and hydro plants, implementing time of use rates, interruptible power and energy conservation, and encouraging cogeneration. In order to balance power supply and demand, the power system entered a period of "demand side management". 6. Open Power Generation (1994-2006) – Opening power generation to private enterprises Since the 1990s, liberalization of the electric industry has gradually become a global trend. During this period, Taiwan had both a high population density and continued rapid growth of power consumption and development. In following global trends, the government permitted the construction of private power plants in order to accelerate power development. As such, Taiwan’s power generation market had entered a period of "open power generation." 7. Energy Conservation and Carbon Reduction (2007-Present) Since 2006, international fossil fuel prices have risen rapidly. This has seriously affected the power industry. Taiwan is primarily an importer of fuel, and in order to ensure the sustainable development of its power industry, a new strategy was required. As a result, low-carbon power is being developed on the supply side, while energy conservation and electricity efficiency is being promoted on the demand side. Taiwan's electricity market has now entered a period of "energy conservation and carbon reduction."
