Friday 25 August 2017

Taiwan Power Outages Disrupt Some Semiconductor Manufacturing

A blackout caused by a blunder at Taiwan’s biggest gas-fired plant is the latest challenge to an electricity grid recently pushed to its limit and to President Tsai Ing-wen’s efforts to reshape the island’s power mix.

A combination of unusually hot weather, infrastructure damage from typhoons and Tsai’s drive to abandon nuclear power left Taiwan barely able to supply sufficient electricity to residential and business users in the past week. That balance gave way just before 5 p.m. Tuesday when the Tatan power plant, which accounts for almost 9 percent of the island’s generation capacity, stopped after workers accidentally shut off its natural gas supply.

Tsai publicly apologized for the power outage that hit more than 6 million households and disrupted some semiconductor production. Electricity was restored by 10 p.m., but not before Lee Chih-kung, Tsai’s economy minister, offered his resignation. Both the operator and supplier of the plant, Taiwan Power Co. and CPC Corp., are state-run.

“The outages hurt President Tsai’s creditability,” Jeffrey Bor, economics professor at Chinese Culture University in Taipei, said by phone. “The impact on the economy is comprehensive. It’s like sending a signal to companies to escape fast, because of the risks of electricity supply disruption.”

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