Taipower sees coal consumption easing to 21 million tonnes in 2026

By Dominikus

Taiwan Power Company (Taipower) estimates that coal consumption will decline to around 21 million metric tonnes in 2026, slightly lower than the previous projection of 22 million tonnes cited by Sam Hung, Director of Taipower’s Department of Fuels, during the CT Asia conference in Bali last September. The updated estimate was published on January 22 in the coal procurement section of Taipower’s official website.

Coal-fired power generation accounted for about 31% of Taipower’s total electricity output in 2025, positioning coal as one of the utility’s lowest-cost power generation sources. To meet future electricity demand while improving efficiency and reducing carbon dioxide emissions, Taipower is developing new ultra-supercritical coal-fired units to replace older facilities.

The projection broadly aligns with data previously disclosed by Taipower, which indicated that total coal procurement was expected to remain steady at around 22 million tonnes annually through 2025 and 2026, before declining slightly in the following years as the company gradually shifts toward natural gas and renewable energy.

Read also: Taipower cuts coal imports from Indonesia and Australia

Indonesia and Australia have traditionally dominated Taipower’s coal supply, each previously accounting for nearly half of total imports. However, their shares have declined in recent years. Indonesia supplied 10.62 million tonnes, or 42.3%, of Taipower’s coal imports in 2023, while Australia provided 12.51 million tonnes, or 49.8%. In 2024, Indonesia’s share increased to 11.14 million tonnes, or 46.1%, while Australia’s contribution fell to 10.52 million tonnes, or 43.5%. For 2025, Indonesia is expected to supply about 9.6 million tonnes, or 44%, while Australia’s volume is forecast at around 7.9 million tonnes, or 36%.

Other coal suppliers include Colombia, South Africa, and Kazakhstan. Taipower sources both bituminous and sub-bituminous coal, applying coal blending practices that combine high-calorific-value coal with low-ash coal to improve combustion efficiency and meet environmental standards.

As a state-owned enterprise, Taipower conducts all coal procurement under Taiwan’s Government Procurement Act through open international bidding. Long-term contracts account for around 75% to 85% of annual coal purchases, with the remainder sourced through spot tenders.

Taipower currently operates installed power generation capacity of more than 32,000 MW. Its fuel mix is dominated by natural gas at around 43% and coal at 33%. In terms of electricity output, natural gas accounts for about 52% of annual generation, while coal contributes around 34% of total generation, which exceeds 172 terawatt hours per year.

Coal is expected to remain part of Taipower’s generation mix in the short term, although its share is projected to gradually decline as the utility accelerates its transition toward cleaner energy sources.

Editing by Reiner Simanjuntak