Under the Electricity Act took effect on January 26, 2017, Taiwan Power Company is required to make energy forecasting according to the supply and demand load announced by the electrical regulatory authority to comply with the statutory reserve margin capacity obligation. As for the outsourced electricity, the procurement of electricity should be proceed from the Government Procurement Act. However, the amendment to the Electricity Act is only open to the renewable energy to directly or transfer supplied to consumers. It is expected to allow thermal power plants to provide electricity to customers directly associated with the well complementary measures, regulations set up and mature market, but the uncertainty to complete the electricity transformation is still high. Assuming the contract duration between independent power producers and Taiwan Power Company are ten years, it may causes the difficulties in financing for the independent power producers and make them exited the bidding market. In this case, could affect Taiwan Power Company to statutory reserve margin capacity obligation.
Based on the above research topics, this study aims to search the period and factor for power purchase agreement for independent power producer at domestic and foreign experiences and the impact of contract period on independent power producer financing. Further, to assess the optimal period for power purchase agreement between Taiwan Power Company and independent power producer. Providing Taiwan Power Company as a reference of the power purchase agreement contracts.