Taiwan’s energy sector is entering a period of rapid transformation as the island works to balance rising electricity demand with ambitious decarbonization targets. With power consumption expected to climb steadily in the coming decade, Taiwan Power Company (Taipower) is investing heavily in new generation capacity and upgrading its thermal fleet to meet both reliability and environmental goals.

In its latest move, Taipower has awarded Mitsubishi Power, in partnership with Taiwan’s leading EPC contractor CTCI, a turnkey contract for the 2,800 MW Tung Hsiao Combined Cycle Gas Turbine (GTCC) Power Plant. The project calls for the supply and installation of five M501JAC gas turbines, along with steam turbines and auxiliary systems. Commercial operation is scheduled to begin sequentially from 2030 through 2031.

The Tung Hsiao upgrade forms part of Taiwan’s strategy to replace aging coal and oil-fired units with high-efficiency, lower-emission GTCC plants, a cornerstone of its energy transition roadmap. Natural gas is set to account for nearly 50% of the island’s power mix by 2030, and large-scale projects like Tung Hsiao are critical in securing this shift while ensuring grid stability.

For Mitsubishi Power, this contract strengthens its global J-Series and JAC fleet portfolio, which has already demonstrated high efficiency, operational flexibility, and reduced carbon intensity in installations worldwide. It also builds on the company’s proven track record in Taiwan, where it previously delivered three M501J turbines to Taipower.

By teaming with CTCI, Taiwan’s most prominent construction firm, the project leverages both advanced turbine technology and local execution expertise. Once operational, Tung Hsiao will rank among Taiwan’s most advanced GTCC facilities, significantly enhancing the island’s generation efficiency while supporting long-term energy security and decarbonization goals.