Abstract Electricity is an indispensable power in our modern life and it has an important impact on our daily life and the development of a nation¡¦s economy. Traditionally, it has been controlled and protected by the government, thus it has caused the power producers pay no attention to cost and efficiency. Through the electric power industry liberalization, the market will have more competition and it can increase the efficiency in management. The foundation of the electric power industry liberalization is the industry structures and market systems. Different industry structures will have different market systems thus producing different impacts in electric power industry. The power producers must use different strategies regarding to different management and circumstances to insure their best interests. The main purpose of this paper is to discuss the circumstances and structures of electric power industry in Taiwan, This paper also talks about the strategies under different electric power market systems and management from the viewpoints of independent power producers. The power producers in Taiwan are in a difficult situation. Under the development of electric power industry liberalization, the government must consider the conditions of power producers, therefore, the authorities must speed up making rules and regulations and establishing electric power market systems. The government needs to set up a fair competition and efficient environment. Take the consideration of their own benefits, the independent power producers might use the following strategies: Build up less pollution facilities to reduce the cost of electricity. Borrow money from banks to increase the price of electricity. Using the strategy of bidding to gain more profits. Keywords¡GElectric power industry liberalization,Electric power industry structure,Independent power producer,Strategy