-¢» Power libralization & Privatilization of power industry have become a worldwide trend in the recent years. To cope with the problems of power shortage and power development, ROC government began the libralization of power generation in 1995. Fifteen IPPs(independent power producers)were acceped to build power plants, through open bidding of phase 1& 2 and current phase, a total of 13210 MW of new capacity. However 7of them were cancelled due to the diffculties of land acquisition. By the end of 2001, Taipower has signed Power Purchase Agreement with 8 IPPs, totaling 7220MW. Amount them, Mailiao units #1¡B#2& #3 and Everpower units #1& #2 started commercial operation respectly from the beginning of 1999 , totaling about 2700MW. Those new competitor have great impacted on Taipower operation. Some of high cost traditional oil and gas fuel units of Taipower had to be shut down or operated in lower load condition. It is of urgency for Taipower to propose optimal competitive stratagies to improve the performance and upgrade the competitiveness. Right now Taipower power market is moving from monopoly toward competitive. By taking Taipowe as study sample, referring to the experience of power libralizationof other countries, and reviewing the characters of Taiwan¡¦s power industry, the study aims to validate following foresight operation stratagies such as¡Gto downsize its organization structure and to increase the productivity of its employee; to promote the Sixth Transportation and Transformation Project to maintain the strength and advantage of transportation and transformation; to develope renewal source generation, to supply the users high-quality and low-price electric power, to prevent the loss of big user and to implement load management polices. The SWOT analysis shows that Taipower must take some competitive stratagies in order to become the leader of power industry and the most reputation enterprise group in Taiwan, These competititive stragies include: 1. Taipower should retrofit and improve the high cost units and low efficency equipment to reduce the generation cost and decrease air pollution ;most of them can generate much power also, Then these units would not be a sunk cost, and can operate all the time. In addition, Taipower should build high efficency units to competite with IPPs. By setting open bidding price and resonable power wheeling price in the future , Taipower can increase its revenue, and secure the resonable rights of its customer, shareholders and emplyee. 2. To establish the development of core techniques and to create innovation mechanism, and to cooperate with domestic & foreign academic organization and manufactures, to lower down repair & maintenance cost. To visit and obtain longterm R&M contracts from IPPs and co-generaters to enlarge R&M market, to establish the excellance image of brand. 3. To diversify its operation by Investing in bangala coal mining in Australia and in fixed network communication business etc.so as to increse revenue and return of investment. In addition, two build coal ships of Taipower were operated by CSC subsidiary in the first 5 years to reduce the cost and keep the supply safety. In the future, Taipower can build more ships to transport the coal by itself.