The Research on Reform Strategy of Electricity Tariffs and Demand Response Responding to Renewable Energy As renewable energy continues to be incorporated into the power system, the net load of Taiwan (after deducting the load from solar power and wind power) will gradually form a Duck curve, leading to the difficulty in dispatching the must run units and the sudden increase in the evening load, or resulting in solar curtailment. In responding to the Duck curve, foreign electric utilities have gradually adjusted the peak and off-peak periods of time-of-use (or time-varying) rate to guide users for the use of electricity; for example, California adjusted the peak period from 12: 00 ~ 18: 00 to 16: 00 ~ 21: 00 in 2019. By devising in advance the electricity rate plan and the electricity demand response plan, the curtailment of wind power and solar power, or the substantial increase in the demand for supporting services can be reduced. The related practices can serve as references for Taiwan. In addition, the Electricity Act was amended and promulgated on January 26, 2017, which allowed power generation industry and power selling industry of renewable energies to enter the retail market, enabling renewable energy operators to directly sell electricity to end consumers. In the future, it is expected that the cost of power generation equipment for renewable energy will decrease year by year, which will compete with Taipower ’s multistep electricity rate and time-of-use (or time-varying) rate, impacting the revenue and the rate structure of electricity. Therefore, it is indeed necessary to adjust Taiwan's multistep electricity rate and time-of-use (or time-varying) electricity rate in accordance with the future development trend of renewable energy. The management of current demand can be divided into price-based and incentive-based measures. In respond to the schedule of Taiwan's renewable energy penetration, short-, medium- and long-term reform strategies should be planned as early as possible, including when to start, II-3-1 how to adjust, and how to transit the implemented schedule, allowing Taiwan's electricity pricing system and demand response strategy to meet the needs of power system transformation and open market in the future. The world is now at an important stage of the energy transition. The electric utilities in major developed countries around the world are facing the challenge of death spiral. By combining the current information communication technology (ICT), artificial intelligence (AI), analysis of big data (data analytics) and the Internet of Things (IoT), the smart grid can effectively connect to distributed generation, renewables, energy storage, and disruptive technologies such as electrical vehicle charging and discharging technology and business models and advanced metering infrastructure (AMI) for power demand, as well as other "non-wire alternatives" (NWA) such as energy efficiency, demand response, and time-varying rate (TVR), promoting a more flexible and efficient power supply and demand. In addition, the business model of traditional electric utility can also be improved, which suggests that electric utilities no longer have to focus solely on power generation, transmission & distribution, and electricity sales as their core businesses. Instead, they can strengthen customer participation and customer services, treating them as important niche for business operation. For this reason, this study will assist Taipower to review the reform strategy of electricity rate and demand response based on foreign electric utilities in respond to the increasing share of renewable energy and the established power market. The results can then be adopted to formulate Taipower ’s short-, medium-, and long-term reform strategies for electricity rate and demand response of renewable energy penetration and the above-mentioned disruptive technologies under reasonable scenarios, including multistep electricity rate, time-of-use (time-varying) rate, and demand response measures. In addition, the impact of electricity rate and demand response review practices on stakeholders and the expected II-3-2 benefits will be assessed to assist in the development of related policies and the convening of public briefings for stakeholders. II-3-3