Taiwan Power Co. (Taipower) has signed an agreement to purchase two natural gas turbines worth NT$37.5 billion (about US$1.2 billion) with American company General Electric Co. (GE).

Taipower Chairman Yang Wei-fuu and GE Gas Power Chairman John Rice signed the agreement during a ceremony in Washington on Tuesday witnessed by U.S. Senator Lindsey Graham and other political figures.

Under the agreement, Taipower will purchase two of GE's highly efficient H-class turbines worth NT$37.5 billion for the No. 8 and No. 9 generator units of the gas-fired Tatan Power Plant in Taoyuan.

Yang told CNA that the two gas turbines with capacities of 1,100 megawatts are expected to be put into service in 2021 and 2023, respectively.

Pushing an energy transition is one of the top priorities of Taiwan's government and involves adding natural gas-fired capacity and building solar power and offshore wind power facilities, Yang said.