As early as 1966, the Tatun volcanic region in northern Taiwan was selected as the first target for geothermal exploration because of its accessibility and abundance of high-temperature hot springs and fumaroles.
清水地區因地位偏僻，交通不便，居民稀少，利用該區地下熱水蒸氣代替鍋爐蒸氣發電最為適宜。加上該區地熱水無腐蝕性，適合地熱發電，故國科會地熱小組選擇這個地區建造地熱發電廠。