As one of East Asia’s smallest but most influential economies, power generation in Taiwan is a complex issue. Nuclear power is being phased out just as it is making a post-Fukushima comeback across much of the region. Increased LNG imports are just over the horizon as Taipei plans new import terminals, and renewables are an ever-present issue making headlines – albeit not always for the right reasons.

As home to the world’s leading semiconductor foundry, a reliable and uninterrupted supply is key and a common industry demand. Blackouts at times of peak demand in some parts of the country are not unknown though, and much remains to be done to guarantee uninterrupted energy supply 24-7 across the country.

Ensuring energy security while living in the shadow of an increasingly aggressive and overbearing neighbour across the Taiwan Strait comes at a cost and is often a game of balance and compromise. In late January, the nation’s Ministry of Economic Affairs Energy Administration sat down with Newsbase to discuss the issue.

Speaking on behalf of the ministry, Deputy Director General Lee Chun-Li tackled Taiwan’s self-stated renewable energy output goals of 20% - or 29GW - of electricity generation by the start of December 2025, according to a July 2024 release by his own office and releases by the nation’s Executive Yuan.

By 2030 too, with “electricity demand .. expected to increase by 12-13%” from current levels according to the ministry, when a target number of 30% of capacity from renewables should be in place, green installations are seen as the key to future power production, even with China patrolling the skies and seas around the main island of Taiwan.

Lee deems the “development of diverse green energy as the core of (Taiwan’s) energy transition” and says the country “will continue to deploy mature renewable energy sources, such as solar and offshore wind power while advancing emerging technologies like geothermal and small hydropower.” On offshore wind development he adds that “our goal is to achieve 5.6GW by 2026 and 11.6GW by 2030. By the end of November 2024, we had completed approximately 3GW.”

On solar across the predominantly sub-tropical island, “the goal for PV installation has been set at 20GW in the short term. As of December 2024, Taiwan’s cumulative installed solar PV has reached a total of 14.22GW capacity.”

Addressing the often-overlooked lack of reliability in solar and wind contributions to the national grid, and the importance of LNG in this regard to transitioning countries, the DDG continues “as gas-fired generation has the advantages of being low-carbon and low-pollution compared to coal-fired generation, (it) serves as an important bridging energy source in the development of renewable energy.”

His statement comes on the back of recent news in Taiwan that anti-LNG activist groups are still planning to oppose LNG expansion in the northern port city of Keelung.

Aware of this, Lee states that “our government will continue adding new gas-fired units, receiving stations, and storage facilities, enabling regional gas supply and mutual backup” but does confess that “some coal-fired generation must still be retained to ensure stable power supply.”

He sees this LNG expansion, as temporary as it may be, as part and parcel of efforts “to achieve the 2030 targets of 30% renewable energy” while “reducing coal-fired power from the current 40% to 20%, and maintaining gas-fired generation at 50%.”

Looking further ahead to 2050 the soft-spoken Lee also points to Taiwan’s Pathway to Net-Zero Emissions by 2050 policy explaining that efforts to best achieve net-zero emissions by mid-century, see a combination of the now commonly recognised forms of renewables coupled to the up-and-coming geothermal and small hydropower options under development.

Geothermal in particular in Taiwan is seen as carrying great potential. It is a form of energy highlighted as a "Pioneering Energy" in the government’s 12 Key Strategies for achieving net-zero emissions. This moniker is based on the perceived reliability of geothermal – an advantage of sub-surface ventures in green power production over solar and wind.

As such, Lee says Taiwan plans to produce a full 6GW of geothermal capacity by 2050. To date “five geothermal power plants have been completed, with a combined installed capacity of 7.49 MW” and “Taiwan’s geothermal development plan aims to achieve a cumulative capacity of 20MW by 2025, with steady expansion to reach 200 MW by 2030.”

Such is the interest of the Energy Administration in researching any and all emerging forms of renewables, lesser known forms of green power production also receive government support. This includes wave power; an energy source having found a footing in Eastern Taiwan.

“Su'ao Port in Yilan has been designated by Taiwan International Ports Corp., Ltd. as a wave energy testing site, primarily focusing on nearshore wave energy generation systems,” he says adding that investment support is already in place in the form of a feed-in tariff (FIT) of “TWD$7.32 per kWh” ($0.22).

As forward looking as Taiwan’s power people in government appear to be, however, there are still concerns in place over the monopoly held by the country’s only utility – Taipower. As the nation’s lone English language daily, the Taipei Times, says, Taipower is “facing imminent bankruptcy.”

When asked if smaller operators should be allowed to compete with Taipower, Lee says that “Taipower is responsible for large gas-fired development plans and the implementation of grid distribution system resilience plan, while private operators serve as the primary drivers of renewable energy development in Taiwan, complementing each other.” To this end, he implies that Taipower will not be allowed to fail by the ruling government.

Indeed, if need be “the government will actively assist in strengthening communication with local stakeholders” albeit stopping short of declaring the possibility of creating an open and completely level playing field for utility level infrastructure by private entities.

Much of this lack of opening up power supply in Taiwan can likely be attributed to Chinese efforts to intervene at all levels of public and private life in Taiwan, as Beijing-backed ‘private’ companies pose a clear and ever present danger to the self-governed island nation.

It is a sentiment that also appears to play out when Lee addresses Taiwan’s elephant in the room on issues pertaining to energy supply; nuclear power.

The move away from the use of nuclear power has made more than a few headlines in recent years with an administration that has repeatedly stated its intent to abandon the use of nuclear power altogether; a policy that has seen Taiwan fallen out of step with other Asian nations of late.

On this, Lee reports that while “the use and decommission of nuclear power plants are clearly regulated by law, and the Ministry of Economic Affairs will act accordingly” geological concerns and waste disposal remain an ongoing issue across the island.

“Given Taiwan’s limited land area, dense population, and earthquake vulnerability, coupled with the long-standing controversy over nuclear power usage, finding a viable final disposal site for nuclear waste remains elusive,” he says.

To this end, he adds that “before proceeding with the use of nuclear power, it is imperative to address issues such as ensuring nuclear safety, nuclear waste emplacement, and achieving national consensus” although he does offer a glimmer of hope to those supporting the use of nuclear power generation in the future by saying that “regarding new nuclear energy technologies, including SMRs, we will maintain an open attitude and continue to monitor developments while clarifying issues such as technology, safety, and regulations.”