The Taiwan Government have plans to phase out nuclear power generation by 2025. Nuclear power installed capacity decreased from 4.9GW to 3.8GW, at a negative CAGR 1.2%. The capacity will reach zero by 2025 as per government plans. Taiwan was prompted to rethink its nuclear power program in 2011, in the wake of the Fukushima disaster in Japan. This led to the government placing one of its upcoming nuclear reactors on standby and postponing the construction of the other indefinitely. Existing reactors are set to be decommissioned after their useful life is over. Taiwan intends to fill the gap created by the retirement of its nuclear power plants with renewable power capacity. To support the development of renewable energy, the government passed the Renewable Energy Development Act in 2009 (further amended in 2019) which set a target of 27GW of installed capacity coming from renewables by 2025.
Solar PV and offshore wind await to be developed as the most installed renewable technologies by 2030. Renewable capacity is estimated to increase to 40.6GW in 2030 from 7.4GW in 2020, at a CAGR of 18.6%.
As observed in the figure above, Taiwan is heavily dependent on thermal power which is in turn dependent on imported coal and gas. The share of generation from thermal power increased from 75% in 2000 to 83% in 2020. Taiwan has been one of the highest coal and gas importers in the world. Such high level of import reliance is a challenge for the country’s energy security. The solution, to achieve energy security in the country, is to engage more in storage systems. The power generation from coal power plants is speculated to decline in the coming years owing to the government’s plan of gradual phase-out of coal power plants.
In the wake of the current pandemic situation around the world, Taiwan had aptly followed various measures that helped them to restrain the spread of the pandemic. Taiwan’s economy did show symptoms of economic slowdown, but compared to other countries, Taiwan successfully escaped the worse. The country was able to sustain its exports which is one of the major contributors to its GDP growth. However, in the power sector, the country observed a slowdown in electricity consumption due to the reduced global economic activity.