GlobalData’s latest report, ‘Taiwan Power Market Outlook to 2035, Update 2022 – Market Trends, Regulations, and Competitive Landscape’ discusses the power market structure of Taiwan and provides historical and forecast numbers for capacity, generation and consumption up to 2035. Detailed analysis of the country’s power market regulatory structure, competitive landscape and a list of major power plants are provided. The report also gives a snapshot of the power sector in the country on broad parameters of macroeconomics, supply security, generation infrastructure, transmission and distribution infrastructure, electricity import and export scenario, degree of competition, regulatory scenario, and future potential. An analysis of the deals in the country’s power sector is also included in the report.
With Taiwan phasing out the nuclear power by 2025, renewable sources are likely to gain traction, with the government planning to fill the power generation gap (caused due to the phasing out of nuclear power) by rapidly increasing the development of renewable energy sources, says GlobalData, a leading data and analytics company. Total renewable installed capacity amounted to 9.31GW in 2021, having increased from 1.38GW in 2010 at a compound annual growth rate (CAGR) of 19.0%. The government has been actively encouraging the use of renewable sources for energy generation to reduce the dependence on fossil fuels. However, renewable capacity is expected to increase from 9.3GW in 2021 to 63.7GW in 2035 at a CAGR of 14.7%.
In addition to low fossil fuel reserves, uranium deposits are also absent in Taiwan, making it dependent on imports for running a major portion of its power generation portfolio. The country was prompted to rethink its nuclear power programme 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 are expected to constitute most of the installed renewable capacity by 2035.
Taiwan efficiently implemented various measures that helped them to curb the spread of the pandemic from the early stages of the spread. It implemented plans concerning border quarantine measures, including on board quarantine, fever screening, health declarations, and a 14-day home quarantine for passengers arriving from nations it has listed under the Level 3 Warning. Significant efforts from the government ensured that the country’s Covid-19 infection count remained under 1,500 and Covid-19 related deaths to only 12 (since the pandemic began) as of April 2021.
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 of its GDP growth. The exports of the country were driven by increased demand for electronic equipment, which is boosted because of an increase in investment in 5G infrastructure and demand for home-working equipment.