Taiwan’s Energy Trend: A More Sustainable Future
Navigating Taiwan’s Energy Challenges: Summer Shortages, Nuclear Phase-Out, and the Push for Renewables
Taiwan faces energy shortages during peak seasons, especially in the summer when electricity demand rises sharply.
With nuclear power being phased out by 2025, there's concern that renewable and natural gas infrastructure won’t grow quickly enough to fill the gap.
Blackouts in 2017 and 2021 exposed the difficulties of keeping the grid reliable during this energy transition.
Taiwan’s heavy reliance on imported fossil fuels (over 95%) leaves it vulnerable to global price hikes and supply chain disruptions.
The government is prioritizing efforts to address energy shortages by expanding natural gas infrastructure and ramping up renewable energy projects.
Energy generation and consumption steadily increased from 2004 to 2019, with a noticeable dip around 2008-2009, likely due to the global financial crisis. In 2010, both generation and consumption saw a sharp rise, driven by industrial growth. After 2020, the numbers leveled off, possibly due to the effects of the COVID-19 pandemic.
Throughout the year Taiwan has managed to maintain an energy surplus on an annual basis even on an uptrend of energy being consumed. This indicates the presence of effort from the Taiwanese government and companies to keep up with demand.
Why Do Blackouts Occur?
Although there is a surplus of energy at the national level, regional distribution can be uneven. Despite a constant energy surplus on an annual basis, demand spikes during summer and winter often exceed the capacity of certain power plants or regions. These spikes are what causes the blackouts that happen from time to time.
With the Taiwanese government trying to stop the usage of nuclear energy by 2025, Taiwan may experience temporary energy shortages, particularly if renewable energy projects and natural gas infrastructure face delays. This makes Taiwan more exposed to future blackouts in certain regions.
The share of coal-fired electricity in Taiwan has gradually decreased, reflecting the country's effort to transition toward cleaner energy and reduce its reliance on coal. Meanwhile, LNG-fired electricity has steadily increased, becoming a key component of Taiwan's energy mix in line with the government’s plan to boost natural gas use to 50% by 2025.
At the same time, the portion of nuclear power has been shrinking, as Taiwan aims to phase out nuclear energy entirely by 2025. Although renewable energy sources like solar, wind, and biomass have grown, their share remains relatively small, though it is gradually increasing as Taiwan advances its renewable energy initiatives.
The industrial sector consumes the most electricity in Taiwan, driven by high energy demand from manufacturing and tech industries. Residential consumption ranks second, with usage remaining steady over the years. The services sector also holds a significant and stable share of electricity use, reflecting consistent demand from businesses and commercial activities.
In contrast, agriculture and transport contribute only a small amount of electricity use, making up a minor share of overall consumption. The government is expected to continue promoting energy-saving initiatives to manage consumption, especially in the industrial sector, which remains the largest energy consumer.
Energy Trends Forecast
Taiwan is targeting 20% of its electricity to be generated from renewable sources by 2025, with major investments in offshore wind and solar energy.
As the country phases out nuclear power by 2025, natural gas is expected to take on a larger role, potentially making up 50% of the energy mix.
However, despite efforts to increase the share of renewables and natural gas, Taiwan may still face energy security risks, particularly during peak demand seasons or if global supply chains are disrupted.
Source
https://www.moeaea.gov.tw/ECW/english/home/English.aspx - Taiwan’s Energy Administration - Ministry of Economic Affairs