Weathering the global energy storm | Taiwan Climate & Energy Weekly Briefing 03/29
Plus: Air pollution from Taiwan’s electronics manufacturing could lead to 90 premature deaths by 2030
One month on from the outbreak of the US-Israel war on Iran, what’s the current situation for Taiwan’s energy supply?
Energy supplies are still stable…
Taiwan’s LNG supplies for May have already been mostly secured, alongside around half of June’s supply, according to the Minister of Economic Affairs. Since the outbreak of the Gulf energy crisis, Taiwan’s LNG stockpiles (stored in 14 tanks across the country) have remained above the 11 day legal requirement.
… but disinformation would have you believe otherwise.
A wave of online disinformation from China-based accounts is pushing a narrative that Taiwan will soon run out of natural gas due to disruptions caused by the Gulf crisis, seemingly with the intent to create panic and undermine trust in the government.
In response, the Energy Administration put out another statement confirming that “there is absolutely no natural gas shortage crisis as reported by foreign media.”
CNA provides an interesting historical perspective on how Taiwan successfully weathered previous energy crises - especially the oil crises in the 1970s.
Consumer prices are still unaffected…
Taiwan Power Company (TPC) will freeze electricity rates for 6 months starting in April. The average electricity rate will remain NT$3.78 per kWh (USD 0.12 / GBP 0.09). The electricity price review committee will next meet in September.
Household gas, LPG, and fertiliser prices will also remain frozen for the next month. Gasoline and diesel prices are set to increase slightly on Monday. Based on international oil prices, gasoline should have risen by NTD15 per litre, but CPC has only increased them by NTD1.8 per litre, with the government absorbing the difference.
… but how sustainable is the price freeze?
Commentators have raised concerns about how Taiwan’s state-owned energy companies’ debt can be managed while they absorb the majority of cost increases as consumer prices remain frozen.
Climate groups also warn that freezing prices risks sending the wrong policy signal by effectively subsidising fossil fuels. Renewable energy development could be a victim of the price freeze, with the cost of natural gas now exceeding Taiwan’s feed-in tariffs for large-scale solar power.
The global petrochemical crisis has also led to public concerns about Taiwan’s supply of plastic bags and other consumer goods, leading to the Ministry of Economic Affairs urging the public to purchase and use plastic bags rationally.
Nuclear restart rumblings
Reverberations continue following President Lai’s announcement last week that the approval process has begun for restarting two decommissioned nuclear plants (Guosheng No.2 and Ma-anshan No.3):
The DPP (Lai’s party) has clarified that the party has no definite plans to restart nuclear: the restart approval process represents a contingency response to increasing power demand. Lai has also emphasised that the government will continue to develop green energy alongside nuclear power.
The KMT has called for Lai and the DPP to apologise for its “flawed energy policy” of promoting a nuclear free homeland.
Strong opposition, including protests, from civil society groups on the grounds that unresolved nuclear waste issues, safety risks, and insufficient legal frameworks make restarting nuclear power premature and dangerous.
Critics argue that the government is choosing - rather than being required - to proceed with restart plans, and is downplaying nuclear safety concerns.
Other environmental groups worry nuclear restart will hinder green energy development.
Industrial groups are optimistic about the potential of restarting nuclear energy to ensure a stable power supply.
One commentator interprets the nuclear restart as “great victory for the KMT” in its apparent, but unspoken “real energy policy… to increase the nation’s dependence on external fossil fuel supplies.”
Another praised Lai as “willing to do what must be done and bear responsibility for the nation’s survival” at a critical juncture where “a substantial energy shortage looms.”
Plans to restart the No.3 Ma-anshan Nuclear power plant have now been formally submitted to the Nuclear Safety Committee. The next step on the journey to obtaining a renewed operating license is to carry out internal inspections, a process expected to require 1.5 to two years.
An in-depth overview of the required steps for the restart process is can be found here.
In other news…
Energy
Overall use of high-voltage power increased in the first two months of 2026 with the semiconductor industry’s electricity consumption growing almost 9% in the same period, indicating Taiwan’s economic activity is continuing to gain momentum.
Virtual power plants (VPPs), which could transform distributed resources like electric vehicles and data centers into active contributors to grid stability, are emerging as a potential solution to Taiwan’s rising electricity demand.
Geothermal
New measures to expand geothermal energy were introduced at the Taiwan International Geothermal Forum: clearer regulations, a streamlined review system, financial incentives (the government will subsidize up to 50% of exploration costs), and a greater role for state-owned companies in project development. Beinan and Luye townships in Taitung have been selected as priority sites for new projects, which are expected to generate around 7MW of electricity.
Solar
An in-depth investigation by The Reporter explores the challenges facing Taiwan’s aquavoltaics (combined solar power and aquaculture) policy push.
Mandatory installation of rooftop solar on large buildings will take effect from August, with the policy change expected to add around 660 MW of installed capacity annually.
Wind
Applications for offshore wind auctions round 3.3 will open on April 1 and conclude by September 30, with the selection process expected to be completed by the end of the year. Round 3.3 will allocate 3.6GW of capacity that should be completed and connected to the grid by 2031.
Taiwan plans to launch a floating wind demonstration project later this year. A new academic paper reviews the reasons behind the “stagnation” of Taiwan’s floating wind industry, including insufficient port infrastructure, unclear regulatory frameworks, fragmented supply chains, and a lack of financial incentives.
The Formosa 2 consortium has finalised a TWD 58.9 billion refinancing - the first offshore wind refinancing in the Asia Pacific region.
LNG
Environmental groups have accused TPC of using an “emergency measures” plan to bypass legal remediation procedures at Keelung’s Hsieh-ho power plant in order to advance construction of the fourth LNG terminal project. The plant is the only remaining oil-fired power plant in Taiwan, and has been designated as a soil pollution site after a heavy oil leak.
Climate
Semiconductors
New analysis finds Taiwan’s electronics manufacturing – driven by AI semiconductor demand – is linked to an estimated 90 premature deaths, 19,000 work absences, 277 child asthma cases, and nearly USD 500 million in economic losses by 2030 due to health complications from air pollution. Accelerating renewables procurement target for AI chip manufacturers would see a significant improvement in air quality and save around 41 lives per year.
“Taiwan’s power demand rises with the expansion of the AI industry, replacing fossil fuels with renewable energy sources delivers substantial public health benefits by reducing air pollution exposure. Evidence clearly shows that advancing beyond current commitments to a complete renewable transition is not only a climate imperative but also a public health and economic necessity.” - Daniel Nesan, Analyst at CREA and co-author of the report
A 75-year low in rainfall in western Taiwan has led to concerns over water supply for semiconductor manufacturing. The Water Resources Agency has imposed water rationing and other emergency measures in the region.
Adaptation
Environment Minister Peng Chi-ming hopes to establish a National Climate Adaptation and Resilience Center to integrate cross-departmental work on adaptation in 2027. The center could potentially be funded by the revenue from the carbon fee scheme.
Mitigation
Taiwan’s carbon fee scheme - which will begin collections in May - is expected to generate NTD 4.5 billion in its first year. Environmental groups held a forum to discuss how the revenue should be used, with suggestions including accelerating industrial transition of hard-to-abate sectors, subsidising green lifestyles.
7-11 stores participated in Saturday’s Earth Hour campaign, turning off their sign lights from 8:30pm to 10:30pm, saving about 3,000kg of carbon emissions
Taiwanese electric scooter company Gogoro plans to launch a model specially designed for the Vietnamese market.
Young environmental leaders were awarded at a government ceremony