The government of Taiwan plans to phase out nuclear power generation by 2025. Installed nuclear capacity increased from 4.9 GW to 3.8 GW, at a negative CAGR of 1.2%. The capacity will reach zero by 2025 according to government plans. Taiwan had to rethink its nuclear program in 2011, following the Fukushima disaster in Japan. This has led the government to put one of its future nuclear reactors on standby and indefinitely postpone the construction of the other. Existing reactors are expected to be decommissioned at the end of their useful life. Taiwan intends to fill the void created by the decommissioning of its nuclear power plants with renewable energy capacity. To support the development of renewable energies, the government adopted the Renewable Energy Development Law in 2009 (amended again in 2019) which sets a target of 27 GW of installed capacity from renewable energies by 2025.
Solar PV and offshore wind are expected to be developed as the most installed renewable technologies by 2030. Renewable capacity is expected to increase to 40.6 GW in 2030 from 7.4 GW in 2020, at a CAGR of 18.6%.
As shown in the figure above, Taiwan is highly dependent on thermal energy, which in turn depends on imported coal and gas. The share of thermal electricity production increased from 75% in 2000 to 83% in 2020. Taiwan is one of the largest importers of coal and gas in the world. Such a level of dependence on imports is a challenge for the country’s energy security. The solution to ensuring the country’s energy security is to engage more in storage systems. Electricity generation from coal-fired power plants is expected to decline in the coming years due to the government’s plan to phase out coal-fired power plants.
As a result of the current pandemic situation around the world, Taiwan has aptly followed various measures that have helped them curb the spread of the pandemic. Taiwan’s economy has shown symptoms of an economic slowdown, but compared to other countries, Taiwan has managed to escape the worst. The country has been able to support its exports which are one of the main contributors to the growth of its GDP. However, in the electricity sector, the country has observed a slowdown in electricity consumption due to the reduction in global economic activity.