Taiwan’s energy conundrum is a complex web of national security concerns, climate pressures, and political challenges. The island’s reliance on imported fossil fuels, which account for around 90% of its energy needs, makes it vulnerable to price fluctuations and potential blockades by China. Furthermore, the government’s commitment to phasing out nuclear power by 2025 has created a pressing need for alternative energy sources.
Despite its absence from the United Nations, Taiwan participates in UN climate meetings and has adopted the Paris Agreement’s targets of peaking emissions before 2030 and achieving net zero by 2050. Major Taiwanese companies, including TSMC, have pledged to achieve net-zero production through the RE100 initiative. However, the gap between aspiration and reality remains significant.
Angelica Oung, a journalist and founder of the Clean Energy Transition Alliance, notes that Taiwan’s energy system is running perilously close to the edge. Two major blackouts in 2021 and 2022 affected millions of households, highlighting the strain on the grid. Nicholas Chen, an energy expert, points out that the government is struggling to keep up with existing demand, with four major power outages in the past eight years and frequent brownouts.
The operating margin on the grid, which should be 25% in a secure system, has occasionally dropped to as low as 5% this year. This fragility is concerning, especially considering Taiwan’s current energy mix: fossil fuels account for 83% of power generation, with coal, natural gas, and oil making up the bulk of it. Renewable energy sources, including solar, wind, hydro, and biomass, contribute a mere 10%.
Taiwan’s reliance on imported fossil fuels makes it vulnerable to price fluctuations and potential blockades by China. In the event of a naval blockade, Taiwan’s coal reserves would last around six weeks, while liquefied natural gas (LNG) supplies would be depleted in just over a week. Given that LNG accounts for over a third of electricity generation, the impact would be severe.
The government has set ambitious energy targets, including a 2050 net-zero roadmap, which aims to reduce coal to 30%, increase gas to 50%, and boost renewables to 20% by 2025. However, none of these targets are currently on track.
