Taiwanese voters will have a chance to decide the future of nuclear power in November, after the Central Election Commission confirmed that a referendum on abolishing the country’s “nuclear-free homeland” policy can be held alongside local elections.

The referendum comes as Taiwan faces rapidly rising electricity demand from its AI and semiconductor industries, prompting the government to consider raising its forecast for average annual electricity demand growth through 2035. In June, the government projected annual growth of 2.5%.

The link between AI and nuclear power is made explicit in the referendum question, which asks voters:

Do you agree that the government should abolish its ‘nuclear-free homeland’ energy policy to ensure public health, stabilize power supply, lower electricity prices, enhance national defense resilience and support the development of the artificial intelligence industry?

But how well does the public understand the energy system that is supposed to support this growth?

A recent survey found that 82% of respondents supported developing AI and semiconductor industries in their local areas, but also that one-quarter mistakenly believed nuclear power was Taiwan’s largest source of electricity. In reality, nuclear power has contributed 0% of Taiwan’s electricity generation since the last nuclear reactor was shut down in May 2025.

In response, civil society groups are calling on the government to better inform the public about Taiwan’s energy situation ahead of the referendum. Environmental groups also have criticised the referendum question for containing factual inaccuracies and failing to provide voters with sufficient information on the implications of returning to nuclear power.

The Ministry of Economic Affairs, meanwhile, says it will strengthen public communication on energy policy to address widespread misunderstandings about the country’s electricity mix.

The pro-nuclear opposition KMT party plans to hold 100 outreach events before the referendum to encourage voters to support a nuclear restart.

These uncertainties about public understanding of Taiwan’s energy system come alongside concerns over another information gap: the lack of transparent, consistent data on how much electricity AI data centers currently use, and how much they are expected to consume in the future.

Conflicting estimates make it difficult to assess how rapidly AI-driven demand will grow, where new power infrastructure will be needed, and what that means for the resilience of Taiwan’s electricity system.

In other news…

Energy

AI

• AI and other power-intensive industries should be located in areas where electricity and grid capacity are already available, reversing Taiwan’s traditional approach to industrial planning, said a power sector executive:

“In the past, electricity followed industry, but in the future, industry should follow electricity,” -Fabulous Power Co general manager Sam Hung

• Taiwanese citizens will each receive a NTD 10,000 (~USD 315) cash handout as the government seeks to share the economic dividends of the AI boom. However, some argue the money should instead be used to fund renewable energy and environmental conservation projects, given the significant amount of energy and water used by the AI industry.

• The new “Green AI Taiwan” carbon reduction platform has been launched, to help SMEs use AI models to calculate the most efficient carbon reduction pathways.

“AI computing is very power-intensive, but it can also help companies save electricity and realise the potential of carbon reduction.” - Lien Hsien-ming, president of the Chung-Hua Institution for Economic Research (CIER).

Semiconductors

• TSMC aims to increase renewable energy to 35% of its global electricity use this year and 60% by 2030, while expanding solar generation and renewable energy procurement alongside continued investment in advanced semiconductor technologies.

• A new think-tank report argues that Europe’s semiconductor policy should consider Taiwan’s electricity situation, and treat energy cooperation with Taiwan as chip-supply insurance.

Industry

• Taiwan’s revised Energy Management Act will require new or expanded large electricity users to install either self-generation or energy storage, but exempts more than 400 existing major users, drawing criticism that the changes weaken corporate responsibility for energy self-sufficiency and were passed without adequate public consultation.

• The Ministry of Economic Affairs outlined the four main changes to the Act:

1. Public disclosure of energy sales data — Energy suppliers will publish anonymised energy sales statistics to improve public understanding of energy use and support energy-efficiency policies.

2. Self-generation or storage for new/expanded large users — New or expanded large electricity users will be required to install either self-generation or energy storage, strengthening their energy resilience and reducing reliance on the public grid

3. Stronger local energy-efficiency enforcement — Local governments will be allowed to commission qualified professionals to conduct energy-efficiency inspections

4. Stronger penalties for violations — Maximum fines will be increased, while authorities will be able to publicly name companies that violate regulations

• Traditional industries also require a stable power supply, said Taiwan’s top trade group, calling for a more reliable and diverse power mix that should include nuclear power.

• Taiwan’s solar power expansion is inefficient given its limited land, and nuclear power offers a more reliable and cost-effective source of baseload electricity to support the country’s growing industrial and AI-driven power demand, argued Presidential climate adviser and Pegatron chairman Tung Tzu-hsien.

Energy Security

• Taiwan’s energy system could sustain electricity supplies for more than 200 days during a blockade, according to Taiwanese experts, who argue that combining coal and gas reserves with renewables alongside a 30–40% reduction in electricity demand could significantly exceed the 14-day resilience estimate often cited by international media and think tanks.

• Taiwan is investing NTD 800 million in disaster-resilient microgrids and mobile power supplies, with 20 sites in Chiayi, Tainan and Pingtung selected as priority locations for systems combining solar, battery storage and diesel generators to maintain power during disasters.

• Taiwan and Australia have agreed to deepen cooperation on LNG investment and cooperation mechanisms, and signed a strategic partnership plan on critical minerals.

Labour rights

• Indonesian technicians working on renewable energy projects in Taiwan accused their employer, Singapore-based Sheffield Green Co, of forced labour and wage theft. The Ministry of Labor has vowed to launch an investigation, and the case is yet another example of how regulatory gaps in Taiwan’s migrant labour laws leave foreign workers vulnerable to exploitation.

Renewable development

• Taiwan’s government has made about 724 hectares of state-owned land available for renewable energy projects, with the sites expected to support around 933 MW of future solar, wind and geothermal capacity.

Wind

• Taiwan Power Company (TPC) has rejected claims that it withheld payments for an offshore wind project, saying payments have followed contractual milestones while it stepped in to help resolve installation delays after contractor Foxwell Power failed to pay subcontractors, and urging the company to resolve its separate loan dispute with banks.

• Taiwan and Norway have signed two MOUs to deepen bilateral cooperation in renewable energy and offshore wind power.

Storage

• A 80 MW battery storage facility in Tainan has been connected to the grid. The project developed by Delta Electronics and Kuantian Steel has 305,000 kWh of storage capacity and will participate in Taipower’s electricity trading platform.

Climate

Climate disasters

• Taiwan’s national search-and-rescue team is preparing to travel to Nepal, to assist in rescue operations following the devastating Nepal-Tibet flood. Taiwan’s government is working to check on the safety of 51 Taiwanese nationals registered as being in Tibet.

• The southern city of Kaohsiung recorded its highest-ever daily rainfall, with torrential rain causing flooding and power outages. 567 millimeters of rain was recorded over 24 hours, breaking previous records.

• Heavy rains in southern Taiwan have caused more than NTD 148 million in agricultural losses. The government has launched a second round of drainage projects under its NTD 1 trillion, four-year climate adaptation program to strengthen flood resilience.

• Vice President Hsiao Bi-khim has called for greater urban and infrastructure resilience as extreme weather becomes more frequent, arguing that cities must be able to withstand disasters and recover quickly rather than being brought to a standstill.

• Disaster resilience should begin at the household level, and families should maintain at least one week’s worth of essential supplies, a backup power source, backup communications and backups of important documents, argues a Taipei Times op-ed.

Carbon capture and storage

• Taiwan’s Ministry of Environment has introduced new rules governing carbon capture and storage (CCUS), requiring environmental impact assessments, ongoing monitoring and public disclosure, long-term financial guarantees and safety measures to manage environmental risks as CCS becomes part of Taiwan’s net-zero strategy.

• CCUS is becoming increasingly important in Taiwan as gas-fired power generation expands. The government is targeting gas with CCUS at 20–27% of the power mix by 2050 and has started to assess potential storage sites and test capture technologies.

Low-carbon transport

• EVA Air will work with partners, including Microsoft, to accelerate the adoption of sustainable aviation fuels (SAF). EVA Air wants to reach net zero by 2050, while Microsoft wants to reduce the carbon footprint of its cloud equipment transportation. Taiwan is currently capable of producing 6,500 tonnes of sustainable aviation fuel per year.

• Evergreen Marine has ordered 55 dual-fuel vessels including methanol- and LNG-powered ships equipped with energy-saving technologies to reduce fuel consumption and greenhouse-gas emissions.

• The lack of a viable market is the biggest barrier to developing low-carbon fuels in Taiwan, with experts calling for mandates and time-limited incentives to create demand and encourage investment in domestic production.

Petrochemicals

• Experts and environmental groups are urging Taiwan to reconsider CPC’s proposed “New Fourth Naphtha Cracker” expansion calling for an environmental impact assessment to determine appropriate capacity, taking into account climate and environmental costs.

Carbon sinks

• Taiwanese researchers are tracking the movements of “blue” carbon - carbon produced by coastal ecosystems - finding that ocean currents carry blue carbon for thousands of kilometres before reaching deep-ocean carbon sinks.

• Growing grasses around tree orchards could significantly boost soil carbon sequestration rates and increase the resilience of fruit trees.

Climate diplomacy

• President Lai, speaking at a sustainability forum, said Taiwan will promote sustainable development in the Asia-Pacific by leveraging its strengths in science, technology, and manufacturing. CPC and TPC won sustainability awards at the forum.

• Taiwan’s willingness to further collaborate on climate action and disaster prevention with the Philippines, Japan and other regional partners was reaffirmed by a Taiwanese diplomat attended a climate change forum in Manila.

Circular economy

• Taiwan will publish its 10-year circular economy roadmap in 2027, to support waste management and resource security.

• The Ministry of Environment is launching a nationwide campaign to encourage households to replace old lighting with LED bulbs, aiming to boost the lighting recycling rate to 95% while cutting electricity use, carbon emissions and waste.

Climate adaptation

• Questions have been raised over the cost of eight large sunshades installed in Taipei’s Xinyi District after the city government spent nearly US$1.9 million on the project, which has failed to meet contractual and inspection standards.

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Industry

• Amendments to the Energy Administration Act, as discussed in last week’s newsletter, have been passed by the Legislative Yuan and are now headed to the Presidential desk for final sign-off.

  Under the new amendments, large electricity users who do not install self-use renewables or storage facilities could be fined up to NTD 750,000. However, this restriction will only apply to new or expanding energy users, with existing large users exempted.

AI

• A new interactive map visualises where planned and operational data centers are located in relation to Taiwan’s grid infrastructure and renewable energy installations.

• Taiwan’s shortage of low-carbon electricity could deter investment in AI data centers, said the chairman of renewable energy company INA Energy Corp.

“Taiwan is technologically strong, but it lacks sources of electricity, and that is why AI data centers are reluctant to establish operations here,” - Norman Tsai, Chairman of INA Energy

• Nuclear and renewable energy should be pursued together to ensure Taiwan has a stable electricity supply to support the development of AI, said the chairman of major trade group the Third Wednesday Club

“Without a stable supply of electricity, there can be no industrial development,” - Lin Por-fong, Chairman of the Third Wednesday Club and Taiwan Glass Industry Corp

• President Lai said Taiwan will combine its industrial strength and research capabilities to develop globally competitive net-zero technologies while attending a net-zero tech contest.

Natural gas

• As international gas prices continue to rise following disruptions to shipping in the Strait of Hormuz, Taiwan Power Company’s fuel costs for electricity generation could increase by more than NTD 120 billion (USD 3.77 billion) this year.

• The government is expected to propose a budget for subsidies to help ease TPC’s financial burden, with calculations for the amount of subsidies to be provided still ongoing.

• Taiwan’s Supreme Administrative Court has revoked the 2018 coastal-use permit for the proposed Third LNG Terminal in Taoyuan, ruling that the Interior Ministry had failed to properly assess ecological impacts and mitigation and restoration measures under the Coastal Zone Management Act. State-owned oil and gas company CPC says the ruling does not affect the terminal’s core construction area or ongoing breakwater expansion.

Offshore wind

• A wind turbine off the coast of Changhua county caught fire in early August. The project developer Orsted said the turbine was successfully shut down and isolated, with no casualties reported. Orsted will carry out investigations and inspections to ensure the fire does not affect the surrounding marine environment.

• Orsted has proposed a new 2GW project - Dadu 2 - off the coast of Changhua.

• A potential gap in Taiwan’s offshore wind development from 2031-2033 could disrupt investment and undermine the marine engineering sector, warned a wind engineering executive, urging the government to launch the next round of projects quickly.

Nuclear

• Taiwan’s proposed upcoming referendum on nuclear power was criticised as a tool for political mobilisation by anti-nuclear activists and legal scholars, calling on the Central Election Commission to reject the proposal.

  They argue the text of the referendum question, which links nuclear power and economic revitalisation, is misleading, as there is no evidence that nuclear power will support the economy.

“This kind of referendum, which functions like a public opinion poll, will have no real effect other than wasting public funds and increasing the workload of election officials,” - a lawyer speaking at the National Anti-Nuclear Action Platform conference

Solar

• Taiwan has the potential to develop up to 20 GW of solar capacity, up from 16 GW currently, said the director-general of the Energy Administration.

Hydro

• President Lai said small hydropower projects represent the “Taiwanese spirit” of cherishing resources, making good use of nature, and adapting to local conditions, addressing a small hydropower design competition award ceremony.

Energy poverty

• Indigenous communities are unequally affected by energy poverty, according to the results of a new research study. Energy poverty is defined as using more than 10% of all income on electricity.

  Many families living in energy poverty were unable to afford upgrading their old, inefficient air conditioning systems, trapping them in a spiral of “having to pay more for less.” 65% of these families were opposed to raising electricity costs to facilitate the energy transition.

Business

• President Lai launched a NTD 100 billion fund to assist SMEs in their net-zero transitions over the next 8 years

• Credible transition plans with clear timelines are increasingly important for Taiwanese companies seeking decarbonisation financing, said a Deloitte Taiwan executive.

Grid infrastructure

• Old underground power cables in 18 priority areas will be upgraded by Taiwan Power Company, as it works to strengthen urban power resilience. The complex renovation project has a budget of NTD 5 billion.

Climate

• Heat adaptation technologies are the focus of a new Ministry of Environment exhibition, which features a balloon canopy and a nano-mineral diffused light net.

• Bicycle manufacturer Giant reduced its carbon emissions by 40% in 2025, with renewable energy accounting for almost 20% of the company’s electricity use.

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The AI boom is driving rapid economic growth in Taiwan - recent forecasts suggest the economy will grow at the fastest pace seen in four decades this year.

But that economic growth comes with a growing appetite for electricity. Power demand is now expected to grow at an average rate of 2.5% per year through 2035.

How Taiwan develops its energy system to support this growth - while also decarbonising and safeguarding energy security - remains an ongoing debate.

The opposition KMT party argues nuclear power is the best way to support AI, and has used AI-related electricity demand to justify its recently confirmed nuclear restart referendum (more on that below).

But experts have argued that grid capacity, not electricity supply, is the key constraint on AI data center site selection.

A proposed amendment to the Energy Administration Act (能源管理法) offered another potential solution: requiring large-scale electricity users (still undefined, but likely to be those with contracts above 5MW) to install on-site power generation and energy storage equipment.

The idea is straightforward: make electricity-intensive industries take greater responsibility for meeting their own demand, reducing load on the grid, and ensuring that the massive electricity demand increases caused by AI do not shift onto households.

But recent changes to the amendment, approved by the Legislative Yuan’s Economics Committee in early August, have significantly narrowed its scope.

Under the revised proposal, these requirements would apply only to new or expanded facilities.

This would exclude more than 400 large electricity users, which together account for more than 40% of the power grid, from the stricter requirements.

The changes also weaken the requirements for energy users which remain covered. Rather than having to install both power generation and energy storage equipment, companies could choose just one or the other.

And there is another catch: the power generation facilities would not necessarily have to use renewable energy. Environmental groups have warned that this could allow large electricity users to meet the requirement with fossil fuel generation.

Which companies would be affected?

Around 700 companies currently meet the 5MW or higher threshold. These are mostly semiconductor manufacturers, data center operators, steelmakers, and petrochemical companies.

This threshold originates from 2019 amendments to the Renewable Energy Development Act, which required companies with contracted capacity of 5MW or more to install renewable energy facilities equivalent to 10% of their contracted capacity within five years.

Under the latest changes, most existing large users would be exempt.

Why the sudden change?

Why this change happened - and why it happened so quickly (the amendment passed in just three minutes) is raising eyebrows.

The amendment came shortly after the Chinese National Federation of Industries (CNFI) released a statement calling for existing facilities to be exempted.

Industry representatives argue that imposing the changes on existing facilities would be challenging, as many sites lack sufficient space and face safety constraints when installing new equipment.

Civil society groups, however, have accused lawmakers of giving in to industry demands at the expense of the public interest, denouncing the watered-down amendment as “fake reform, performative action.”

“During the second review, the amendment proposed by legislators essentially copied and pasted the CNFI’s demands” - Greenpeace climate and energy project lead Chang Li-hsin

The Ministry of Economic Affairs says it has held multiple consultation meetings on the proposal, but environmental groups argue the bill was passed without sufficient public participation.

The dispute feeds into a broader concern over Taiwan’s energy policy: that industrial development continues to take priority over environmental considerations, which has been a recurring theme across Taiwan’s history.

Regarding the amendment, civil society groups have put forward three demands:

1. Send the amendment back to committee for further review, with both existing and new large electricity consumers subject to the requirements.

2. Explicitly require companies to prioritize developing renewable energy for their own use.

3. Hold a public hearing before the bill reaches its second reading, allowing affected stakeholders and the wider public to provide input.

Other proposed changes

Several other amendments to the Energy Management Act were considered

One accepted change requires energy suppliers to publish sales statistics.

A separate amendment that would see individuals who deliberately spread rumours or misinformation about energy supplies or infrastructure fined up to NTD 600,000 was rejected.

In other news…

Energy

Energy resilience

• In an attempt to address concerns over energy supply security amid geopolitical uncertainty, the Ministry of Economic Affairs released a statement saying it will strengthen energy resilience by diversifying energy imports, expanding long-term US LNG supplies (including plans to increase US LNG to 25% of imports by 2029) and will prioritise accelerating renewable energy deployment.

Nuclear

• A(nother) nuclear power referendum has been approved by Taiwan’s legislature, passing by 59 votes to 51. The referendum, which will be held in November alongside local elections, will ask voters:

Do you agree that the government should abolish its ‘nuclear-free homeland’ energy policy to ensure public health, stabilize power supply, lower electricity prices, enhance national defense resilience and support the development of the artificial intelligence industry?

• Responses to the referendum announcement argue that:

  • Nuclear power cannot solve the issues outlined in the KMT’s six arguments for nuclear restart (supporting AI, stabilising renewables, lowering electricity prices, strengthening national security, protecting public health, and achieving net zero); renewables and storage can provide faster and more cost-effective solutions while nuclear power carries significant economic, safety, and energy-security trade-offs;

  • Energy policy should not be used as a partisan political tool;

  • Improved energy policy is more important to meeting AI electricity needs than nuclear power;

  • Restarting nuclear is not entirely within Taiwan’s control, due to foreign suppliers, international agreements, export controls, and overseas fuel storage;

• A local briefing on re-starting the No.3 nuclear power plant was held in Hengchun, with local residents focusing on nuclear safety, environmental impact assessments, and nuclear waste. Taiwan Power Company stated there is no timetable for licence renewal, and the process will proceed in line with international safety standards.

Solar

• Taiwan’s new mandatory rooftop solar policy for large (≥1000 m²) new buildings took effect on August 1, but residential buildings, shops and clinics were excluded from the initial rollout. Environmental groups protested the last minute exemption, arguing it undermines the government’s energy transition commitments as it may reduce green energy generation potential by 60%.

• Experts say the biggest challenge for residential solar PV at present is that property developers lack relevant experience. The rest of Taiwan can learn from Kaohsiung, which has already implemented mandatory rooftop solar policies. A third-party investment model has developed, where solar companies finance, install, and maintain rooftop systems while paying rent or other returns to the building owners.

• The Ministry of Economic Affairs has expanded its solar transparency platform to improve public access to project and environmental data, address concerns over corruption, and promote integrity in the renewable energy transition.

• A 3D rooftop solar potential tool that uses building-level data to estimate installable capacity, generation and financial returns by address has been launched by Academia Sinica, Feng Chia University and the Interior Ministry.

• New US import tariffs on silicon will have a limited impact on Taiwanese solar manufacturers, and could accelerate industrial partnerships between Taiwanese and American solar cell manufacturing.

• A 48MW solar + energy storage project in Changhua is expected to be connected to the grid in Q1 2027.

Wind

• Taiwan Power Company has taken over turbine installation for its Changhua Phase 2 project from struggling contractor Foxwell Energy, reaching an agreement with Vestas to install the remaining 30 turbines and targeting grid connection by year-end, with the overall project now more than 90% complete.

• Taiwan approved NTD 73.95 billion in foreign investment for Ørsted’s Greater Changhua offshore wind operations and the Hai Long 2 and 3 projects.

• Taiwan Wind Energy Association has urged the government to make Round 3-3 offshore wind tenders more predictable and financeable, calling for a steady development pipeline, stronger financing mechanisms, streamlined grid and permitting processes, and a more resilient supply chain amid rising costs and project risks. At the same meeting, the Vice Minister of Economic affairs shared his hope to promote Taiwan’s offshore wind industry expertise globally.

• Ørsted said Taiwan’s newly announced offshore wind R3-3 administrative contract and long-term development plan send positive signals for continued industry investment, while its first offshore wind impact report highlights the substantial social and environmental value of GW-scale offshore wind projects.

• The proposed 42–84 MW Changhua onshore wind project has been rejected, with the environmental review committee citing turbines’ proximity to homes and schools, impacts on local dairy and aquaculture industries, bird-collision risks, and inadequate mitigation measures.

Electricity prices

• Ahead of the electricity price review committee’s September meeting, the Minister of Economic Affairs said that the government will continue to prioritise household livelihoods and stabilising prices, emphasising that its policies are not driven by electoral considerations. The chairman of the Chinese National Association of Industry and Commerce said he supported freezing electricity prices for households and small businesses, suggesting that any future increases, caused by rising international energy costs and TPC’s financial losses, should primarily be borne by highly profitable, export-oriented companies.

• Taiwan’s supplementary budget is expected to allocate more than NTD 100 billion to energy-related price stabilisation, including subsidies for gasoline, diesel, natural gas, transport, and fertilizers, in response to higher international energy costs stemming from the Middle East situation.

Taiwan Power Company

• TPC’s pre-tax losses reached NTD 11.3 billion in June, more than double the losses in May, due to the Strait of Hormuz crisis leading to price increases for gas and increased electricity consumption during the summer leading to higher fuel costs.

Grid

• The biggest challenge to site selection for AI data centers is grid capacity, said experts speaking at a sustainable AI summit. Behind-the-meter microgrids, storage, and energy management systems are becoming increasingly essential to manage large and volatile electricity loads and strengthen grid resilience.

• Delta Electronics will increase investments in microgrids, as AI data centers make power managing supply and demand increasingly complex.

Geothermal

• TPC has established geothermal installations with a capacity of 0.84 MW, and cumulative electricity generation of 1,270 MWh, as of June 2026.

Semiconductors

• Major energy solutions company TECO has signed a corporate power purchase agreement with an unnamed “leading semiconductor company” in Taiwan. The agreement is expected to cover 30+MW of renewable generation capacity and 300 million+ kWh of renewable energy.

Protests

• Drilling began for the environmental impact assessment process of a waste incinerator and renewable energy center in Nantou county, sparking protests as the local government had failed to inform the public prior to the work beginning.

Climate

Climate impacts

• Tainan is facing the most climate pressure out of Taiwan’s six major cities, according to new analysis from Greenpeace. Heat pressure is the biggest challenge for Northern cities, while human health and agricultural impacts from typhoons, floods, and droughts are the major challenges facing southern and central cities. Cities should work with residents on community-based adaptation projects, advised Greenpeace.

• Higher temperatures and prolonged droughts could undermine the operational resilience of AI data centers and chip manufacturing, making extreme heat a matter of national security, argues an op-ed in the Taipei Times.

Local elections

• Environmental groups have asked mayoral candidates standing for election in November to sign a pledge to develop sustainable and resilient cities:

Carbon fee

• Revenue from carbon fees should be used to support groups most affected by climate change, including through local adaptation projects, rather than to subsidise business, argued lawmakers and activists at a recent Ministry of Environment public hearing. Almost NTD 5 billion (~USD 155 million) in carbon fees had been collected as of May this year.

• 39 businesses across Taiwan’s 3 major science parks are required to pay carbon fees. The National Science and Technology Council has outlined six measures to help them cut emissions including carbon inventory, green power, process upgrades, and tech tracking.

Nature

• Taiwan’s giant tree forests are among the most carbon-dense ecosystems in the world. Taiwan’s forests are estimated to store around 754 million metric tons of carbon dioxide and absorb more than 21 million metric tons every year.

Business

• Green trademark applications accounted for 14.1% of all trademark filings in Taiwan between 2016 and 2025, with energy conservation the largest category. Taiwanese applicants accounted for 76% of green trademark applications globally, ranking first in the world.

Diplomacy

• Taiwan has an opportunity to shape the global net zero transition as climate diplomacy becomes “freelance” - based more on like-minded coalitions of investors, corporations, and sub-national governments, argues a Taipei Times op-ed.

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Chairing the meeting, President Lai called for offshore wind to be elevated to a national strategic project, praising the sector’s successes: Taiwan has a total installed capacity of 4.9GW, ranking fifth globally.

The President also directed local governments to crack down on illegal actors interfering in green energy development.

Pointing out Western Europe’s deadly heatwave as evidence of growing climate risks, the President put forward three core climate strategies:

1. Strengthen social capacity to act on climate change (升社會行動力): The government should provide clear information, timely warnings, and concrete action guidance so citizens can understand climate risk and participate in adaptation.

2. Build energy stability (厚植能源穩定力): expand domestic low-carbon energy and strengthen grid resilience to address Taiwan’s dependence on imported energy.

3. Protect the vitality of the land (守護國土生命力): protect natural ecosystems to ensure they continue to underpin water retention, flood regulation, and food production.

Building on these strategies, four major reports were presented:

• Status update report tracking progress and outlining next steps on the five follow-up action items assigned at the committee’s 7th meeting: the urban forest initiative, watershed resilience, industrial decarbonization, near-zero carbon buildings, and public participation in climate action. [More below]

• Offshore wind mid-to-long-term development plan setting an ambitious target to expand offshore wind capacity eightfold to 27.9 GW by 2039. [More below]

• Environmental education review: in 2025, 3.3 million people completed at least 4 hours of environmental education. Under the proposed 2028-20231 environmental education plan, one out of these four mandatory hours will be dedicated to climate change. Going forward, the public health benefits of climate action will be highlighted in education initiatives to strengthen public support and policy legitimacy.

• Climate-resilient agriculture report: typhoons, floods, cold snaps, and droughts have contributed to rising agricultural disaster losses (NTD 62.6 billion between 2024 and present). In response, the Ministry of Agriculture is undergoing a policy shift moving from reactive disaster relief toward “smart,” precision-based climate risk management combined with nature-based ecological solutions.

Progress tracking - the committee marks its own homework

• Urban forest initiative: a national Urban Forest Promotion Committee has been convened by the Deputy Premier. Over 1,500 people have joined public consultation sessions on the initiative. Six working groups have been established to ensure expert perspectives will be considered. A dedicated law for tree management on public land is expected to be completed by the end of the year.

• Watershed and flood basin resilience: over 6,000 potential landslide sites have been flagged, with enhanced slope resilience measures planned. Nature-based approaches to water management have been strengthened to improve water quality and conservation.

• Industrial decarbonization: regulatory amendments have been made to unlock renewable energy deployment across land use, geothermal rights, and equipment safety. An AI advisory team has supported over 8,000 company visits to drive green/digital transformation. The carbon fee system is now live, with almost NTD 5 billion collected so far. The system is backed by a pilot emissions trading scheme, and a Taiwanese CBAM (carbon border tax) is under “cautious evaluation.”

• Near-zero carbon buildings: almost 20,000 public buildings have been assessed for energy efficiency so far, with full retrofitting targeted for 2028. Building energy labels are required for real estate listings. Urban planning rules are being revised to build in climate and flood resilience.

• Public participation: a new green transport platform launched earlier this month links public transit use to rewards and carbon tracking. Carbon labelling and credit schemes are being expanded for farmers. Enhanced climate education is being rolled out in high schools.

A bullish offshore wind plan

Historical successes:

• Taiwan ranked 5th globally in cumulative offshore wind capacity and 3rd in single-year installations in 2025.

• 508 wind turbines have been installed across 6 completed wind farms, with 3 more farms under construction, bringing total installed capacity to 4.9 GW.

• 2025 offshore wind generation topped 10 billion kWh, up ~20% year-on-year.

• All commercial wind farms have withstood 4 major typhoons since 2024 with zero damage.

• Round 3.1 and 3.2 have allocated ~4.4 GW. Round 3.3 targets ~3.6 GW with selection set to be completed by the end of this year.

Future ambitions

• Rounds 4 and 5 are expected to target 8 GW each, with grid connection targeted for 2032-2035 and 2036-2039 respectively.

• 2-3 floating wind demonstration projects of 100-200MW each are targeted for 2032-2033.

• Policy targets: 10.9 GW by 2030, 18.3-19.9 GW by 2035, 24.7-27.9 GW by 2039.

• Estimated carbon reduction impact: ~36.8 million tonnes CO2e by 2030, rising to 61.8-67.2 million tonnes by 2035, and 83.4-94.2 million tonnes by 2039.

Policy support

• Four supporting pillars to achieve these goals have been identified: clear policy targets, domestic supply chain development (manufacturing, marine engineering, O&M training), financial support, and administrative efficiency.

• Financing: banks have signed NTD 638.9 billion in offshore wind project financing (as of March 2026); insurers have approved NT$86.5 billion in green energy investments (as of May 2026).

• National financing guarantee mechanism: NT$9.63 billion in guarantee funds (10x leverage), with 17 cases approved totalling NT$66.05 billion in guarantees.

• Local supply chain: 30+ domestic firms now have marine engineering track records extending to European markets; six offshore wind training centres trained ~2,900 people in 2025.

Experts respond

Speaking to the Environmental Information Center, experts highlighted a few issues worth paying attention to following the new offshore wind plan:

• Clarifying potential usage conflicts (e.g. with fishing, military activities) with the newly identified offshore wind development zones, and ensuring integrated planning for submarine cables and onshore grid connection infrastructure.

• Grey-zone security risks as wind farm development moves into more sensitive waters.

• Rising curtailment during high-wind, low-demand periods.

• A financial roadmap is needed to ensure developers can secure funding.

In other news…

Energy

Industry

• Industrial electricity consumption rose for the 15th consecutive month in June, with corporate renewable energy purchases driving growth. Semiconductor electricity consumption rose 8% year on year.

• Taiwan’s legislature is reviewing amendments to the Energy Management Act that would require large electricity users, such as semiconductor manufacturers and AI data centres, to install on-site power generation and energy storage to reduce pressure on the grid. The Ministry of Economic Affairs said the proposal would initially apply to businesses with contracted demand of 5 MW or more, covering around 700 companies.

Corruption

• A retired Taiwanese navy rear admiral has been detained on suspicion of using his position as commander of the Navy’s Zuoying Logistics Support Command to help a solar power company secure a NTD 50 million (USD1.55 million) government contract to install solar panels at the command.

• Taiwan Power Company has dismissed the former director of its Second Nuclear Power Plant after he was sentenced to seven years in prison in a bribery case involving NTD 2.2 million in kickbacks linked to procurement contracts. TPC has pledged to strengthen its anti-corruption efforts.

Critical infrastructure

• Taiwan Power Company plans to invest NTD 25 billion (USD 770 million) to enclose the switchyards at two hydroelectric plants, including the Mingtan Power Plant at Sun Moon Lake, as part of efforts to better protect critical energy infrastructure.

Fuel prices

• Gasoline and diesel prices will increase this week, by NTD 0.7 and 0.4 respectively, reflecting global price increases. CPC is absorbing the majority of the price increases (NTD 6 and NTD 5.7 per liter). This cost absorption strategy means Taiwan now has the lowest fuel prices among neighbouring Asian economies.

Solar

• Two Taiwanese energy companies will invest USD 40 million in a US-based solar module manufacturing facility to capitalise on growing demand for green energy from AI data centres.

Wind

• Taiwan’s Century Wind Power, the country’s largest offshore wind foundation manufacturer, plans to expand beyond renewable energy into nuclear and hydrogen equipment manufacturing.

Geopolitics

• An op-ed in the Taipei Times explores the debate over connecting Kinmen1 to China’s electricity grid, arguing that while the proposal could significantly reduce energy costs, it would deepen the island’s dependence on Chinese infrastructure and pose long-term energy security risks.

Climate

Impacts

• To prepare for the landfall of Typhoon Nari, Taiwan Power Company has mobilised more than 7,200 personnel, 3,300 vehicles and 3,900 pieces of equipment, and has inspected power systems at livestock farms to reduce the risk of outages and economic losses.

Adaptation

• A heat injury micro-insurance pilot project was launched in Tainan to reimburse patients hospitalised due to heatstroke. Currently, more than 3,000 people every year seek medical help for heat-related medical issues, with elderly people particularly at risk.

• Responding to the pilot project, a Taipei Times editorial calls for greater heat protection for outdoor workers through the introduction of clearer temperature-based occupational safety standards.

Mitigation

• The Ministry of Environment has proposed letting heavy industries such as steelmakers use older carbon credits earned before 2015 to reduce their carbon fee bills.

• Carbon credit cooperation was the focus of a workshop attended by representatives of 11 of Taiwan’s diplomatic allies.

• A temple in Miaoli has started offering carbon offsets to visitors through a carbon credit scheme.

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A proposed fourth referendum on reactivating nuclear plants, backed by the opposition alliance, has been fast-tracked directly to a second reading. If the proposals are approved, as seems likely, the referendum will be held on Nov. 28 alongside local elections. The referendum would ask voters:

”Do you agree that the government should abolish the ‘Nuclear-Free Homeland’ policy to ensure public health, stable power supply, cheap electricity rates, enhanced national defense resilience, and support for the development of the artificial intelligence (AI) industry?”

The National No-Nukes Action Platform called the referendum “wasteful,” “ineffective,” and part of the KMT party’s “political show”:

“Energy policy should be based on scientific evidence, rational deliberation, and democratic procedures, not reduced to political hostage-taking and populist votes that divide society.

Taiwanese society should condemn this cynical political maneuvering and demand that these politicians, who are shirking their responsibilities, confront the fundamental challenges of nuclear safety and nuclear waste management instead of avoiding them.

What Taiwan needs is a diversified, safe, and more resilient green energy future—not to be dragged back into the high-risk, highly contentious quagmire of nuclear power by lawmakers who are out of touch with the hardships facing ordinary people.” - Taiwan National No-Nukes Action Platform (machine translated)

Taiwan blockade could devastate global economy

Any disruption to Taiwan’s power supply caused by a Chinese blockade cutting off energy imports could trigger economic damage exceeding that of the Great Depression if semiconductor production is brought to a halt, warned former Intel CEO Pat Gelsinger.

In a statement responding to Gelsinger, the Ministry of Economic Affairs warned against scaremongering based on “excessive speculation” and defended the resilience of Taiwan’s semiconductor supply chain and energy system:

“In the past, Taiwan has effectively responded to and maintained stable industrial operations despite numerous strong earthquakes, global logistical disruptions caused by the COVID-19 pandemic, and multiple international energy crises… Taiwan has never experienced a complete disruption of its semiconductor supply chain. In the past, during multiple global chip shortages, Taiwanese industries cooperated to accelerate supply, demonstrating Taiwan’s sufficient capacity to respond to supply chain security and energy stability.” - Ministry of Economic Affairs (machine translated)

In other news…

Energy

Nuclear

• The Nuclear Safety Commission will hold a second public consultation on 1 August in Pingtung County as part of its review process of whether to renew the operating licence that would allow the restart of Taiwan’s No. 3 nuclear power plant.

• Nuclear power is needed to support the growth of AI and improve energy security, said the chairman of one of Taiwan’s most influential business associations. He called for nuclear power to reach at least 15% of Taiwan’s energy mix.

Gas

• LNG imports from Papua New Guinea are under review after the country unexpectedly ordered the closure of Taiwan’s Representative Office. Taiwan imports around 1.2 million tonnes of LNG from Papua New Guinea annually, equivalent to approximately 4.5% of Taiwan’s total LNG imports in 2025.

Semiconductors & AI

• Large electricity consumers with a contracted capacity of at least 5,000kW will have to install on-site power generation and energy storage equipment, under a proposed update to Ministry of Economic Affairs regulations. The change would impact more than 4,000 companies, including semiconductor manufacturers and AI data centers.

• Taiwan Power Company said it would support plans to establish AI data centre zones near power plants in northern Taiwan, as long as proposed sites would not overload local grids and substations.

• Taiwanese component suppliers, integration and service partners are expanding their role in the solid oxide fuel cells (SOFCs) supply chain, as surging power demand from AI data centers drives interest in the technology as a reliable on-site power source.

Disinformation

• Research on climate and energy misinformation in Taiwan highlights four primary themes: renewable delayism, distrust in power infrastructure, nuclear distraction, and misleading climate action. An op-ed in the Taipei Times argues that the KMT opposition party uses these disinformation narratives to obscure its broader energy policy:

“What is the KMT’s real energy policy? If neither nuclear power nor renewables are supported, it appears that the KMT wants to tie Taiwan to fossil fuels. It may be that the KMT prefers fossil fuels because its business allies and Taipower — long close to the KMT — love them.

It is probably just a coincidence that increased reliance on fossil fuels will make the island far easier to blockade.” - Michael Turton in the Taipei Times

Wind

• The original developer of a Yunlin offshore wind farm has been fined NTD 11.6 billion for contract breaches related to construction delays and equity transfers. The wind farm was originally scheduled to begin operations in 2021 but only achieved commercial operation in August 2025 after ownership changes and project delays.

Solar

• World-leading Taiwanese solar panel recycling experts visited Japan to exchange expertise.This follows the introduction of a bill to promote the recycling of solar panel waste, approved by the Japanese Cabinet earlier this year.

Biofuels

• Taiwan is revisiting ethanol-blended petrol as a way to cut transport emissions and reduce reliance on imported fossil fuels, although infrastructure upgrades, vehicle compatibility and fuel supply remain key challenges.

Climate

Impacts

• Orange heat alerts have been issued for Taipei, New Taipei, Taoyuan, Changhua County and Hualien County, indicating a high likelihood of temperatures exceeding 36°C for three consecutive days.

• Damage from Typhoon Bavi caused almost 23 million NTD (~70k USD) in agricultural losses, with persimmons the hardest hit crop.

Adaptation

• Automated sunshades have been installed at some pedestrian crossings in major cities as part of a pilot project to provide shade for people waiting to cross the road. However, experts say such shelters are only a short-term solution, arguing that long-term urban planning should prioritise tree planting and expanded green spaces.

• Taiwan’s Ministry of Environment has unveiled six priorities for its national urban forestry strategy, which aims to boost climate resilience and reduce urban heat. The priorities include dedicated legislation, a digital twin platform to monitor cooling benefits, stronger tree protection, and expanded public participation.

• Disability advocates warned that climate change disproportionately affects people with disabilities, citing examples including high temperatures increasing fatigue and the power needs of assistive devices, cold weather worsening mobility for people with cerebral palsy, heavy rain making navigation more dangerous for visually impaired people, and prolonged power outages threatening those who rely on electric wheelchairs, oxygen equipment and other devices. They called for climate adaptation initiatives, including disaster prevention, to incorporate the experiences of people living with different disabilities.

Mitigation

• Soil carbon sinks will be promoted by a new MOU signed between the Taiwan Carbon Solution Exchange (TCX) and the Taiwan Agricultural Research Institute.

Finance

• A subsidy programme funded by carbon fee income has been launched to provide up to 50% co-financing for emissions reduction and climate adaptation projects.

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My new role is focused primarily on China’s energy transition (more on LinkedIn if you’re interested), but the increased flexibility should also give me more time to write and think about Taiwan’s energy dilemma in my personal capacity. As always, if you’d like to chat or collaborate, I’d love to hear from you!

London Climate Action Week

As part of onboarding for my new role, I spent most of June in the UK and experienced first-hand the irony of participating in London Climate Action Week during a deadly European heatwave.

Despite the sweat and sauna-like tube conditions (oh, how I missed Taiwan’s air conditioning), I was delighted to attend the (I believe first-ever) Taiwan-focused event held during LCAW.

One of the key questions emerging from the discussion was how Taiwan can avoid fossil fuel lock-in in the name of energy security - an even more pressing question given 5.2GW of new gas-fired generating capacity is set to come online this year.

Wargaming 40°C

While we were sweltering in record-breaking temperatures of up to 35°C in the UK, Taiwan held its first-ever heat adaptation wargame aimed at preparing the public for 40°C+ temperatures.

34 government units convened to practice responses to the impacts of extreme temperatures on infrastructure, including medical care, electricity, water supply, transportation, and fire protection.

Based on the drill, the Ministry of Environment plans to outline response measures to extreme heat in the fourth phase of the National Climate Change Adaptation Plan, due to be completed by the end of the year. Extreme heat is also expected to be added to the Disaster Prevention and Protection Act.

Celebrating 500 turbines

A major offshore wind milestone also happened in June - Taiwan’s offshore wind sector installed its 500th unit, with capacity now at 4.8 GW.

According to the Global Wind Energy Council’s Global Wind Report 2026, Taiwan ranked third globally for new offshore capacity additions and fifth in total installed offshore wind capacity.

It’s an impressive achievement, especially considering it was accomplished in just 9 years. Taiwan’s first demonstration turbines were installed in 2017.

The true challenge will be whether this momentum can be sustained amid mounting pressures, including the delisting of Shinfox Energy, a major player in the offshore wind sector, from the Taiwanese Stock Exchange (more on that below).

The challenges facing Taiwan’s offshore wind sector, and its energy transition more broadly, are explored in an interesting (though, in my opinion, quite sensationalist, especially as it gives a lot of airtime to a rather controversial figure) podcast on Taiwan’s so-called “war on renewables” that was released by Substack darling ChinaTalk earlier this month. I’m curious to hear your opinions on the arguments made in the episode!

Typhoon Bavi

Now back in Taipei, I was glad that Typhoon Bavi’s impact on the capital was less severe than anticipated. Bavi was expected to be the largest storm to hit Taiwan since 1987, so along with many of our neighbours, we stocked up on bottled water and 泡麵 ahead of the weekend.

Despite MRT services being suspended in the capital, hundreds of Pokémon Go players defied the weather to gather at Taipei Main Station for the game’s 10 year anniversary festival.

However, across Taiwan, 113 people were injured as a result of the typhoon, over 14,600 residents were evacuated due to flooding and landslide risks, and 240,000 households experienced power outages.

With a strong El Nino weather pattern expected this year, and climate change making its impact especially severe, Taiwan is forecast to experience up to five tropical storms this year.

In other news:

Energy

• Taiwan’s Ministry of Economic Affairs has shifted its renewable energy targets from measuring generation share to tracking installed capacity in its latest National Electricity Supply and Demand Report.

• Responding to the new report, experts say using installed capacity as the key metric can better show the scale of renewable energy development, as the share of renewable energy generation may decrease even if renewable generation increases as electricity demand rises due to the expansion of the semiconductor and AI industries. However, they recommend including indicators measuring how much power is delivered, not just how much has been built, to better assess whether new renewable resources actually provide reliable, low-carbon electricity.

• The Ministry expects that renewable energy will contribute 15% of total electricity generation by the end of the year.

Taiwan Power Company (TPC)

• 5.2GW of new generating capacity is expected to come online this year from four new gas-fired units: Taichung Power Plant’s Units 1 and 2, and Kaohsiung Hsinta Power Plant’s Units 1 and 2.

• TPC’s losses could be kept within NT$28 billion (US$878.22 million), as mandated by the government, if natural gas prices decrease. The state-owned power company reported a pretax loss of ~NT$9 billion between January and April of this year.

CPC

• A CPC chartered oil tanker carrying 2 million barrels of crude left the Strait of Hormuz in late June and is expected to arrive in Kaohsiung in the middle of July.

• CPC made the right choice in freezing fuel prices for 11 weeks following the Strait of Hormuz crisis, argues a Taipei Times opinion piece:

“The government’s dual-price stabilisation mechanism for gasoline and diesel has successfully kept fuel prices among the lowest in neighbouring Asian markets and checked inflation at safe levels. This has helped to protect ordinary people’s livelihoods, and given businesses across sector lines a stable environment in which to develop.” Wei Chi-hung, president of the Taiwan International Cultural and Educational Public Interest Association

Solar

• Taoyuan City has published the first local-level guidelines for solar projects, which include a greater focus on environmental impact, public communication, safety, and end-of-life removal and recycling.

• An unprecedented drought at the end of May caused the water level at Tainan’s Wushantou Reservoir to fall so low that 11.5 hectares of floating solar panels grounded on the reservoir bed, damaging the equipment. The incident highlights how extreme climate conditions can create new risks for renewable energy infrastructure.

Misinformation

• Following the above incident, misinformation claiming the damaged floating solar panels had leached heavy metals into the Wushantou reservoir circulated online. The Energy Administration refuted this claim, with water sampling tests conducted at the reservoir showing that all water quality standards were met.

• Taiwan’s energy system has become the focus of a “narrative war,” with misinformation on the net-zero transition appearing on social media and in local council discussions. Researchers analysing Facebook and TikTok ads about energy policies found that the total views across all ads supporting green energy in Taiwan were fewer than the views of a single ad opposing green energy and supporting nuclear energy.

Wind

• The government is revising its offshore wind bidding process to place more emphasis on developers’ financial strength and project delivery capability, following the delisting of Shinfox Energy, contractor of the Phase 2 Changhua offshore wind project. TPC has said the project remains about 90% complete, but installation of the remaining 30 turbines is on hold while it renegotiates contracts. The Minister of Economic Affairs says he expects all turbines will be installed by the end of the year, with the project set to come online at the beginning of 2027.

• Ageing wind turbines must be inspected, ordered the government, after a Taipower turbine in Yunlin caught fire at the end of May.

Nuclear

• The opposition KMT party plans to propose a referendum on restarting nuclear power, to be held alongside local elections later this year. KMT chairperson Cheng Li-wun argues nuclear power is critical for energy security, industrial competitiveness, AI development, low electricity prices, and national resilience.

Geothermal

• The binding restraint for developing geothermal projects in Taiwan is exploration risk, argue geothermal developers. Taiwan could learn from Japan and develop a state-owned institution to share the upfront risk, argues Romain Blachier.

AI

• Speaking at the beginning of June following NVIDIA CEO Jensen Huang’s visit to Taiwan, President Lai Ching-te sought to reassure investors that Taiwan’s power supply is sufficient for the AI era. Lai also reiterated that while Taiwan will continue to expand renewable energy, the government is open to restarting existing nuclear reactors if they meet legal requirements for safety, nuclear waste disposal, and public consensus.

• A dispute over how and where to build a new substation for NVIDIA’s planned Taiwan headquarters has become a topic of contention ahead of the Taipei mayoral election, with the Taipei City Government and TPC disagreeing on whether the substation should be built above ground or underground.

• A Taipei Times editorial calls for Taiwan to “adopt power forecasting models to anticipate AI-driven demand, upgrade transmission infrastructure and guarantee grid stability” to support semiconductor manufacturing and AI - the main growth engines for Taiwan’s economy.

• TPC is using AI models to improve the flexibility of power system dispatch by improving forecasting for solar and wind power generation.

Bio-gas

• The Biogas & Biomass Energy Industry Alliance was launched by the Ministry of Environment in June. The ministry claims biomass has the potential to produce 1.36 billion kWh of green electricity per year.

• In response to the announcement, a Taipei Times column explores the challenges facing the Taiwanese chicken farmers who hope to develop manure-to-biogas projects.

Sustainable aviation fuel

• Thinktank CIER released a white paper proposing a strategic roadmap for developing Taiwan’s sustainable aviation fuel (SAF) industry from 2026 to 2035, emphasising the need to build domestic supply, stable market mechanisms, and supportive policies to strengthen decarbonization, energy security, and industrial competitiveness.

Climate

Emissions

• The latest national greenhouse gas inventory was released in June, showing that emissions in 2024 decreased by 6.59% compared to the 2005 baseline year, better than the global average. The energy sector saw a reduction in YoY emissions for the first time since the Climate Change Response Act was introduced.

• National emissions are projected to fall by 9% from 2005 levels at the end of this year, slightly below the 10% reduction target.

• If Taiwan is to meet its 2030 target of reducing emissions by 28(±2)%, the government must address the slow progress of renewable energy development, warn climate activists.

• Taiwan’s first climate lawsuit has failed after a five-year legal process. The lawsuit sought to compel Taiwan’s Ministry of Economic Affairs to strengthen the “major electricity users” regulations so that large corporate electricity consumers would be subject to stricter requirements for renewable energy and emissions reduction.

• Carbon footprint labels have been added to tea products for the first time

Carbon fee

• Under Taiwan’s newly launched carbon fee system, voluntary emissions reduction efforts by 402 factories are expected to cut carbon emissions by 45.2 million tonnes annually by 2030.

• The government’s greenhouse gas management fund has already received almost NTD 5 billion in revenue from the carbon fee system. The government has released plans to use the revenue to fund a series of climate subsidies. With Taiwan’s electricity demand expected to grow at 2.5% annually between 2026 and 2035, experts have called for the government to reward actual energy savings with subsidies, rather than just subsidising purchases of energy-efficient equipment.

Divestment

• Taiwanese government labour funds and Chunghwa Post savings have invested over NTD 54 billion (~ USD 1.9 billion) in fossil fuel companies, according to a new report published by environmental groups. These combined investments are worth nearly seven times the Ministry of Environment’s annual NTD 8 million budget.

• Cathay Life Insurance said it will expand its coal divestment policy, pledging to stop making new equity investments by 2040 in companies that generate more than 5% of their revenue from coal-related businesses.

Politics

• Candidates in Taiwan’s upcoming local elections have been urged to present concrete climate policies by activists.

Climate adaptation

• Taiwan and Japan have signed an MOU to jointly promote green business opportunities in heatwave protection technology and disaster prevention industries.

• An insurance firm is set to launch a heat injury pilot program, which will provide a fixed insurance payment of NTD 10,000 for patients hospitalised due to heatstroke.

• A new urban forest strategy will be presented by the end of the year, based on 50 public consultation sessions held nationwide.

Industrial decarbonisation

• More than 500 SMEs have been supported by the Ministry of Economic Affairs’ industrial decarbonisation program, which has made carbon reductions of over 10,000 tons of CO2e.

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Over the weekend, I attended a forum titled “Energy Transition is National Security” featuring Japanese renewable energy expert Mika Ohbayashi.

Of particular interest to me were the similarities between the crisis response measures of Taiwan and Japan (another island country highly dependent on imported fuels) to the current global energy disruption - and how these responses “reduce short-term pain, but do not sufficiently reduce fossil-fuel exposure.”

The following table succinctly captures the structural problems arising from current crisis response measures:

In response to Ohbayashi’s presentation, TCAN research director Chia-Wei Chao pointed out that Taiwan’s three major responses to the energy crisis :

• securing alternative LNG supply

• subsiding oil and power prices

• restarting the Mailiao coal plant

pose the same risks.

According to Chao, massive fossil fuel subsidies - in the form of freezing electricity tariffs - could see TPC’s additional losses exceed NTD 180 billion by the end of the year.

Taiwan’s original aim to cut coal’s share of generation from 35% to 30% this year is under threat due to coal plant restarts, which could lead to an additional 7 million tonnes of CO₂ emissions this year. This equals around 3% of Taiwan’s total emissions.

Finally, Chao argued that the proposed restart of the No.2 and No.3 nuclear power plants contributes to the nuclear saviour “myth” that only nuclear power can ensure energy security. For a deeper dive into the current nuclear vs. renewables debate (and some Mandarin listening practice) I recommend watching this new video interview with Chao.

To overcome these issues in both Japan and Taiwan, Ohbayashi suggests prioritising energy self-sufficiency through the “no-regret” strategy of accelerating renewable energy, energy efficiency and electrification.

“Taiwan’s Economy Is Soaring. Its Energy Strategy Could Hold It Back.”

My top reading recommendation this week makes the same argument. Matt Bowden explores how Taiwan’s continued dependence on imported fuels and its “agonisingly slow pace of electrification” risks undermining its economic future success and national security.

In contrast, Matt points to how China’s energy resilience strategy and relentless electrification push has successfully enabled self-sufficiency:

Is [Taiwan’s] future economic success even possible in the medium to long-term if it is powered by a reliance on imported fossil fuels, when our competitors are being swept along by the compounding benefits of reliable, locally-sourced renewable power? Do we want our capacity to generate electricity to be a source of strength, or a fatal vulnerability that heightens Taiwan’s exposure to geopolitics, volatile commodity prices, and the national interests of distant petro-states?

However uncomfortable it may be for some to admit, perhaps our largest neighbor’s success in building out a more resilient, secure, and sustainable electricity generation system presents some lessons from which Taiwan can learn.

In other news…

Energy

Oil & Gas

• In response to international media reports that Taiwan’s stockpiles are running low, the Ministry of Economic Affairs has confirmed that oil and gas supplies are expected to remain stable until September, thanks to CPC’s diversification efforts - which includes a procurement database. The government also plans to expand energy conservation efforts alongside grid-level and behind-the-meter storage as part of its energy resilience plans.

• Gas prices for domestic and industrial consumers will remain unchanged in May, with prices for utility users rising 9.34%. Since March, CPC has absorbed NTD 138 billion in costs for industrial users.

• For an in-depth analysis of the impacts of the Hormuz crisis on Taiwan’s LNG supply chain, and Taiwan’s responses to date, I highly recommend this op-ed written by my good friends I-Ting Juan and Chen-Yen Chang.

• Following Australia’s announcement that LNG exporters must reserve 20% of gas for the domestic east coast market, Taiwan’s MOEA has confirmed the new policy will not affect Taiwan’s existing LNG contracts with Australian suppliers. Shipments coming from Australia’s spot market may be affected, in which case MOEA plans to secure alternative sources from the US and the Asia-Pacific region. Australia supplied around ⅓ of Taiwan’s LNG imports last year.

• The Hormuz crisis reveals the challenge Taiwan’s energy vulnerabilities pose to its “silicon shield,” argues this feature from Bloomberg:

With any meaningful fix years away, the country is essentially playing for time: keeping Beijing at bay and hoping any supply disruptions are brief, while it works to diversify its power sources. A US diplomatic official likened this approach to a duck paddling, appearing serene on the surface but working furiously underwater.

• Following opposition legislators’ plan to tighten the Air Pollution Control Act to impose limits on thermal power generation units, TPC has said it has already stepped up efforts to reduce air pollution from generation units, and the new amendments pose a serious threat to electricity supply stability. A review of the draft amendments suggests that 8,000 companies could be affected, as 60% of pollution permits issued nationwide are related to consumer industry. A public hearing on the amendments will be held on May 14th.

Nuclear

• Fuel rods are not interchangeable between Taiwan’s four nuclear power plants, clarified TPC after an opposition legislator questioned spending NT$8 billion on new fuel rods for the No.3 plant (currently under review for a potential restart), while unused rods from the No.4 plant are being shipped back to the US. Storing the fuel rods on-site would be more costly than sending them overseas.

• Following media reports that the No.3 nuclear power plant was planning to procure fuel rods, the MOEA has clarified that the plant can only load rods after safety inspections have been completed, reviewed and an operating licence issued.

• The Nuclear Safety Council held a local briefing in Hengchun Township, Pingtung, to explain the operating licence renewal process to the public. Youth and civic groups protested against the restart outside the briefing.

• Ahead of the seventh National Climate Change Committee meeting, five committee members from environmental groups issued a joint statement proposing an “Emergency Plan for Safeguarding the 2.0 Energy Transition,” calling for Taiwan’s Energy Information Platform to provide more comprehensive information on nuclear power for the public to review.

• Foreign nuclear energy experts will be allowed to naturalize as Taiwanese citizens without renouncing their original citizenship in a proposed update to the “Standards for Defining High-Level Professionals for Naturalization.”

Taiwan Power Company (TPC)

• At TPC’s 80th anniversary celebration on April 30th, its chairman shared that total electricity demand is expected to grow this summer, with the nighttime peak load potentially reaching a record high in excess of 38 million kilowatts. As new generating units gradually come online, the power supply situation is expected to remain stable, with the nighttime peak reserve margin likely staying above 7%.

• Also at the celebration, the chairman pointed out that TPC is facing three major changes: climate change, geopolitics, and the surge in electricity demand from AI. To meet these challenges, TPC aims to diversify power generation sources and integrate power development with urban planning.

• In honour of its 80th anniversary, TPC has introduced a new logo and font, which some have criticised as “too simple” or a political move.

“Embracing change is not a bad thing. While everyone may have different reactions to the new corporate visual identity, we hope the public will refrain from making excessive political associations and instead focus on Taipower’s ongoing efforts to ensure stable power supply and serve the public.” - TPC statement on facebook addressing public comments on its logo redesign.

• Over 9,000 people participated in TPC’s 2026 recruitment exam, with only 770 expected to be hired. Successful candidates will receive a starting monthly salary of between NTD 38,000 - NTD 40,000 (~GBP 940, Taiwanese salaries never cease to surprise me). Taipower’s 30,000+ employees have an average age of 42.

• TPC’s annual creative exhibition (on until the end of the month) repurposes retired energy equipment into cups, bowls and other tableware.

Grid

• Taiwan Power and Energy Engineering Association has called for electricity users to become active participants in grid balancing by transforming from consumers into producers and sellers of electricity.

• A new op-ed in Taiwan Insight calls for energy security to be treated as a core condition for power sector planning:

Taiwan’s green transition requires a shift not only in technology, but in how energy systems are planned and governed. First, energy planning should move beyond static assumptions of demand and incorporate scenarios that account for continued technological expansion, particularly from AI and digital infrastructure. Second, system design must prioritise resilience alongside efficiency, including partial energy independence, expanded storage capacity, and the ability to degrade gracefully under conditions of constraint.

• A power outage in Taichung that affected more than 2,000 households was caused by equipment malfunction. Engineers resolved the outage within an hour and a half.

• A landslide in Gonguan township, Miaoli snapped a power line.

Semiconductors

• Following reports that TSMC is seeking approval to build advanced - potentially “Angstrom-era” - fabs at the Longtan campus of the Hsinchu Science Park, TPC has vowed to provide a stable electricity supply to meet power needs of the development.

Solar

• The former mayor of Yunlin’s Kouhu Township has been sentenced to 10 years in prison for soliciting bribes from solar power companies during his time in office.

• The Ministry of the Interior has equipped 37 sewage treatment plants with solar panels, totalling a combined installed capacity of 14.35 MW.

Geothermal

• A public platform that will share the results of government-led surveys and geothermal exploration studies has been set up with the aim of shortening evaluation time for developers by 3 to 5 years.

Hydrogen

• Delta Electronics’ first hydrogen fuel cell has been delivered to TPC and is expected to begin trial operation in May. The company plans to build a new plant for hydrogen fuel cell development in Guanyin, Taoyuan, with shipments from the production line expected to begin in 2028.

• Chemicals manufacturer Daily Polymer Corp is entering the green hydrogen sector, reporting progress in photocatalytic hydrogen production - converting solar energy directly to hydrogen using semiconductor polymer photocatalyst materials.

Finance

• Taiwan’s state-backed banks significantly increased green energy lending in Q1, driven mainly by offshore wind and solar projects.

Biofuel

• Taisugar and American NGO US Grains and BioProducts Council have signed an MOU on biofuel technology to develop sustainable aviation fuel (SAF). Taisugar plans to start producing small quantities of new biofuels made from molasses (a byproduct of sugar production) by the end of the year.

International Cooperation

• On a visit to Eswatini, Taiwan’s last remaining diplomatic ally in Africa, President Lai visited the country’s Taiwan-funded strategic oil tank and industrial innovation park, calling the development the largest and most strategically significant cooperation project since the establishment of diplomatic relations between the two countries.

• A visiting Australian MP said the Australia-Taiwan energy partnership is vital to both economies. Taiwan relies on Australia for over 30% of its LNG imports, and almost 50% of its coal imports.

Climate

• The seventh meeting of the National Climate Change Committee took place on April 30th, with the Ministry of Environment’s climate adaptation plan to increase green cover through a national tree planting plan the star of the show:

  • Urban forests should be considered national infrastructure comparable to water and power supply, said President Lai. A nationwide tree-planting plan is in the works, which will double green space to “enhance national defence.”

  • Environment Minister Peng Chi-ming said the plan’s goal is for there to be one tree per person in cities, which could help reduce the perceived air temperature by 8 degrees.

  • Other committee members called for the plan to be integrated with university campuses, industrial land, urban planning, and public-private partnerships.

  • More on the meeting here

• Taiwan’s four major state-run funds, which have total assets of NT$15 trillion (US$474.61 billion), are not aligned with net zero goals, say environmental groups calling for climate-related financial disclosures.

• The Minister of the Interior has called on the public to complete flood and typhoon preparations as soon as possible, including by downloading the fire and disaster prevention app, as the return of El Niño means rainfall and typhoon dynamics will be even more uncertain this year.

• Taiwan’s new carbon fee system - which will target some building materials such as steel and cement products - will have a miniscule impact on overall housing prices, says the Ministry of Environment, urging developers not to use the carbon fee as an excuse to hike housing prices. Recently, a construction company claimed that the carbon fee would lead to a 5% increase in construction costs.

• A tuition fee discount is on offer for graduating high school students who plan to develop “green collar” careers.

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This kind of cognitive warfare is nothing new.

As I explore in a new article for the Global Taiwan Institute, co-authored with my good friend Elena, China has long used energy security concerns in its Taiwan-focused propaganda in an attempt to manipulate public opinion and undermine trust in the government.

On the one hand is the carrot: positioning China, with its world-leading renewable energy industry, as the “saviour” to Taiwan’s energy woes, which it claims have been brought about by the DPP’s policy mismanagement

On the other is the stick: frequent maritime drills simulating how China could blockade or even strike critical elements of Taiwan’s energy infrastructure.

It’s vital to make this contradiction clear to people in Taiwan and across the world: China is positioning itself as the guarantor of Taiwan’s energy stability, while simultaneously generating the very risks—the threat of a blockade or quarantine—that undermine it.

Understanding, exposing, and countering energy-related cognitive warfare must become a priority for Taiwan’s partners. Energy is the cornerstone of modern life, and any attempts to weaponise it for coercive ends—as we’ve seen with Russia’s ruthless attacks on Ukraine’s energy system during freezing winter conditions—must be robustly challenged.

I hope you enjoy the article, and I look forward to hearing your thoughts!

In other news…

Energy

Iran Crisis

• Taiwan’s oil and gas stockpiles (currently at 140 and 12 days respectively) remain stable and sufficient, according to the Ministry of Economic Affairs.

• American think tank Foundation for Defense of Democracies praised Taiwan’s response to the Iran crisis (signing new LNG deals with the US and Australia, beginning the nuclear restart process) as shoring up its energy weak spots:

“Taipei has strengthened its hand by reforming its supply chains. In diversifying its suppliers, expanding backup sources of power and improving economic ties to the US, Taiwan has embraced an unorthodox deterrence-by-denial strategy: The nation’s resilience forces Beijing to move out of the shadows to continue its coercion campaign, raising the prospect of drawing Washington’s and the region’s ire.” - Mark Montgomery and Jack Burnham, FDD

Nuclear

• The restart plan for Maanshan No.3 nuclear power plant has begun, according to the Nuclear Safety Commission. Safety inspections could take up to two years.

• Following the launch of the process that could see two of Taiwan’s decommissioned nuclear plants restarted, CNA offers an overview of why President Lai reversed the DPP’s longstanding anti-nuclear policy (short answer: AI, energy security, CBAM), why environmentalists argue renewables are a better option (short answer: nuclear will take too long and won’t actually generate much electricity), and the political drivers for the DPP (short answer: changing public opinion on nuclear, US support for nuclear).

Offshore Wind

• French utility EDF has submitted a formal request to the Energy Administration to terminate its contract for the 440 MW Blue Sea Changhua offshore wind project, which it won in round 3.1 in 2022. The government attributes this withdrawal to the company’s financial difficulties, and says it plans to reopen the site for tender in round 3.4.

• The Energy Administration has stated that the withdrawal of EDF will not affect its offshore wind installation targets.

Solar

• Solar industry association TPISA has put forward four directions for development to help meet the semiconductor industry’s growing demand for green energy while overcoming societal resistance to the technology:

  • Aquavoltaics

  • Agrivoltaics

  • Development in low-yield areas

  • Social welfare solar that shares profits with local communities

Semiconductors

• Despite the global price increases caused by the Iran crisis, Taiwan’s semiconductor industry continued to operate at full capacity, and electricity consumption in the sector continued to grow. Taiwan Research Institute’s Energy Performance Index for March shows the power sector continues to perform robustly, with nationwide electricity consumption by high-voltage industrial users growing by 1.76% year-on-year. The share of green electricity used by industry also continued to rise.

• TSMC should commit to developing regional renewable energy, argue environmental groups concerned that the company’s plan to build five 2-nanometer wafer plants a the Nanzih Park in Kaohsiung could “exhaust the electricity grid” and lead to the expansion of gas-fired generation at the Hsinta power plant. The plants’ electricity consumption would be equivalent to that of Kaohsiung residential consumers.

Grid resilience

• 23 research projects on grid resilience have been published as part of a joint project between Sun Yat-sen University and Taiwan Power Company.

Hydrogen

• SINBON Electronics and Nexcellent Energy have signed a cooperation agreement to implement hydrogen energy.

Hydropower

• A new illustrated book and exhibition highlights the role hydropower has played in Taiwan’s development

Coal power

• A test of the Hsinta power plant No.4 coal-fired unit, which is maintained on standby as an emergency back-up unit, has been questioned by KMT legislators who are concerned the testing is a preparatory step towards restarting the unit for regular power generation. Taiwan Power Company denied this claim.

Climate

• Taiwan launched its new climate adaptation plan for 2027 to 2030 on Earth Day, which aims to prepare for more severe warming scenarios through:

  • A heat adaptation alliance

  • Drills simulating an extreme heat scenario (three consecutive days of 38°C)

  • Using big data to identify heat-vulnerable hot spots and guide resource allocation

  • Smart warning system for elderly people living alone

  • Urban afforestation to create “cool cities”

  • Establishing the National Climate Change Adaptation Resilience Center

• NT$4.5 billion (US$142.8 million) is expected to be collected from major emitters who will pay carbon fees for the first time next month. 224 facilities (representing ~76% of total emissions) have qualified for an 80% discount due to high risk of carbon leakage (where a company moves their production from a country with stringent climate policies to a country with weaker regulations to avoid costs).

• An industrial federation has opposed amendments to the Air Pollution Control Act, which would allow local governments to require operators to reduce total emissions and to ban or restrict the use of coal. The federation argues that this could lead to restrictions on power plants and factories that could force them to close.

• At the 2026 NGO Environmental Conference, President Lai proposed four major directions for environmental policy: “strengthening national land planning and resource governance”, “steadily promoting energy transition”, “protecting the ecological environment and the value of life”, and “expanding public-private cooperation to promote environmental protection actions.”

• Various promotions have been made at the Ministry for Environment, including a new Director of the National Environmental Research Academy.

• Vice President Hsiao Bi-khim said Taiwan is a reliable partner for sustainability, and will play an important role in driving a global digital and net zero dual transformation, speaking at a sustainability design summit. Vice President Hsiao also said that the government will continue to work hand in hand with the private sector to strengthen overall social resilience in the face of climate change, speaking at a “critical infrastructure security” themed security tech expo.

• 16 new railway stations with lower embodied and operational carbon emissions will be built over the next decade, with the first one set to be a new underground station in Tainan.

• Legislators have called on the Ministry of Agriculture to develop an insurance system for climate-related losses, such as pest infestations, diseases or abnormal wildlife behaviours caused by extreme weather conditions such as heavy rainfall or drastic temperature changes.

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LNG: supplies are secure, but costs are steep

LNG shipments for April and May have been secured, with 11 of the 15 vessels required for June also in place. Four additional oil shipments have also been secured, with the first expected to arrive in early May. As such, energy supplies are expected to remain stable through May, with the Energy Administration reiterating that LNG supply is secure and reports of a shortage crisis are completely unfounded.

However, each additional LNG cargo costs NT$1 billion to NT$1.4 billion more than usual. Electricity generation costs could rise between 10-20% by the end of this year if the Strait of Hormuz crisis is not resolved.

To mitigate these rising costs, a proposal for a NT$170 billion capital injection into CPC (Taiwan’s state run oil and gas company) for next year has been sent to the Executive Yuan for review. CPC has accumulated losses of nearly NT$79.2 billion since 2020, with the Ministry of Executive affairs laying out three ways it plans to assist: project financing, budget allocations, and capital increases.

CPC has also announced a 41.58% increase (the largest on record) in natural gas prices for domestic power generators this month, which is expected to increase Taiwan Power Company’s (TPC) monthly generation costs by about NT$10 billion.

Coal: restart planned for May

To ensure electricity supply security, two coal-fired generators that ceased operating last year will be restarted in May. The two 500 MW generators located in Mailiao, Yunlin, will run until July. Generation at the Taichung coal-fired units will be reduced at the same time.

“As the development of Middle East war remains unclear, Taipower decided to follow the step of neighboring nations to expand coal-fired power in the short term in a bid to help CPC Corp, Taiwan (台灣中油) strengthen its flexibility of LNG supply” - Taiwan Power Company

The government has pledged that this measure will not lead to increased coal consumption this year, but environmental groups have criticised the restart, citing concerns that coal consumption reduction targets won’t be met and air pollution will worsen. Yunlin Country government has said that restarting coal-fired units will only be approved if environmental and health regulations are met.

The KMT (Taiwan’s major opposition party) has said this coal-power restart exposes the complete failure of the government’s energy policy, with the Mayor of Taichung also criticising the decision as “flawed.”

An inflection point?

Discussions about how Taiwan should respond to the ongoing crisis continue:

• Taiwan is open to joining a global LNG strategic reserve program if one is created, but only if countries will ensure deliveries in the event of a conflict with China.

• Pegatron’s chairman has called for Taiwan to reduce its reliance on fossil fuels by 20% by 2030 and use LNG as a supplementary energy source rather than the primary one.

• Environmental groups have called for the immediate launch of a nationwide energy saving campaign (as already implemented in many countries in Southeast Asia), arguing that over reliance on fossil fuel subsidies to cope with the crisis will lead to counterproductive results, such as crowding out other public spending.

• Taiwan needs an energy strategy shift and should diversify its energy mix by using bioethanol and nuclear, argues the president of the US-Taiwan Business Council.

Other impacts: plastic bags and carbon fee concerns

The other major impact of disruptions to oil supply chains is the continuing plastic bag crisis, which seems to be generating much more public concern in Taiwan than the potential impact on energy prices. To mitigate the shortage CPC and Formosa Plastic have secured additional shipments of crude oil and naphtha, and CPC has activated its No.4 naphtha cracker.

Some firms hit by rising costs driven by the crisis have raised concerns about their ability to pay the carbon fee by the deadline in May. The government is considering case-by-case payment deferral or instalment options, but stress that the fees remain mandatory and must be paid.

In other news…

Energy

• In light of current energy crisis, Taiwan News provides a useful overview of current developments and challenges across different energy sources in Taiwan here.

Policy

• New targets for renewable energy have been set, focusing on the metric of installed capacity (instead of just percentage of the energy mix) as a more pragmatic indicator of green energy progress. The 2030 geothermal target has been reduced from 1.2 GW to 200MW “for the sake of pragmatism.”

• Almost 41% of Taiwan’s Grid Resilience Strengthening Construction Plan has been completed.

• Taitung county (located in the east of Taiwan) aims to generate 60% of its electricity locally - primarily from hydropower and geothermal - by 2030, and is also developing a local microgrid to boost local resilience.

Resilience

• The government will soon carry out cross-departmental drills to practice escorting ships carrying natural gas and oil during a Chinese naval energy blockade.

“If the Taiwan Strait or the surrounding area of Taiwan will be blockaded, it is almost a 100 percent of the blockade of the regional energy supply. It’s not only Taiwan’s problem; it’s the whole area’s problem.” - Deputy Minister of the Interior Sawyer Mars

• Energy resilience experts believe that in a blockade scenario, Taiwan’s energy reserves would last much longer than 14 days (a number often cited in foreign media) - however, Taiwan should still develop long term resilience measures including:

  • coordinating fuel imports with friendly countries;

  • expanding on-site distributed energy systems and storage for the semiconductor industry;

  • developing local level microgrids.

• The government should use the current energy challenge as an opportunity to strengthen information resilience to prevent disinformation, misinformation, conspiracy theories, and rumours from undermining the energy transition and energy resilience, argues this op-ed.

Nuclear

• A local briefing on the proposed restart of the No.3 nuclear power plant will be held in Pingtung on April 28. The nuclear safety council has already started to review the restart plans.

• A NT$1 billion four year research project into small modular reactors (SMR) has been proposed by the National Atomic Research Institute (NARI). The institute said Taiwan could generate its first SMR electricity as soon as 2035, with the technology potentially able to cut high-level nuclear waste by more than 70%.

• SMRs are not a practical solution for Taiwan’s current energy challenges, but could play a role in the future energy mix, as long as planning starts early, according to a Taiwanese nuclear energy expert.

Wind

• Draft administrative contract terms have been released for the R3.3 offshore wind auction, introducing a three-party agreement structure, ESG and energy resilience obligations, and a fixed NT$2.29/kWh floor price.

• Foxwell Power, a subsidiary of Shinfox Energy, has secured approval from TPC for an additional NT$5.56 billion payment for an offshore wind project, compensating for cost overruns driven by inflation and interest rate hikes linked to the Russia–Ukraine war.

• A proposed upgrade to the aging Dapeng onshore wind farm in Miaoli that would replace 16 of 21 turbines with higher-capacity models has passed an initial environmental review, but regulators recommend the removal of four turbines and stricter ecological safeguards.

Solar

• The cost of installing rooftop solar on large new buildings - as will be mandatory from August - would only be about 0.3% of the building cost, with the money expected to be recouped in around 12 years, according to the Ministry of the Interior.

Geothermal

• Why has less than 13 MW of geothermal been developed in Taiwan, despite a 200 MW goal being set all the way back in 2016? Regulatory bottlenecks, financing challenges, and the lack of specialist equipment and crews are the main obstacles. Potential solutions include clearer permitting processes, government risk-sharing mechanisms and financial instruments tailored to long development timelines.

Biodiesel

• A backpack-sized machine which can convert cooking oil into biodiesel has been developed by Taiwanese researchers. The technology could be used for emergency community power generation, to produce biodiesel to power a generator.

Hydropower

• TPC is at an impasse with the Feitsui Reservoir authority regarding water consumption compensation fees, with Feitsui Reservoir no longer supporting emergency power dispatch and planning to transition to independent green energy sales.

Climate

• A national plan for urban forests that will create shade for commuters travelling from MRT stations to offices will be launched by the end of the year.

• Climate disasters are already impacting Taiwanese farmers - but agricultural insurance programs have failed to live up to expectations.

• Industries that will be affected by CBAM, the EU’s carbon border adjustment mechanism (around 2,600 businesses primarily the steel industry) can access support via a new online platform set up by the Ministry of Environment.

• Taiwan’s illegal construction waste dumping poses a major problem to its net zero goal, argues this column, which calls for massive reforms of the construction industry.

• The ChangeNOW sustainability summit in Paris features a Taiwan pavilion for the first time, showcasing ocean protection initiatives.

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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

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President Lai announced that restart plans for both the No. 2 Guosheng Nuclear Power Plant (New Taipei) and the No.3 Maanshan Nuclear Power Plant (Pingtung) will be submitted by the end of the month.

If the plans are approved, this would effectively reverse his party’s long-standing policy to abolish nuclear energy, less than a year after Taiwan became a “nuclear-free homeland.”

If Taiwan Power Company (TPC, the state-owned energy company) procures new fuel rods by the end of this year, No.3 Maanshan could be up and running by 2028. No. 2 Guosheng could be online as early as 2029, although used fuel rods still need to be removed before safety inspections can proceed.

The plants will have to meet three conditions if they are to be restarted: safety, a solution to manage nuclear waste, and social consensus.

The government has emphasised that Taiwan’s electricity supply is secure until 2032 even without restarting nuclear energy.

Lai justified the decision by saying nuclear power could be an option to meet the expected AI-driven increase in power demand, but the timing is interesting. Disruptions in the Gulf have led to domestic and international concerns that Taiwan is facing an “energy crisis” due to its reliance on imported fuels (despite the government’s best efforts to reassure people this is not the case) and criticism that the DPP’s energy policies have failed to deliver energy security.

Nuclear energy also seems to have gained more popularity - or at least is less politically toxic - as demonstrated by the results of a referendum last year where pro-restart voters outnumbered opposition voters almost 3:1 (although the turnout threshold was not reached).

All this comes ahead of the November local elections, which are widely seen as a test of Lai’s popularity.

Reactions

Taiwan’s opposition parties have welcomed the decision but called on Lai to apologise to the public for his party’s anti-nuclear “dogma” which they say has undermined Taiwan’s energy security.

“Precious time was wasted, national security was sacrificed, industries were gambled with, and in the end, everyone lost,” - TPP spokeswoman Chang Tung

The KMT (Taiwan’s major opposition party) has called for an emergency order to be issued to immediately restart the No. 3 plant.

Ko Wen-je, the founding chairman of the TPP (Taiwan’s second opposition party) has said there should be no problem with restarting the No.3 nuclear power plant, but that the risks and benefits must be fully explained to the public.

Anti-nuclear groups have criticised the decision to consider restarting the plants, highlighting the safety risks of nuclear power and the unresolved question of how to manage nuclear waste as key reasons for their opposition to the proposed restart.

“How, then, can nuclear power be restarted without addressing this? Doing so would pass the problem to the next generation, disregarding Taiwan’s future and environmental justice,” - Homemakers’ Union and Foundation Taichung branch director Geng Ming-yi

Pingtung locals have called for comprehensive safety measures before any restart of the No.3 power plant, which began operating in 1984.

Legislators have called for the review process for the plants to be clearly explained to the public, and discussed the details of restarting the No.2 plant, with potential issues including the removal of spent fuel rods, and the timeline of replacing old equipment.

Following his nuclear announcement on Saturday, Lai has re-affirmed his commitment to green energy, saying that reviewing the possibility of restarting nuclear power plants can be carried out in tandem with renewable energy development. He also reiterated that the government will continue to consider advanced nuclear technologies, including fusion and SMRs.

Great Powers: Two Offers of Energy Security…

“The mainland is ready to provide Taiwan compatriots with stable and reliable energy supplies once peaceful reunification is achieved” - Chen Binhua, spokesperson for China’s Taiwan Affairs Office

Peaceful unification with China could help protect Taiwan’s energy and resource security with China offering energy stability, said a representative of China’s Taiwan Affairs Office in answer to a question about Taiwan’s oil and gas supplies following the Gulf crisis.

Unsurprisingly, the Taiwanese government resoundingly rejected the “offer” with the Deputy Minister of Economic Affairs identifying the ploy as part of China’s cognitive warfare strategy.

Turning to the other great (?) power, the US: as CommonWealth Magazine observes, the very country that launched the conflict now threatening Taiwan’s energy supply, stands to become the biggest winner of its energy security pivot with recent LNG deals putting the US on track to become Taiwan’s top energy supplier.

With Trump calling for US allies to send ships to secure the Strait of Hormuz, Taiwan’s defence minister has said the military has not considered sending troops to assist, and will continue to prioritise the security of the Taiwan Strait.

Price Volatility Still No. 1 Concern

While Taiwan’s short-term supply of LNG remains secure, price volatility remains the major concern - especially if CPC (Taiwan’s state owned oil supplier) turns to the spot market to make up for any shortfall in shipments.

So far, CPC has absorbed NTD 3.3 billion in fuel costs since the outbreak of tensions in the Middle East in an attempt to stabilise prices for consumers. Tax cuts for fuel have also been expanded to 50%.

Three approaches (special project financing, special budget allocations, and capital increases) have been proposed to help stabilise CPC’s financial situation.

The Electricity Price Review Committee will meet on March 27, but as CPC will not announce gas prices until the 31st, electricity prices are expected to remain unchanged in April.

When the chips are down?

Bloomberg warns that the war in the Middle East threatens Taiwanese semiconductor manufacturing by “potentially choking off key supplies and spiking the cost of power in Taiwan.”

However, industry association SEMI said they are not seriously worried about the short-term supply of helium (a byproduct of natural gas processing and critical for semiconductor manufacturing) as long as the Iran war is resolved within six weeks.

“The Middle East conflicts may be regarded as a black swan event for petrochemical producers, but not for semiconductor producers” - SEMI analyst Clark Tseng

In other news…

Energy

Energy Transition

• Taiwan’s power generation in 2025 consisted of:

  • 47.8% natural gas

  • 35.4% coal

  • 13.1% renewable energy, coming from:

    • 15.5GW of solar

    • 3.6GW of offshore wind

    • 7MW of geothermal

Renewables are still lagging far behind the 2025 energy transition target of 20% (alongside targets of 50% for natural gas and 30% for coal) with the Minister of Economic Affairs recently saying the 20% target will likely remain unmet even by the end of 2026.

• An op-ed in the Taipei Times argues that dismissing renewable energy as infeasible for Taiwan based on its slower than anticipated rollout is an oversimplification, as “energy transition is not a short-term undertaking, but a long-term restructuring.”

Wind

• The first turbine of the Hailong No. 3 wind turbine has been successfully installed, with 9 local partners involved in manufacturing the nacelle. The project is expected to be fully commercially operational in 2027.

Solar

• Aquavoltaics (the integration of solar panels and aquaculture) remains a priority, said the Agriculture Minister, responding to opposition concerns that developing aquaculture would be de-prioritised in favour of electricity generation.

• Results from Taiwan’s first “printed” Building-Integrated Photovoltaics (BIPV) demonstration project show “printed” BIPV systems generate around 50% of the power of rooftop solar.

• A fire broke out at a solar panel module storage area in Pingtung - no one was hurt, and there has been no significant pollution as a result. However, media coverage initially reported that the fire broke out at a solar farm, potentially contributing to disinformation narratives which suggest solar panels are easily combustible and thus dangerous.

Gas

• Expanding underground gas storage could offer part of the solution to Taiwan’s energy vulnerability, argues an op-ed in ASPI’s The Strategist.

Storage

• Taiwan’s Ministry of Economic Affairs announced subsidies of NT$5 million per MWh to promote industrial behind-the-meter energy storage using domestically produced lithium batteries, alongside new safety standards and a national testing center.

Climate

• AI will help cities reduce carbon emissions and boost resilience, said Taiwan’s National Development Minister at the Net Zero Cities Exhibition currently underway in Taipei. Also speaking at the conference, the Minister of Economic Affairs called for AI development to go hand in hand with energy conservation and emissions reductions, with Taiwan working on improving grid resilience and diversifying sources of renewable energy.

• A new material that uses sunlight to convert CO2 into fuels such as methane has been developed by researchers from National Sun Yat-sen University.

• Hsinchu City has launched a NT$1 million subsidy program to encourage neighbourhoods and communities to invest in low-carbon measures like community gardens, energy efficiency measures, and green roofs.

• Taiwan Carbon Solution Exchange has signed an MOU on exchanges in climate finance with the Central American Bank for Economic Integration.

• Mandarin Airlines flew its new ATR 72-600 plane from France to Taipei using 30% Sustainable Aviation Fuel (SAF).

• A visitor center in Shei-Pa National Park, Miaoli, has become the first government building to receive a carbon footprint certification.

• To strengthen the ability of chinese chives (韭菜）to adapt to climate change, a new microbial preparation method has been developed by agricultural researchers in Taichung.

Taiwan’s electricity and fuel prices will remain frozen, despite soaring oil and gas costs caused by the Middle East crisis and the de-facto closure of the Strait of Hormuz.

Taiwan’s state-owned energy companies, Taiwan Power Company (TPC) and CPC (Taiwan’s main buyer of petrochemicals) will absorb much of the increased costs to stabilise consumer prices, as the government continues to prioritise price stability.

TPC will absorb the risk of rising fuel costs until the electricity price review committee’s decision on electricity rates is released in the second half of the year.

CPC is set to absorb at least 60% of oil price increases to stabilise consumer prices. A dual price-smoothing mechanism has been introduced to minimum increases in gasoline and diesel prices, with additional subsidies provided for the agricultural and fishing sectors.

The Minister of Economic Affairs reassured the public that Taiwan is not facing an imminent power shortage, calling speculation around a natural gas shortage “simply rumours.”

Taiwan’s oil reserves remain well above the legal 90-day requirement with 30 days held by the government and 60 by private companies, giving authorities flexibility to adjust supply if needed.

Oil supply sources are diversified across multiple countries (excluding Russia) allowing for supplies to be rerouted from other regions if disruptions occur to shipments transiting the Strait of Hormuz.

Gas supply will be stable through April, with transportation for 20 of the 22 LNG cargoes needed for the next two months already secured from spot markets, including from Australia, the US, and other Asian and African countries.

Premier Cho Jung-tai has directed the Ministry of Economic Affairs to secure natural gas supplies for May and increase imports from the United States in June.

TPC has also prepared further contingency plans, including demand-side management measures.

Private energy company Formosa Petrochemical, which usually exports 45%-50% of its oil products, has said that it is no longer accepting spot orders and is focusing on domestic oil product demand. Given that 80% of its crude oil usually comes from the Middle East, the company is working to find alternative crude suppliers, with some already secured from West Africa and Southeast Asia identified as a source of future supplies.

Energy Crisis Rumours

Pro-KMT1 and pro-China voices have used Middle East crisis to criticise the ruling DPP party’s energy governance strategy and advocate for a return to nuclear energy.

Rumours that Taiwan is facing an energy crisis and is about to run out of gas continue to circulate on social media, including on TikTok. These rumours share similarities with an ongoing narrative in the Chinese media that Taiwan is facing an energy crisis due to the DPP’s policy mismanagement.

The government’s statement that coal-fired generation could be used as a last resort has led to criticism that its “flawed” energy policies risk sacrificing public health through air pollution, whereas restarting nuclear power would provide a “cleaner” alternative to coal.

Taiwan’s plans to expand its imports of natural gas from the US has furthered criticism that the US is engaging in “energy profiteering,” a narrative which gained traction during recent tariff negotiations.

The Ministry of Economic Affairs released a statement condemning the false rumours, reiterating that Taiwan’s LNG supply has been secured for the next two months:

“There is absolutely no issue of power shortages as rumoured by outsiders.” - Ministry of Economic Affairs

Other experts have also indicated that a supply shortage is unlikely:

“The immediate challenge for Taiwan is therefore rising fuel prices, rather than a physical supply shortage,” - Tsaiying Lu, Energy Security Director at DSET, speaking to Nikkei Asia.

Deterring a Taiwan Strait Crisis

The “trade squeeze” caused by disruptions in the Strait of Hormuz has renewed international warnings about the need to avoid a similar crisis in the Taiwan Strait, given its importance to global trade.

In the Times, Former British Prime Minister Rishi Sunak writes that “deterring any conflict in the Taiwan Strait is essential” as the volume of trade transiting the Taiwan Strait means any conflict could lead to an even bigger supply shock than the world is currently facing.

British security think tank RUSI makes a similar argument, with the Gulf conflict offering a warning about the effects of a Taiwan Straits crisis on global trade:

“Pretending that a Taiwan crisis would be anyone’s ‘internal matter’ is as absurd and irresponsible as claiming the current Gulf conflict is of concern to the direct belligerents alone. Only by thinking through the likely effects on economic security for the region and the wider world can the scale of the problem be appreciated, and proportionate measures put in place to prevent it, to deter it from happening, or to mitigate its effects. China has no right to shut down discussion on a question of international economic security.”

Energy Diversification

A Taipei Times editorial reacting to the crisis calls for Taiwan to “enhance its energy resilience by diversifying its sources to avoid surges in imported fuel costs as inflation fears grow” and for the government “to beef up its energy transformation efforts and support renewable energy supply domestically.”

Canadian experts believe the global energy crisis presents a new opportunity for Taiwan to invest in Canadian LNG production to boost its energy security:

“In 2024, CPC Corporation acquired a 5% stake in Qatar’s North Field East expansion project in exchange for a long-term natural gas supply contract. Taiwan can adopt the same strategy, investing in LNG projects in Canada in exchange for long-term gas supply contracts. The difference is that transport ships departing from Canada can directly cross the North Pacific route to Taiwan, making the geopolitical risks far lower than in Qatar.”

Meanwhile, Alaska Governor Mike Dunleavy has responded to the global energy turmoil by promoting the proposed Alaska LNG project as “ensuring energy security for Japan, South Korea, Taiwan and the entire region” in a Wall Street Journal op-ed. (I previously analysed the project, its challenges, and what it represents for the Taiwan-US energy relationship, with a colleague in The Diplomat).

In other news…

Energy

Energy Security

• The Taiwan Energy Security and Anti-Embargo Act of 2026 has been introduced to the US House of Representatives by Republican Representative Pat Harrigan. The Senate version of the bill passed the Foreign Relations Committee in January.

  “Energy is leverage. Beijing knows exactly where Taiwan is weakest — and global events today, from strikes in the Middle East to threats at chokepoints like the Strait of Hormuz, underscore that energy vulnerability is national security vulnerability.” - US Representative Pat Harrigan.

• According to Representative Harrigan’s official statement, the bill’s key elements include:

  • U.S. LNG and export leadership: The bill prioritizes U.S. liquefied natural gas exports to Taiwan and incentivizes projects that diversify and secure supply sources—a stepping stone to reducing energy leverage by hostile powers.

  • Next-generation nuclear cooperation: Encourages bilateral efforts on advanced nuclear technologies, including small modular reactors, to provide reliable baseload power less susceptible to external disruption.

  • Energy infrastructure resilience: Enhances cooperation on protecting Taiwan’s critical energy grids and storage systems from cyber, physical, and asymmetric threats.

  • Maritime insurance authority: Expands U.S. Maritime Administration powers to insure vessels transporting critical energy and vital goods to Taiwan when commercial markets withdraw due to foreign military threats.

  • Strategic assessment: Mandates an independent analysis of how to redirect U.S. energy exports toward Taiwan and strengthen long-term energy partnerships.

• As TSMC could account for 15% of Taiwan’s electricity consumption by 2030, experts argue that energy security is not just about securing fuel supplies, but also how Taiwan’s electricity system will meet increasing industrial power demand.

• A proposed microgrid project between National Central University and TPC will allow campus labs to maintain operations during grid disruptions, with the microgrid able to switch to “island mode.”

Gas-Fired Generation

• Environmental groups are questioning TPC’s plans to extend the life of five existing gas-fired units at the Hsinta Power Plant in Kaohsiung to 2037. Originally, the units were scheduled to be decommissioned by 2027 as part of plans to build two new gas-fired units at the plant. The two new units are set to come online starting in 2032.

• Local residents staged a protest against the expansion of the plant at an Environmental Impact Assessment briefing for the project. Protestors attempting to deliver a petition briefly clashed with police.

• Responding to the criticisms, TPC released a statement emphasising that the Hsinta plant has reduced air pollution by 92% over the past 10 years, and that the new units will ensure a stable power supply for industrial development in the region.

Nuclear

• Plans to restart the decommissioned No.3 Ma-anshan nuclear plant will be submitted this month, meaning the plant could begin generating electricity as early as 2028, representing a U-turn on the government’s “nuclear free homeland” policy.

• These restart plans should be scrapped for safety reasons, said anti-nuclear experts and groups on the 15th anniversary of Japan’s Fukushima disaster. Japanese nuclear engineer Masashi Goto visited Taiwan to address nuclear disaster risks from an engineering perspective as part of the commemorative events.

  “Convenient, safe and waste-free nuclear energy an illusion,” - Gloria Hsu, a retired professor of atmospheric sciences at National Taiwan University

Wind

• Shinfox Energy said it expects an almost NT$16 billion loss in its 2025 financial statements after recognizing potential additional costs stemming from a contract dispute between subsidiary Foxwell Energy and subcontractors on Taiwan Power Company’s Offshore Wind Phase 2 project, as mediation over additional payments remains unresolved.

Climate

• Discussions on a draft bill for carbon capture, utilization and storage (CCUS) raised concerns that the proposed regulations will limit the economic viability of the technology. Industry representatives said that Taiwan’s carbon fee is currently too low to incentivise investments into CCUS, and the current ban on foreign carbon sources being stored in Taiwanese CCUS projects further limits the industry’s potential.

“If you set the carbon fee at NT$300 or NT$100, I’ll just give you the money directly. Why bother with carbon capture and sequestration?” - an energy industry representative

• Taiwan’s first online course on climate change for high school students has been launched.

• The Ministry of Economic Affairs has released “SME Carbon Reduction Guidelines” which set out how SMEs can work towards a net zero transformation. In 2025, over 13,000 SMEs completed carbon health checks and engaged in net zero transformation consultations.

• Taiwan’s blue carbon methodology for seagrass restoration was established last year, but a verification system must be developed in order for seagrass projects to be used for carbon trading.

• ITRI and the Water Resources Agency won a global Smart 20 award for the “Precision Carbon Governance: Scaling AI-Driven Real-Time Monitoring for Public Infrastructure“ project which uses AI for real-time monitoring of carbon emissions during the construction of water conservation projects.

• Following reports that China’s greenhouse gas emissions may be plateauing, international coverage has largely overlooked Taiwan’s climate progress despite the fact that Taiwan’s carbon intensity (CO₂e per unit of economic activity) is lower than China’s.

• Taiwan and St. Kitts and Nevis (a diplomatic ally) will establish a technical working group to plan cooperation on renewable energy and carbon credits, with plans to present results of the cooperation at COP31.

• Taichung City Government held a green economy forum to discuss strategies for the net-zero transition and climate governance.

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What do US-Israeli strikes on Iran, and Iran’s retaliatory closure of the Strait of Hormuz mean for Taiwan’s energy security?

Middle East Energy Imports

Last year, Taiwan secured 34.9% of its total oil imports from the Middle East (Saudi Arabia and Kuwait in particular) and around 30% of its LNG from Qatar. In a typical month, Taiwan receives about 30 natural gas shipments, around 10 of which come from the Middle East.

The conflict, which started last Saturday, has effectively halted oil and gas exports through the Strait of Hormuz, with Iran threatening to attack any vessels attempting to transit the Strait. At least 9 vessels have already been attacked by Iran’s Revolutionary Guards. A very limited number of non-Iranian vessels, mainly Greek-owned, have continued to pass through the Strait.

Qatar’s state-run energy firm suspended LNG production after an Iranian drone attack, and it may take at least a month to return to normal production volumes.

Taiwan’s Energy Supply Secure (for now)

Taiwan has secured sufficient natural gas supplies for March, with Minister of Economic Affairs Kung Ming-hsin reassuring the country that “there will absolutely be no power rationing due to insufficient natural gas.”

Gas supplies for early March have already passed through the Strait of Hormuz, and supplies for the second half of the month have been secured for alternative markets. Crude oil shipments also remain uninterrupted.

Crude oil reserves are sufficient for more than 100 days, and natural gas reserves for more than 11 days, both above the minimum safety requirement.

The Ministry of Economic Affairs has activated an interdepartmental emergency response team including state owned energy companies CPC and Taiwan Power Company (TPC), which is convening daily meetings to monitor and respond to the situation as it evolves.

If natural gas supply scheduling faces difficulties beyond March “activating backup coal-fired generating units will be a last resort,” Minister Kung said on Thursday. Whether or not TPC should increase coal generation will be assessed in April.

A new three-stage plan outlines how CPC will ensure fuel supplies in “extreme conditions”:

1. Redirect cargoes from non-Middle Eastern sources (e.g. US and Australia)

2. Seek supply swaps with Asian buyers (e.g. Japan and Korea)

3. Procure additional spot cargoes if necessary

Other Asian countries are taking similar measures, sourcing fuel from other regions, asking suppliers to bring next month’s shipments forward, and relying on stockpiles - including significant crude oil stockpiles in Japan.

US President Trump has said the US navy could begin escorting oil tankers through the Strait if necessary, and has approved a $20 billion maritime reinsurance plan to be implemented by the US International Development Finance Corporation (DFC). The shipping industry remains sceptical about these announcements.

Domestic Impacts

Gasoline and diesel prices rose by NT$0.2 and NT$0.4 per litre respectively (representing a 5% price increase) and the price of natural gas is expected to rise by 3% on average in March. The government has said it is prioritising domestic price stability in its responses to the crisis, and it expects electricity prices to remain stable for now.

Taiwan’s benchmark index has also felt the impact of the conflict, with the third-largest single-day point drop in history seen on Wednesday. TSMC stocks fell 3.62%.

What does the Strait of Hormuz crisis mean for Taiwan’s future energy policy?

The evolution of the current conflict - how markets react to a disrupted energy supply, how maritime insurance rates respond, if the US navy actually starts escorting ships - will offer valuable maritime security lessons as Taiwan and its partners prepare for a potential similar situation in the Taiwan Strait.

Iran’s successful blocking of the Strait of Hormuz may lead to the US and China paying more attention to the importance of strategic control and military presence in the Straits of Taiwan and Malacca.

The crisis also underlines the importance of diversification, not only of fuel suppliers but also of energy sources. While the government appears confident Taiwan’s energy system can weather this current storm, the US-Iran conflict provides yet another example of the risks of fossil fuel dependency.

Taiwan has already diversified its suppliers of LNG and oil, now sourcing from more than 10 countries. In February, CPC announced its plans to significantly increase purchases of American LNG from 10% to 30% by the end of 2026. Since then, CPC has signed a long-term agreement with Cheniere to purchase up to 1.2 million tonnes per annum of LNG from 2026 to 2050.

Taiwanese environmental groups have pointed to the current crisis situation as underlining the importance of accelerating Taiwan’s renewable energy development for energy security.

Wind power, solar power, hydropower and geothermal energy are local resources that do not need to rely on ocean transportation and will not be interrupted by war, blockade or trade sanctions. Whether it is a conflict in the Taiwan Strait or supply disruptions in the Middle East, renewable energy can effectively reduce Taiwan’s dependence on external energy.

The Renewable Energy Business Association has suggested that TPC could increase the dispatch ratio of its energy storage systems to reduce natural gas consumption and preserve LNG reserves.

While not directly related to energy security, there has also been much discussion in Taiwan about what the US war with Iran means for US-China-Taiwan dynamics, with Chinese military flights near Taiwan resuming yesterday after an unusual weeklong pause.

In other news…

Energy

Taiwan Power Company

• Taiwan Power Company (TPC) projects that electricity demand will grow much faster over the next decade, with the average annual increase expected to be more than double that of the previous ten years. As the semiconductor and AI industries expand, with power demand for semiconductor manufacturing exceeding 5 GW by 2030. To meet the increasing demand, TPC is expanding units at key thermal power plants and upgrading the power grid. TPC’s focus issues for 2026 are:

  • Future electricity demand growth trends

  • Power infrastructure development and strengthening

  • Urban distribution of the semiconductor industry: as cities and regions work to attract investments in semiconductor factories and AI data centres, urban planning should include power source development.

• Plans to extend the service life of existing gas-fired units and add two new units at the Hsinta Power Plant in Kaohsiung will not lead to increased air pollution, says TPC.

• TPC mobilised over 4,000 people in an initiative to reduce power outages caused by wildlife, by clearing birds nests from power lines, pruning trees, installing bird deterrents and snake/rat nets.

Nuclear

• Premier Cho Jung-tai said that Taiwan should fully engage in discussions about advanced nuclear technologies such as fusion and that the government will fully embrace advanced new nuclear energy technologies from around the world to give industries greater peace of mind. Taiwan achieved the DPP government’s “nuclear free homeland” goal last year, in what Cho called the “era of traditional nuclear energy,” with the “new era” now requiring a more open energy policy.

• The restart plan for the No. 3 Nuclear Power Plant has been preliminarily completed, and TPC will submit it to the Nuclear Safety Council by the end of March.

Wind

• The first underwater foundation pile has been installed at CIP’s Fengmiao Offshore Wind Farm in Taichung by CDWE’s domestically built installation vessel. The 500 MW project scheduled for completion next year, with power generated by the project’s 33 wind turbines to be sold to semiconductor companies and telecom operators.

• The chairman of Century Wind Power, a manufacturer of underwater foundations, called offshore wind power absolutely indispensable to Taiwan’s need for its own energy sources. Century Wind Power is expected to be listed on the stock exchange in late March.

• Plans to install 8 onshore wind turbines (~40MW in total) in Fangshan, Pingtung have stalled. The second review found the EIA lacked sufficient ecological data, including on how the project would impact birds of prey migrating through the area.

LNG

• Environmental groups will file a lawsuit challenging the approval of a new LNG receiving terminal to be constructed in Keelung, north-east Taiwan. The LNG terminal would be the fourth in Taiwan and is part of a power plant upgrade project to replace four oil-fired units with two gas-fired ones with a combined capacity of 2.6 GW. Environmental activists argue that the energy transition has become an excuse for aggressive development, the proposed land reclamation for the terminal would damage marine ecology, and the accepted EIA contains multiple errors.

International

• The 7th UK-Taiwan Energy Dialogue, held in London this week, marks 20 years of renewable energy cooperation. Discussions covered offshore wind policy, project finance and bankability, and marine spatial planning. A Memorandum of Understanding on technical collaboration was signed between Taiwan’s Metal Industries Research & Development Centre and the UK’s Offshore Renewable Energy Catapult.

• KMT Chair Cheng Li-Wun references how any disruption in the Taiwan Strait would compromise energy security in her Foreign Affairs Op-ed “Taiwan Doesn’t Have to Choose.”

Storage

• Taiwan Cement’s energy storage management system has received international cybersecurity certification, which will help the company export the “Taiwan-developed” energy storage technology to Europe.

Solar

• The politicisation of solar power by opposition parties reflects broader partisanship in Taiwanese politics, writes New Bloom Magazine.

Climate

Carbon Pricing

• Information on approved voluntary emissions reduction plans for 273 factories has been released on the carbon fee management platform.

• Reflecting on Taiwan’s climate pricing journey, Environment Minister Peng Chi-Ming shared that industry’s voluntary efforts are expected to deliver 47.45 million tons of emissions reductions, and highlighted the platform as a testament to Taiwan’s information transparency. Taiwan Climate Action Network Director Chia-Wei Chao said the level of detail could be improved, with companies needing further encouragement to overcome their hesitations about disclosure.

• The Ministry of Environment will soon set up an online platform to help SMEs adapt to CBAM, the EU’s carbon border adjustment mechanism. Manufacturers of steel products (screws, fasteners, stainless steel or carbon steel) will be among the most affected by CBAM.

• On his recent visit to Brussels, Environment Minister Peng Chi-Ming discussed CBAM related issues with European officials, including:

  • Suggesting the EU clarify the CBAM calculation method and supporting documentation requirements

  • Certification mechanism for non-European inspection bodies

  • Strengthen discussions on technical details of CBAM implementation

Extreme Weather

• Describing expected typhoons as “the strongest in history” or in other exaggerated terms could see media organisations fined up to NTD 500,000 under proposed amendments to the Meteorological Act, which would also expand the definition of weather disasters to include tropical depressions and high temperatures.

• Taiwan hopes to train 100,000 disaster prevention personnel this year, bringing the total number to 200,000. The training course enhances participants’ knowledge and ability to respond to earthquakes, typhoons and other disasters. It aims to build a community-based disaster prevention network as climate change makes disasters more frequent.

Mitigation

• Semiconductor manufacturers UMC and Infineon have signed a MoU to promote carbon reduction in the supply chain by encouraging their joint suppliers to develop carbon reduction strategies.

• Treatment of chronic kidney disease in Taiwan emits over 1 million tonnes of greenhouse gases annually - a person undergoing dialysis has a carbon footprint 1.7 times higher than average, say medical experts calling for earlier intervention to delay disease progression.

• Schools in Chiayi have installed 992 sets of desks and chairs made of domestically produced wood as part of the city’s carbon sequestration efforts.

Adaptation

• A new AI model has been developed to identify the arcades that provide essential shade for pedestrians. In future, the model could help map apps recommend shaded walking routes, not just the fastest ones.

• Climate change is on the agenda as the Minister of Foreign Affairs visits the Pacific island nation of Tuvalu, one of Taiwan’s 12 remaining diplomatic allies.

  Thanks for reading Taiwan Climate & Energy Briefing! Subscribe for free to receive new posts and support my work.

This Lunar New Year greeting from the Ministry of Environment is a play on words, using a horse-themed chengyu (idiom) 馬不停蹄 (“the horse does not stop its hooves”) to express Taiwan’s tireless efforts to protect the earth in the year of the horse.

The centrepiece of the image highlights Taiwan’s commitment to its 2050 net-zero goal (淨零 2050). Does this mean the reports of net zero’s death have been greatly exaggerated?

The International Energy Agency is facing renewed pressure from the US to abandon net-zero modelling, with US energy chief Chris Wright calling net zero a “leftist fantasy,” while many other countries are shifting their focus from net zero to energy security.

While I doubt Taiwan will give up its net zero goal, its slower than hoped progress on renewables targets and agreements to increase purchases of LNG from the US suggest we are in an era in which geopolitical concerns like energy security and aligning with American interests may trump the radical carbon cutting measures needed to reach net zero.

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In other news…

Energy

• If you’re new to the topic of Taiwan’s energy resilience, a recent piece from the Global Taiwan Institute offers an concise overview.

Wind

• Taiwan’s offshore wind Round 3.3 auction proposal has introduced a new incentive allowing developers to extend the standard 20-year power sales period by up to five years for early completion or ESG and resilience achievements. However, industry groups argue this may conflict with existing rights under the Electricity Act and undermine financing based on 30-year project lifecycles.

• Updates to the proposed selection mechanism for round 3.3 also include a penalty mechanism for contractors who have previously canceled a contract.

• Fishermen from Yunlin have been acquitted of fraud after a six-year legal battle. While fishing at sea in June 2020, the fishermen’s nets were destroyed by work boats and buoys from an offshore wind farm development. The offshore wind company initially paid compensation for the damage, but then accused the fishermen of fraud and coercion. Lawyers for the fisherman called the lawsuit SLAPP - a strategic lawsuit against public participation, wearing down the morale of critics by forcing them to spend time and money defending themselves in the courts.

Solar

• Wind resistance requirements for rooftop solar panels have been increased to ensure installations are typhoon resistant.

• Five public buildings will be retrofitted with solar panels on exterior walls as part of the government’s promotion of building integrated photovoltaics (bipv).

• The Ministry of Economic Affairs estimates that replacing >12 year old solar panels with newer, more efficient panels will be an effective choice, as even after replacement the original capacity will maintain the same higher feed-in-tariff rate until the end of the original contract period.

• Two schools in Taipei have caused controversy by cutting down and pruning trees to make space for solar panel construction for covered playgrounds. The Education Bureau has announced it will strengthen regulations for tree protection on school grounds going forward.

Hydropower

• The Dajia River Guangming Hydropower Storage Project has passed its preliminary environmental impact assessment review, despite concerns from civic groups that the development risk is too high as the area’s geology is fragile and vulnerable to earthquakes. Taipower plans to spend ten years installing four pumped-storage units (total capacity below 610MW) on the river.

Nuclear

• Responding to the new South Korean government’s plans to accelerate nuclear power, Taiwanese professor Lin Ren-bin argues that nuclear should not be treated as the only option for addressing Taiwan’s energy challenges:

“Policy decisions must not be made based on surface-level demand or short-term industrial interests, they must incorporate comprehensive considerations, including supply and demand projections, carbon reduction targets, environmental burdens, energy security and social equity.”

Gas

• Further protests have taken place against CPC’s1 proposed gas terminal expansion project at the Port of Taichung, which would require 60 hectares of land reclamation to build eight 180,000-kiloliter gas storage tanks. Environmentalists are worried the land reclamation could destroy white dolphin habitats - there are less than 50 of the endangered marine animals remaining in Taiwan.

• CPC responded saying the expansion plan will achieve a win-win result for conservation and the energy transition. CPC claims it attaches great importance to protecting dolphin habitats, has commissioned experts to conduct monitoring, and will minimise impacts during the piling stage.

• CPC expects to return to profit this year after six years of losses but is seeking a NT$350 billion, four-year capital injection from the government due to its high debt ratio.

Hydrogen

• Delta Electronics has announced it expects to launch hydrogen-related products by the end of this year, which will contribute to energy optimisation in AI data centers.

International Trade Deals

• The recent Taiwan-US trade agreement has been criticised by the KMT opposition party as undermining the government’s 2050 net-zero goal. The deal is expected to see Taiwan purchase around US$85.7 billion of natural gas, power equipment, and Boeing aircraft from the US by 2029.

• Energy transition is one of the pillars of the proposed Taiwan-Canada trade cooperation framework agreement. The signing of the agreement may be delayed to preserve Canada’s relationship with Beijing.

Energy Policy

• The government plans to classify green energy facilities as major public infrastructure projects, making them eligible for tax incentives, including up to five years of corporate income tax exemptions.

• Kaohsiung City has launched a community low-carbon subsidy program to encourage community buildings, public spaces, and homeowners to pursue energy generation, energy storage, and energy conservation projects.

Climate change

• Environment Minister Peng Chi-ming is leading a delegation to Europe. Speaking in Brussels, he hailed the EU as a “world leader” in tackling climate change, and accepted that Taiwan is still lagging behind the EU in climate mitigation. The visit has also included meetings with low-carbon building design and circular economy experts in the Netherlands.

Taiwan “shares the same goals and ambitions” as the EU in wanting to cut carbon emissions: “We are your friend on this” - Environment Minister Peng Chi-ming

• Taiwanese drivers who replace their fossil fuel powered vehicles with electric cars or scooters could claim as much as NT$16,000 and NT$2,000 respectively in carbon reduction replacement subsidies. Since the system’s launch in 2022, more than 120,000 fossil fuel vehicles have been replaced with EVs, resulting in more than 520,000 tonnes of carbon dioxide reductions.

• Why do young Taiwanese rarely show signs of climate anxiety? Reasons could include Taiwanese society generally prioritising economic development over environmental protection, prioritising career development, information overload, and the government failing to adequately address climate issues, according to this op-ed

“I feel that the proportion of young people in Taiwan concerned about climate change and the preservation of pristine natural environments has actually declined in recent years” - Huang Tai-hua, executive director of the Taiwan Owl Conservation and Wildlife Coexistence Association.

• The National Science and Technology Center for Disaster Reduction has won a global disability inclusion award for its Inclusive Evacuation and Shelter Assessment System - a digital platform which integrates scientific models and data to assist local governments in evacuation and shelter planning.

• New Taipei City has launched a Net Zero Health Check Center to help companies plan carbon reduction strategies to adjust to the EU’s CBAM and Taiwan’s carbon fee program.

• Carbon footprint labels for agricultural products - including rice, bananas, eggs, meat, seafood, vegetables, and mushrooms - have been expanded. Keep an eye out the next time you’re in 7-11, Carrefour, or PX Mart!

• Researchers have developed three new rice varieties that are able to withstand warming temperatures and uneven rainfall.

Green Energy Goal - So Easy (To Fall In Love Behind Schedule)

The timeline for Taiwan’s 20% green energy goal will be pushed back again.

The 20% goal forms part of Taiwan’s proposed “532” energy mix policy: aiming to achieve 50% gas power, 30% coal power, and 20% renewables by 2025.

According to the Energy Agency, renewable energy accounted for 13.1% of electricity generation by the end of 2025.

Solar - The Hardest Part

Speaking at the Ministry of Economic Affairs (MOEA)’s end of year press conference, the Economic Minister Kung Ming-hsin pointed out that the tightening of laws for ground-mounted solar projects has caused challenges in solar development.

20% will definitely be achieved, but the timeline will be delayed. - Economic Minister Kung Ming-hsin

At the end of 2025, installed solar capacity was 15.4 GW, short of the 20 GW target, with 2.53GW under construction. Given the challenges to new solar installation, the government is directing its efforts through three main efforts:

• Upgrading old solar installations with more efficient panels (expected to add 500MW)

• Mandatory installation of rooftop solar on new large buildings (expected to add 660MW)

• Installation of rooftop solar on buildings owned by government and state-owned enterprises (expected to add 343MW)

Wind - Getting There

However, the Minister remains optimistic on wind power - contractors for the auction round 3.3 should be selected by the end of the year, and plans for a floating wind demonstration project are underway with public consultations expected to be held in the first half of 2026. Currently Taiwan has over 400 wind turbines, which have successfully withstood earthquakes and typhoons.

Thermal - Dangerously Easy

The Minister also responded to concerns about sufficient power supply for industry (especially semiconductors and AI data centers) such as those raised by TSMC Chairman C.C. Wei.

With the Hsing-Ta and Taichung power plants expected to add 5.2GW of capacity this year, as long as everything proceeds as scheduled, there will be no power shortage problem.

Nuclear - Baby Steps

Regarding nuclear, Taiwan Power Company will submit a plan to restart the no.3 nuclear plant in March, and has already signed an MOU with the original manufacturer, Westinghouse, to conduct independent safety inspections.

US LNG - Man I Need

Taiwan’s plans to increase purchases of US natural gas to around ⅓ of its imported supply this year were also revealed at the conference, with Minister Kung saying Taiwan wants more gas from the US rather than other countries.

“We plan to increase purchases of natural gas from the U.S. to 30%-33% this year from about 10% now” - CPC Chairman Fang Jeng-zen

The move has been welcomed in the US, with think-tank The Foundation for Defense of Democracies commenting:

The announcement showcases Taipei’s commitment to strengthening its energy resilience amid growing Chinese pressure targeting the island’s electricity grid.

My take: Something in Between

Based on the announcements made at the press conference, as Taiwan enters the year of the horse it seems its energy policy seems to be moving in the direction of energy addition - more thermal generation, reconsidering nuclear - while the energy transition remains messy.

In other news…

Energy

Domestic Policy

• The Ministry of Economic Affairs (MOEA) said it is promoting net-zero buildings through promoting energy generation and efficiency in buildings through rooftop solar incentives, building-integrated photovoltaics (BIPV), and appliance replacement subsidies to improve energy efficiency.

• The MOEA released a draft regulation that would require major energy users to bring professional energy efficiency diagnostics teams to help identify key inefficiencies and develop five-year energy conservation plans.

• In response to environmental groups calling on the government to fulfil its coal reduction commitments, MOEA released a statement defending its efforts to replace coal generation with gas, highlighting that the proportion of coal-fired power generation nationwide decreased from 45.9% in 2016 to 35.4% in 2025. Taiwan Power Company will replace the existing 10 coal-fired units at Taichung Power Plant with 6 gas-fired units, and expects the plant to achieve coal-free power supply by the end of 2034.

US-Taiwan

• “Energy” was mentioned seven times in Minister of Foreign Affairs Lin Chia-Lung’s Foreign Affairs article “The Free World Needs Taiwan,” with references to Taiwan’s prowess in renewable energy, energy collaboration with ally Eswatini, and the US-Taiwan bilateral energy cooperation:

Taiwan has also sought to deepen bilateral energy cooperation with the United States. In March, Alaska Governor Mike Dunleavy visited Taiwan to witness the signing of a letter of intent on liquefied natural gas procurement and investment between Taiwan’s state energy firm, CPC Corporation, and the Alaska Gasline Development Corporation. This partnership both supports the U.S. economy and helps Taiwan diversify its energy sources by making the United States one of Taiwan’s top energy suppliers.

• Critical minerals - essential for renewable energy technologies - were a key pillar of the sixth annual Taiwan-US Economic Prosperity Partnership Dialogue (EPPD), held this week. The US could learn from Taiwan’s rare earths recycling in its efforts to reduce dependence on China, with Taiwan planning to build a pilot-scale rare earth production line in the next three years that could meet 50% of domestic demand. The two countries also recently signed the Pax Silica Declaration, a U.S.-led economic security alliance focused on AI and supply-chain resilience.

• A new US Congressional Research Service report on Taiwan’s defense and military issues (briefly) highlights the vulnerability of Taiwan’s energy infrastructure:

Taiwan’s energy, food, water, communications, and other infrastructure is vulnerable to external disruption.

Solar

• Taiwanese energy storage company Recharge Power Co has been contracted to install Taiwan’s largest solar plus storage project: a solar park with a co-located 48-MW/185.7-MWh energy storage facility.

• Four members of the Air Force’s 3rd Tactical Fighter Wing, which planned a solar leasing tender in 2022, have been convicted of accepting bribes or other improper benefits from a green energy company, with the most severe sentence totaling 13 years in prison.

Tidal

• Strong ocean currents near Keelung and Green Island could be utilised for tidal power plants. Swedish ocean energy company Minesto has received a €24,000 grant from the Swedish Energy Agency to develop tidal energy projects in Taiwan.

Wind

• For the third time, International Ocean Group has secured the operation and maintenance contract for the CIP Fengmiao offshore wind power project - which consists of 33 wind turbines with a total installed capacity of 500MW.

Hydrogen

• Researchers from National Sun Yat-sen University in Kaohsiung have created two new membranes that could advance hydrogen technology, with potential applications in hydrogen vehicles, hydrogen recovery in semiconductor manufacturing, and energy storage.

Geothermal

• This in-depth interview breaks down how Taiwanese geologists identify potential sites for geothermal energy development

Climate

• Published by climate group TCAN, the “Taiwan Corporate Just Transition Assessment Report” assesses the just transition related content in the most recent sustainability reports of seven key Taiwanese companies across the energy, cement, steel, and petrochemical sectors. The report finds that

Companies, which stand at the frontlines of the net-zero transition and serve as key decision-makers and implementers of various decarbonisation measures, have not played a significant role in Taiwan’s JT policy mechanism thus far.

It argues that the climate crisis has become an employment crisis, as companies’ net-zero plans lack training or timelines for workforce transition skills:

Not transitioning is in itself a form of injustice. Labour rights are not a pretext for companies to postpone climate action, and nor should climate action become grounds for employers to suppress or neglect workers’ rights.

• Environment Minister Peng Chi-ming will visit the EU on February 21st to discuss the Carbon Border Adjustment Mechanism (CBAM), ahead of its implementation later this year. He plans to confirm whether verification certificates issued in Taiwan can be compatible with those issued by the EU, and how carbon tax paid in Taiwan can be credited.

• Climate change, disaster prevention, new energy, and carbon reduction were mentioned at a KMT-Chinese Communist Party forum held in Beijing as “issues relevant to both sides.”

• As Taiwan braces for a cold surge (temperatures could drop below 6°C today and tomorrow in lowland areas), the environment Ministry announced plans to include “cold-weather adaptation” in its extreme weather adaptation plans. As climate change has led to warmer winters in recent years, people’s bodies have become less responsive and more vulnerable to sudden cold temperatures.

• Taiwan’s net-zero sports initiative is promoting greater integration of climate change with sports, suggesting the newly created Ministry of Sports should address the impact of rising temperatures on different sports to minimise the risk of heatstroke and heat exhaustion.

• Climate change threatens Taiwan’s highland frogs, with new research showing tree frog tadpoles can only tolerate warmth from 38°C to 40°C. To protect wildlife, heat sanctuaries and migration corridors that allow species to move to higher altitudes should be protected in urban planning.

• The first disaster prevention training course held for migrant workers was attended by Vice President Hsiao Bi-khim.

• The latest local and international carbon fee regulations have been integrated into the Ministry of Environment’s 48 hour green talent training program. The course is currently on offer at 36 universities across Taiwan, and was completed by 2,000 participants last year.

• China Airlines (despite its name, a Taiwanese airline) won the Sustainable Aviation Fuel Transformation Impact Award at the Sky Team Aviation Challenge. Currently all China Airlines flights departing from Taoyuan International Airport use 2% to 5% sustainable aviation fuel (SAF). Last year, on flight CI831 to Bangkok, the SAF addition ratio was increased to 40%, the highest ever.

• Pingtung county has launched 10 new electric buses to serve popular tourist destinations, and Keelung city plans to put 30 electric buses into operation in the second half of this year, eventually planning to replace all 123 old buses with electric ones by 2030.

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AI data centres

• The total electricity consumption of AI data centres in Taiwan is expected to reach around 450 MW by 2029 - up from 60 MW from 36 data centres at present.

• In response to public concern over this increased electricity demand, Taiwan Power Company has expressed that it hopes the public will support electricity infrastructure development, and suggests that AI data centres be located in areas with abundant renewable energy, such as near to solar power hotspots in central and southern Taiwan.

US-Taiwan

• Speaking at an Atlantic Council event, Taiwan’s Minister of Economic Affairs Kung Ming-hsin said that Taiwan is increasing its purchases of LNG from the US to ensure sufficient and secure supplies of energy for the AI industry.

• The US’ Taiwan Energy Security and Anti-Embargo Act (which would expand US LNG exports to Taiwan and encourage the use of nuclear energy) has been advanced by the Senate Foreign Relations Committee. The bill, along with two others on undersea cable resilience and funding for Taiwan’s allies, will next go to the full Senate for consideration.

Solar

• The Ministry of Environment hosted a sustainable development conference for sustainability leaders, which focused on the following four topics:

1. Accelerating the installation of solar panels. Rooftop solar is expected to exceed 1 GW this year, and in August all new buildings with a roof area of 1000 m2 will be required to install solar panels. The Ministry of the Interior also plans to promote building-integrated photovoltaics (BIPV).

2. Encouraging installation of solar panels in older buildings to achieve the aim of 100% of new buildings and 85% of existing buildings becoming near-zero carbon buildings by 2050.

3. Public sector leadership in energy efficiency and green procurement.

4. Improving disaster resilience by drawing on Japanese experience in waste management, including through the installation of AI-powered heat and smoke detection at landfills and local level temporary storage sites to deal with flood-related waste.

Offshore wind

• The first batch of subsea foundations for CIP’s 500 MW Fengmiao wind farm have been completed. The project remains on track for completion in 2027.

• 20 out of Fengmiao’s 33 foundations were manufactured by Taiwanese company Century Iron and Steel. While domestic manufacturing is now mature (it took only five days to assemble Fengmiao’s subsea foundations, compared to three weeks a few years ago), Taiwan’s local content requirement for wind turbines has just been scrapped. The loss of this policy protection poses a challenge for Taiwan’s domestic wind turbine supply chain, but Century Iron and Steel remains bullish on their ability to compete with international suppliers.

• Taiwan’s Energy Administration plans to further revise the Round 3.3 offshore wind selection process by adding energy resilience scoring, strengthening ESG requirements, and introducing a capacity expansion option to reward developers with strong execution performance. The Ministry of Economic Affairs aims to finalise the mechanism in the first half of this year, and complete the selection process by the end of the year.

Nuclear

• An exclusive interview with the director of Taiwan’s Nuclear Waste Office shares some of the content of the draft High-Level Nuclear Waste Siting Act, including underground research laboratories and long-term compensation via local sustainable development mechanisms. Less than 20% of Taiwan’s population has sufficient knowledge of high-level nuclear waste, so further public communication and education is critical to finding a sustainable solution.

• KMT chairperson Cheng Li-wun emphasised her party will continue fully promoting the resumption of nuclear power to ensure Taiwan has a stable power supply following her meeting with the US-Taiwan Business Council.

Hydropower

• The Ma’an Hydropower Plant Project in Taichung has received two international sustainability certifications from the Low Impact Hydropower Institute and the Hydropower Sustainability Alliance, the first hydropower project of its kind to do so in Taiwan.

Gas

• Taipei Gas has outlined its plans to move beyond being a “simple natural gas supplier” as it seeks to promote solid oxide fuel cells to strengthen Taiwan’s energy resilience:

“Energy security will be the core battleground for Taipei Gas in the future” - Taipei Gas Chairman

Climate

• A female turtle was discovered laying eggs on Taiwan’s outlying Xiaoliuqiu island in December, later than the typical breeding season. Experts suggest rising sea temperatures due to global warming may be extending the species’ breeding season.

• Environmental groups protested outside the Executive Yuan to question the effectiveness of the government’s coal reduction efforts, as the goal set under former President Tsai to reduce coal generation to 27% of the energy mix by 2025 seems unlikely to have been met. The government responded by stating that coal plant air pollution emissions have decreased 77% since 2016 thanks to efforts to replace coal generation with gas, and that major coal units at Taichung and Hsinta power plants are scheduled for retirement and replacement by gas units by the end of this year.

• Air pollution decreased by nearly 12% between 2021 and 2023 according to the Ministry of Environment’s latest air pollution emissions inventory.

• Blue carbon sinks (“blue” carbon is carbon captured by the world’s ocean and coastal ecosystems) have the greatest potential for carbon storage. Taiwan is currently promoting seagrass restoration and mangrove reforestation for carbon reduction, and this in-depth article breaks down how these methods can be best deployed to boost Taiwan’s natural carbon capture.

• The first joint meeting between Taiwan’s National Climate Change Committee and Healthy Taiwan Promotion Committee has been held to develop a national Climate x Health strategy.

• Taiwan’s Indigenous communities have been recognised as key partners in Taiwan’s net-zero transformation, with a new award mechanism launched this week to encourage businesses to buy low-carbon agricultural products from Indigenous communities.

• Speaking at a disaster prevention forum in Japan, President Lai shared his hope that Taiwan and Japan, both facing the challenges presented by climate change and geopolitics, can cooperate closely to build a model of disaster resilience for the world.

• Starting this year, building energy efficiency information will be clearly included in property descriptions, helping homebuyers better assess buildings’ energy conservation and carbon footprint, with the potential of more flexible mortgage terms for green homes.

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Lai’s opening statement emphasised the importance of climate governance for national security (very on-brand), industrial competitiveness, and social stability:

I want to emphasize that addressing the net-zero wave in global supply chains is a total war with repercussions for the nation’s survival.

As we pursue national security, societal resilience, and investment in the future, climate governance will be the most critical concrete action we can take.

His remarks seemed aimed at reassuring corporations and investors that the net zero transition will support - rather than undermine - industrial development, as he emphasising the government’s commitment to a stable power supply (to assuage fears over a power deficit) and the growth of renewable energy.

Lai’s call to firmly commit to net zero “to save the planet” may not prove sufficient to convince climate activists, especially as his speech gave precedence to the need to support industry while pursuing “pragmatic” carbon reductions.

At the end of the the meeting he outlined seven key tasks for Taiwan’s net-zero transition:

1. Energy and Industrial Transformation: Expand the development and application of green energy, remove regulatory obstacles, and ensure legal stability to attract long-term private investment and clarify the transition pathway.

2. Manufacturing Sector: Promote a “green digital dual-axis transformation” by integrating AI into production lines, optimising yield and energy efficiency, and helping high-carbon industries establish clear decarbonisation pathways to maintain international competitiveness.

3. Residential and Commercial Sector: Advance from “passive energy saving” to “active value-added” digital lifestyle transformation, combining building energy-efficiency labelling with public incentives and private resources to improve efficiency, safety, and social resilience.

4. Transportation Sector: Focus on lifestyle transformation, not just vehicle replacement. Promote electrification and decarbonisation of land, sea, and air transport while digitally integrating the Green Transportation Platform to encourage public adoption of low-carbon mobility.

5. Agriculture Sector: Apply science-based efficiency development, emphasise public-private collaboration and fair transitions, implement sustainable product matching mechanisms and carbon labelling, so that producers protecting land and oceans can benefit financially and gain recognition.

6. Science and Technology Integration: The National Science and Technology Council (NSTC) should integrate technology R&D with citizens’ daily lives, envision 2050 net-zero lifestyles, and develop context-specific solutions that reduce burdens while enhancing resilience.

7. Institutional Innovation: Continue implementing the “six major innovation systems” and report progress through the Executive Yuan’s National Sustainable Development Committee.

Other key developments from the Committee meeting include:

• Solar: Rooftop solar panels will have to be installed on new buildings with a floor area over 1000 m² starting this August. The new regulation is part of plans to expand household rooftop solar installations to add 200 mW of capacity this year. The Ministry of the Interior also announced plans to install solar facades during old building reconstruction.

• Offshore wind: A floating wind turbine demonstration project will (finally) be launched this year, with an estimated capacity of between 180-540MW. The selection rules for the round 3.3 offshore wind auction will be announced in the first quarter of 2026, with a goal of completing the selection of 3.6GW in the second half of the year.

• Finance: The government plans to increase offshore wind financing guarantees to NT$156 billion, provide NT$400 million for 20 community-scale disaster-resilient projects, and allocate NT$1.5 billion for industrial-scale energy storage. Subsidies have been allocated for fuel cells and energy-saving home appliances.

• Emissions reductions: the Environment Minister shared Taiwan’s greenhouse gas reduction achievements - net emissions in 2023 fell 4.64% from the 2005 baseline, by 6.70% in 2024 , and projections indicate that 2025 will achieve a 9% reduction compared to the baseline.

• Climate adaptation: A new phase of the National Climate Change Adaptation Action Plan will be launched from 2027-2030, which will include the establishment of a Climate Adaptation Resilience Center to address extreme heat and cold events through initiatives such as a health vulnerability map.

• Citizen action: The Executive Yuan has established a “Net-Zero Transition Community-Driven Coordination Platform” to integrate community-driven initiatives with government policy and develop a uniquely Taiwanese net zero transition model

• Transport: A “Green Transportation Service Platform” will be launched in June to provide the public with information on their carbon emissions and encourage greater use of public transportation. For maritime transport, the Ministry of Transport will coordinate with CPC to provide biofuels at Keelung Port in July and Kaohsiung Port in December.

• Local governments: in March, the Environmental Protection Administration will meet with local governments to set concrete carbon reduction measures.

In other news…

Energy

• The US Senate Committee on Foreign Relations will review four Taiwan-related bills on Jan. 29th, including the bipartisan Taiwan Energy Security and Anti-Embargo Act which would authorise:

  • Promotion of LNG exports and energy infrastructure resilience for Taiwan

  • Training to improve Taiwan’s critical infrastructure protection

  • Assistance and cooperation with Taiwan on nuclear energy, including new nuclear technologies such as Gen III+ nuclear reactors and SMRs

  • Provide (re)insurance to vessels transporting critical energy goods to Taiwan if it faces coercive maritime threats

If the bill is approved by the Committee, it will then need to pass the Senate and House of Representatives and Presidential signature to take effect.

• Taiwan Power Company (TPC) has announced that it has reduced air pollution from coal-fired power plants by 77% in the past ten years (from 56,000 metric tons in 2016 to 13,000 metric tons in 2025) and is planning for a 90% reduction by 2035 through new gas units and retirement of coal units.

• Ørsted has announced that the final wind turbine (out of 66) for the 920 MW Greater Changhua 2b and 4 offshore wind farms has been installed. Full commercial operation is expected in Q3 2026. Ørsted highlights the following technical achievements:

  • First offshore wind project in the Asia-Pacific region to deploy piling-free suction bucket jacket foundations at scale, keeping the underwater noise close to background levels during installation.

  • First offshore wind farms globally to install 14 MW wind turbines with 115-metre-long blades – the largest of their kind in the world – setting a new benchmark for large-scale wind turbine component deployment.

  • Completion of the 66-wind turbine installation campaign in only 275 days.

• Taiwan’s state-owned banks are expected to reach NT$2 trillion (US$63.4 billion) in issued green loans this year, with NT$405.4 billion invested in 592 renewable energy projects so far.

• Wistron Green Energy and Hwan Tai Geothermal will jointly invest in and develop a geothermal energy project in Taiwan, starting in the Taitung region.

• CPC (the state-owned oil and gas company) has raised petrol and diesel prices by NT$0.8 and NT$0.9 respectively (~£0.02 /US$0.03), citing international price increases due to the political turmoil in Iran as the key reason.

• Shinfox Natural Gas has signed a procurement agreement with a metal casting manufacturer to convert heavy fuel oil boilers to LNG, supporting New Taipei City’s goal to fully phase out fuel oil boilers by 2030.

• Taiwanese researchers have developed a super-thing graphene membrane which can convert seawater into clean water and generate electricity from solar and wave energy.

• TPC plans to work with the Ministry of Transportation and Communications to integrate grid infrastructure with a highway improvement project in eastern Taiwan, aiming to use underground cables co-located with highway tunnels to complete the island-wide grid and improve eastern Taiwan’s power resilience.

• Disputes over a large-scale energy storage facility in Fengyuan (豐原), Taichung continue. In response to ongoing protests, the developer has stated that there has been no illegal construction or impacts on a nearby historical site, as claimed by the protestors.

• Taitung County has opened applications for NT$31.5 million in subsidies to support household rooftop solar installations. Eligible applicants can receive NT$3,000 per kilowatt of installed capacity, with subsidies capped at NT$300,000 per project.

• Plans to expand Taichung Port - which could include the construction of a fifth LNG receiving terminal - have been criticised by environmentalists, who say the current plans threaten the habitat of the critically endangered Taiwanese white dolphin (fewer than 50 remain).

Climate

• Taiwan’s National Science and Technology Council (NSTC) plans to launch a net-zero technology innovation program next year with NT$50 billion of investments to support R&D on diverse low-carbon energy options, potentially including new nuclear technologies. TSMC has said it would be willing to collaborate with the government to support the program.

• Taiwan’s carbon fee system will take effect this year. This op-ed argues that over-generous preferential rates (NT$50 or NT$100 per ton compared to the NT$300 standard carbon fee) and an “overly broad” definition of carbon leakage means the system risks undermining the core objectives of carbon fees: incentivising emissions reductions and enforcing the polluter-pays principle.

• Taiwan High Speed Rail Corp ranked 5th among the world’s 100 most sustainable corporations this year in the Corporate Knights 2026 Global 100 ranking.

• An op-ed in the Diplomat calls for Taiwan to close its climate disclosure gap, as major government pension funds have not yet adopted clear ESG standards in their investment strategies.Taiwan’s Bureau of Labor Funds scored 0 in most sustainability metrics of the the World Benchmarking Alliance’s 2025 Financial System Benchmark.

• A new phase of the “From Risk to Resilience” program has been launched by Taiwan’s Ocean Affairs council to help allied countries in the Caribbean (such as Saint Kitts and Nevis and Belize) address climate change.

• Previously barren land in Chishang, Taitung County, has been successfully developed into Taiwan’s first-ever “Demonstration Zone for National Land Revitalization and Indigenous Carbon Credits.” To date, 130,000 trees have been planted, with an estimated accumulation of 21,600 tons of natural carbon sinks.

• Research on carbon-negative farming has shown interplanting Napier grass (a perennial forage crop) with sun hemp can increase the carbon storage of forage fields.

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But how will Taiwan’s energy transition towards LNG and renewables impact its coral reefs? This week, a few different news stories looked at the - contested - impacts of different types of energy infrastructure on Taiwan’s reefs.

LNG Terminal

Algal reefs have been damaged by the construction of the Guantang LNG Terminal near Taoyuan, according to underwater photos taken by environmental activists. The owner CPC (Taiwan’s state-owned oil and gas company) responded with their own observational data, saying the number of colonies is within the normal range and the environmental groups’ photos were misleading.

The decision to build the Guantang LNG terminal, Taiwan’s third, was the subject of much controversy due to the predicted impact on the algal reef ecosystem in the area, which is the largest remaining habitat for a critically endangered Taiwanese endemic coral species. The controversy culminated in a referendum on relocating the project in 2021, which ultimately failed. The project went ahead and received its first shipment of LNG last year

The terminal divided much of Taiwan’s environmental community, and is still a sensitive issue to many today. To massively oversimplify, the project revealed divisions between those who supported the transition to less-polluting LNG in order to phase out coal and reduce emissions, and those who were concerned about the ecological impacts on the algal reef.

Offshore Wind Turbines

Taiwan’s aggressive expansion of wind energy has had a “devastating” impact on rural oyster farmers and fishers according to this article from Rest of World, which links the growth of wind turbines purely to the power demands of the AI and semiconductor industries.

In response, a column in the Taipei Times called the story “a pile of romantic crap,” pointing instead to factors including global warming, increased number of typhoons, ageing populations, labor shortages, and foreign competition as the root of Taiwan’s declining oyster industry.

In fact, new research published this week shows that offshore wind farms in the Taiwan Strait have created highly diversified reef ecosystems, with the submerged structures of wind turbines attracting more than 80 reef-associated fishes from different ocean layers. Putting the “win” in “wind”!

In other news…

Energy

Electricity market:

• Taiwan Power Company’s (TPC) announcement of a “monthly subscription small-volume green power” program (月租小額綠電) for SMEs earlier this month has triggered strong backlash from the Renewable Energy Trade Association, which accused Taipower of leveraging its state-owned monopoly position to compete with private businesses for profits.

• In response, TPC has clarified that the electricity will not include FIT electricity and will come from its own self-developed renewable energy projects. TPC says the program fills a market gap for SMEs who have often struggled to access green energy due to their smaller demand, and that the estimated total annual contracted volume of the program will not exceed 10 million kWh, which is negligible compared with the overall green power volume of approximately 5.8 billion kWh in 2025.

Offshore wind:

• At an interministerial forum on climate change and net zero convened this week, the Ministry of Economic Affairs announced that as of the end of 2025 eight offshore wind farms have been completed and connected to the grid with a cumulative installation of 474 wind turbines and a total installed capacity of 4.4 GW. The National Development Council also shared that offshore wind development has been incorporated into the Trillion NT Dollar Investment National Development Plan as a priority. Host of the meeting Vice Premier Cheng Li-chiun also instructed authorities to continue a pragmatic assessment of the maximum sea area available for offshore wind power in Taiwan and to strengthen green financial support for the sector.

• Discussions over the developer selection mechanism for round 3.3 of offshore wind development are ongoing, with industry stakeholders this week calling for ESG scores to play a bigger role in selection decisions. In response, the Ministry of Economic Affairs said the selection rules will strike a balance between international standards and the development of domestic industries.

Nuclear:

• The World Nuclear Industry Status Report 2025 Mandarin Summary was officially launched in Taiwan by the Green Citizens’ Action Alliance. The report highlights that nuclear energy provided 9% of the world’s electricity last year, having peaked at 17.5% in 1996. 58 of the 63 planned nuclear plants globally are being built by authoritarian regimes. At the launch event, scholars called Taiwan’s energy policy direction of increasing LNG in the power mix one of “gas poisoning,” and also pointed out the large volumes of misinformation about renewables and nuclear energy circulating online.

• The Ministry of Economic Affairs (MOEA) is currently drafting the “High-Level Nuclear Waste Site Selection Act.” High-level waste refers to used fuel rods, while all other waste is considered low-level. Under consideration is the possibility of narrowing the geographic scope of referendums for areas selected as potential waste storage sites, in order to overcome past difficulties in progressing with site selection caused by local governments refusing to hold referendums.

• The No.3 nuclear plant has a new plant manager. He announced that the plant is currently carrying out a self-initiated safety inspection and expects to submit a safety review report within one and a half to two years, after which it will apply for the plant’s restart.

Investments:

• The Financial Supervisory Commission recently revised the “Regulations on Investment Management of Insurance Funds,” allowing special-purpose funds to invest in infrastructure with the goal of encouraging life insurance companies to allocate more capital to domestic construction projects. Life insurers such as Cathay said that future areas of focus will include renewable energy, water resource treatment and recycling, and data center infrastructure.

• The US has agreed to cut tariffs on Taiwanese goods to 15% as part of a deal which will see Taiwanese companies invest US$250 billion in the US. The details of which companies will make these investments, and what they will invest in, are not yet public, but reporting from the national news agency CNA suggests energy (maybe even LNG imports from Alaska) could play a role:

Taiwanese companies will make new direct investments totaling at least US$250 billion in the U.S. semiconductor, energy and artificial intelligence (AI) sectors, according to the Cabinet. (Source)

Meanwhile, Taiwanese semiconductor, electronics manufacturing services (EMS), AI, and energy companies will invest US$250 billion in the U.S. based on their own plans. (Source)

• TSMC Chairman C.C. Wei mentioned “concerns about Taiwan’s power supply” at TSMC’s investor conference, triggering a surge in the prices of energy-related stocks, including power industry giant Delta electronics whose stock prices reached a new high.

• Offshore wind emerged as one of the main drivers of overseas investment into Taiwan last year.

Solar:

• The former Mayor of a township in Changhua county has been impeached for abusing his position during solar power bidding projects, leaking information to help a specific company win the contracts and obtaining almost 5 million NTD in illegal benefits.

Misc.:

• The National Bureau of Standards is accelerating the development of national standards for hydrogen fuel cells to align with international standards.

• Taichung City has completed the conversion of all streetlights to LEDs, cutting annual electricity expenses by approximately NT$130 million.

• This year’s high school entrance exam featured questions on cutting-edge electricity technology: small modular reactors (SMRs) and tidal power generation.

Climate

• The new director of Yushan National Park (Taiwan’s highest mountain) announced that he will strengthen carbon sink management within the park to support Taiwan’s 2050 net zero target.

• Ahead of the introduction of carbon fees later this year, the Ministry of Environment has announced the review principles for determining which emitters face a high risk of carbon leakage, and are thus eligible for an 80% discount. Of the 465 facilities subject to carbon fee collection, 262 qualify.

• Taiwan’s carbon capture and storage (CCUS) projects currently store just 302,000 tons, only 5% of the 2035 target of 6 million tons - a target the Climate Change Agency Director recently admitted was ambitious. The MOE is coordinating with experts and industry to establish environmental review procedures for carbon storage.

• Education institutions and foundations under the Ministry of Education signed a “Sustainable Development Declaration,” pledging to promote sustainability education and net-zero carbon reduction.

• 35 carbon credit projects have been submitted by the Kaohsiung City Government, with the majority being equipment replacements and upgrades.

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Thank you for your support of this project last year - I’m looking forward to making it even better going forward. Wishing you all a healthy and happy year ahead!

In his New Year’s Day address to the nation, President Lai outlined his four main goals for 2026: building a safer and more resilient Taiwan, advancing toward a smart and prosperous Taiwan, achieving even more balanced development across Taiwan, and promoting democratic unity throughout Taiwan.

But for the first time since 2020, climate change and the energy transition received no mentions in the address.

The omission contributes to a growing sense that achieving its renewable energy and emissions targets is an increasingly uphill battle for Taiwan.

As a refresher, some of the challenges and key events of 2025 included:

• Taiwan rated as a “very low” climate performer,

• The amount of electricity generated by fossil fuels increased

• The phaseout of nuclear energy followed a failed re-start referendum

• 100,000 solar panels destroyed by Typhoon Danas

• Corruption cases and misinformation increasing public opposition to renewable developments

• Strict amendments to the environmental impact assessment process for solar project, limiting future development

All of these challenges have occurred against the backdrop of domestic legislative deadlock, with the opposition parties continuously obstructing the Lai administration’s proposed budgets.

Internationally, there has been heightened pressure from the Trump administration for Taiwan to prioritise defence ahead of 2027 - a looming date in the Taiwanese political consciousness ever since former US Indo-Pacific commander Philip Davidson predicted that China would attain the military capability to mount an invasion by 2027.

These external pressures have been brought into sharp relief due to Chinese military escalation. Between December 29-30, the Chinese PLA conducted a surprise large-scale military operation around Taiwan, launching rockets and deploying vessels into Taiwan’s contiguous zone.

The exercises appear to simulate a blockade of major port cities, bringing renewed attention to how such a blockade could disrupt Taiwan’s energy imports. Furthermore, Chinese cyberattacks targeting Taiwan’s critical energy infrastructure increased ten-fold last year.

Taken together, these challenges - constraints on the renewables industry, legislative gridlock, intensifying military pressure from China, an evolving relationship with the US - help explain why energy transition and climate change might not be top of the immediate agenda for Lai, as could be implied by their absence from his speech.

In response to these evolving priorities, I expect in 2026 we’ll see the consolidation of a shift already underway: from climate change and environmental concerns as a primary driver of energy policy to energy security and resilience as the dominant paradigm.

This reframing will see the emergence of competing visions of how best to secure Taiwan’s energy future - what mixture of renewables (pros: indigenous, diversified, international investment; cons: unpopular), nuclear (pros: reduces import dependence, reliable baseload power, supported by the US; cons: will take a long time, safety concerns), and LNG (pros: critical to Taiwan’s energy mix, can boost relationships with allies; cons: vulnerable to disruptions, storage challenges, carbon emissions) will be the most resilient.

Europe is facing a similar paradigm shift following Russia’s full-scale invasion of Ukraine, and while there are lessons Taiwan can learn from the European experience, Taiwan’s unique position means it has the potential to be a valuable laboratory for different approaches to energy security the world can learn from - in 2026, and beyond.

Looking ahead: energy and climate events in 2026

• Plans to restart two of Taiwan’s decommissioned nuclear power plants will be submitted to the Nuclear Safety Commission by March

• Taiwan’s carbon fee system will officially begin charging fees in May

• New climate adaptation action plans which are expected to incorporate high temperature protection measures, will be submitted by various ministries in May

• Taiwan Power Company will celebrate its 80th anniversary in May

• Taiwan will launch a trial emissions trading system (ETS) in the second half of 2026

• The 20GW solar energy goal and the 20% renewable energy goal are both expected to be met by November

• Local elections will be held in November

• Round 3.3 offshore wind auction is expected to be completed by the end of the year

• Taiwan’s 2050 circular economy roadmap will be launched this year

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In other news…

Energy

• The Ministry of Economic Affairs (MOEA) has announced the 2026 feed-in tariffs (FIT) and calculation formulas for renewable energy in Taiwan. Next generation geothermal receiving the highest rate of 8.5 NTD / kWh, but developers warn this is still not attractive enough. Solar FIT rates remain frozen, in an attempt to maintain development momentum after a series of setbacks last year.

• Taiwan Power Company has launched its 2026 small-scale green electricity program, introducing a subscription-based system for the first time, replacing the previous bidding mechanism. About 10 million kilowatt-hours are expected to be sold this year. The program is designed to meet short-term corporate green electricity needs with products that focus on short-term resale, in an attempt to increase flexibility in the domestic green energy market.

• Former President Tsai’s think-tank has advocated for the potential of community power plants to restore public confidence and engagement in renewable energy. Last year, the first project to receive support from the MOEA’s community power plant incentive program was successfully completed in Nanliao, Penghu.

• Taiwan Sugar Corporation aims to produce 10,000 biomass renewable energy certificates (RECs) this year. Last year, it produced 4,438 RECs, which were all sold to a semiconductor company. The company is also applying for an electricity business license in order to accelerate its deployment of solar projects in the face of review process bottlenecks.

Offshore wind

• The draft of the selection mechanism for the upcoming Round 3.3 auction will evaluate developers based on project delivery capability rather than price, replacing the much-criticised local content requirements with ESG commitments. The scoring will now be points based, evaluating past project performance, financial strength, project execution and ESG planning. The new system also supports corporate PPAs, meaning developers no longer need to bid on price. However, developers have expressed concerns about the vague ESG standards, and urged the government to prioritise resolving delays in existing 3.1 and 3.2 projects before launching new bids. The finalised selection criteria will be finalised later this year, with the selection process starting in the second half of the year.

Solar

• Taiwan’s seven major solar power industry associations called for the government to establish a more transparent and efficient review system to restore investor confidence after a difficult year for the sector.

• The Reporter provides an in-depth analysis of the challenges facing the sector - including the environmental impact assessment revisions passed in November last year - here.

Energy saving and efficiency

• The 2025 10.3 billion kWh energy-saving target was achieved ahead of schedule in mid-December last year.

• Around 1,500 SMEs are set to receive Ministry of Economic Affairs support for deep energy efficiency improvements this year.

Corruption

• A former executive of the state-run Green Energy Industry Promotion Center (GEIPC) Cheng Yi-lin (鄭亦麟), was indicted on corruption and money laundering charges in December. He is accused of accepting bribes and pressuring Taiwan Power Company to approve electricity supply to a construction company.

• Yunlin County Council Speaker Huang Kai (黃凱) has been sentenced to 4 years and 10 months in prison for accepting NTD 10 million in bribes from green energy companies.

Climate change

• Taiwan’s goal of UNFCCC inclusion remains unchanged despite President Trump’s decision to withdraw the US from the climate framework, according to MOFA.

• The Ministry of Environment’s draft guidelines for the new carbon fee system outline which industries are considered as having a high carbon leakage risk (the risk that production may move to another country with a lower carbon price). These companies can initially be exempt from 80% of their carbon fees, effectively paying only 20% of the standard rate, but critics warn this could reduce Taiwan’s carbon fee revenue by around 25%.

• 117 factories have had their voluntary emission reduction plans approved, securing discounted carbon fee rates of NT$50 or NT$100 per ton of carbon (the standard fee is NT$300) ahead of the carbon fee launch in May.

• Foxconn and British company Pace CCS have opened a new laboratory in Taipei to develop a solution to protect carbon capture and storage (CCS) infrastructure from corrosion - a major technical challenge to the technology.

• Taiwan faces a shortage of nearly 30,000 “green collar” workers.

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“This is the second time I’ve discussed “energy transition” with everyone since stepping down from office.

Developing green energy is a cross-party consensus in Taiwan. All three major political parties have proposed a target of achieving 30% renewable energy generation by 2030.

Now, the Legislative Yuan has passed amendments tightening environmental impact assessments for solar power projects. Coupled with corruption cases surfacing during photovoltaic development, this has thrown the sector into turbulence and raised public doubts about whether to continue pursuing solar power.

In the face of these negative impacts, I believe we must vigorously combat corruption regardless of political affiliation and actively address corruption-related scandals. Most of the cases currently under investigation began during my tenure. I cannot tolerate unscrupulous individuals exploiting green energy development for illegal profit. This harms the industry, damages the economy, and ultimately hurts the nation.

I also believe that industry players should collectively exercise self-discipline, while the government must continue providing an environment conducive to the sector’s healthy development. If the photovoltaic industry becomes stigmatized due to isolated cases, leading to a halt in green energy development—a move contrary to global trends—it would stifle Taiwan’s shared economic interests.

To ensure Taiwan’s energy security and maintain the industry’s international competitiveness, photovoltaic policy must evolve toward a 2.0 iteration. This requires improving spatial governance, restructuring benefit distribution, promoting civic participation, driving local development, and regaining public trust. Only then can we provide more stable and cleaner energy for Taiwan’s next phase of economic growth.” - Tsai Ing-wen on facebook [translation by DeepL]

Tsai’s think tank Thinking Taiwan has recently published two related articles on solar power calling for strengthened anti-corruption measures and arguing against the “regulatory spiral” which has seen the government continuously tighten regulations in response to controversies, advocating instead for better system design including expanding “self-generate, self-use models” to reform the benefit distribution of solar power.

Following Tsai’s online intervention, the DPP held a press conference to directly criticise the “Three Evil Acts on Solar Power” - the series of amendments passed by the opposition which have drastically curtailed the areas where solar projects can be built.

Rooftop Solar

Rooftop solar is one of the only remaining types of solar projects unaffected by the amendments - but a press conference held by civil society groups this week raised concerns that the government is backsliding on its commitments.

Upcoming regulations are set to mandate the installation of solar panels on newly built, expanded, or renovated large buildings.

Environmental groups raised concerns that the original draft would be scaled back to require only public buildings and factories to install rooftop solar panels.

“Under NDC 3.0, in order to cut coal’s share to 9% by 2035, Taiwan must reach 18 GW of rooftop solar, around 7% of total power generation. This means installing more than 900 MW of new rooftop solar capacity every year from now on. However, the current scaled-back draft, which excludes a large share of private buildings, would deliver only 88 MW per year—not even 10% of what is required.” - Taiwan Climate Action Network (TCAN) on LinkedIn.

After the civil society press conference, the Energy Bureau released a statement reaffirming its prioritisation of rooftop solar and announcing that the regulations will be released by the end of the year, with the scope of applicable buildings regulations to be the same as the draft issued in February. The Ministry of the Interior estimates that this could increase installed capacity by 66 kW annually.

As of October this year, rooftop solar installations had reached 9.7 GW, accounting for 64% of the total installed solar capacity.

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In other news…

Energy

• TRE100 - a Taiwan-specific framework for green electricity commitments that is a sub-initiative of the RE100 global corporate renewable energy initiative - was launched this week to support SMEs in their efforts to use green energy.

• A high-potential geothermal site has been confirmed in Yilan county, with temperatures of nearly 150°C found at a depth of around 4,000 meters.

• Taiwan’s first hydrogen station for public vehicles has opened in the southern city of Kaohsiung.

• The EIA for a proposed 6.4MW Ocean Thermal Energy Conversion (OTEC) plant in Hualien will go through another round of reviews. OTEC harnesses the temperature difference between warm surface seawater and cold deep sea water to generate electricity. As it is not affected by the weather, the technology has potential as a reliable renewable baseload power source. The proposed Heping project would be the first use of the technology in Taiwan.

• If Taiwan is to prevent climate change while also providing clean and stable energy, “the coexistence of nuclear power and green energy is inevitable” according to Tung Tzu-hsien, Deputy Convener of the National Climate Change Committee and Chairman of Pegatron Corporation. He emphasised that nuclear and renewable energy must advance in parallel.

• A rice wine distillery in Pingtung which uses biogas derived from alcohol production to generate electricity has been recognised as an “environmental education facility.”

• Old oyster racks are being turned into biomass fuel as part of Tainan city’s circular economy efforts.

• Deeper energy cooperation between Canada and Taiwan could help the two countries build a closer strategic relationship, as Alberta aims to double its oil exports to Asia:

“Alberta aims to double its oil exports to Asia, and Taiwan is eager to purchase Canadian oil and natural gas. As Taiwan stands on the front lines of authoritarian expansion, energy security transcends economic concerns—it is a strategic imperative for the solidarity and survival of democratic nations. Building upon this foundation of energy cooperation, Canada and Taiwan can forge a stronger security network.” - TECO Vancouver Director General Angel Liu [translated with DeepL]

Climate

• Over a thousand demonstrators took to the streets of Taipei over the weekend to urge lawmakers to include vegan meals into school lunch programs and promote vegan diets in line with Taiwan’s net-zero emissions strategy.

• Tainan now has nine new electric buses - a step closer to the government’s goal of fully electrifying city buses by 2030.

• Taiwan’s Tourism Administration is working to develop guidelines for calculating the carbon footprint of tour itineraries.

• The arrival of the first cold front after the onset of autumn has been occurring later in the year - a clear consequence of climate change.

• Japan and Taiwan have signed a MOU to cooperate in environmental labelling, to boost both countries’ green procurement efforts.

• Taiwan has the highest density of green building certifications in the world due to cooperation between the public and private sectors, according to Deputy Interior Minister Maa Shyh-yuan.

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