Taiwan has set a policy to create a "nuclear-free homeland," aiming to phase out nuclear power generation by 2025, increase renewable energy and decrease coal-fueled power. However, a recent massive power outage has highlighted the challenges Taiwan faces in its energy transition.
A human error disrupted natural gas supply to a major power plant in northern Taiwan, resulting in the massive outage that affected 6.68 million users August 15.
The incident has raised a question why Taiwan's power grids are so fragile and vulnerable. President Tsai Ing-wen admitted Taiwan's power supply system is obviously overly fragile in terms of design and management, and over the years there have been no major attempts to improve it.
Apart from peak months in the summer, demand from industries has been rising. Semiconductor foundry giant Taiwan Semiconductor Manufacturing Company (TSMC) plans to set up 5nm and 3nm processes in the near future, with respective power consumption estimated at 2.22GW and 2.10GW. If TSMC keeps expanding its capacity for advanced processes, can Taiwan's current energy structure bear the heavy burden in the future?
Some industry leaders have urged the Taiwan government to rethink its nuclear-free policy, supported a recently amended Electricity Act that stipulates all nuclear power generators be decommissioned by 2025.
But academic groups have recommended that, in order to maintain a between power supply and demand, energy prices must be adjusted through more transparent and open mechanisms. The government should also adopt green taxes or other policy tools to reflect the energy costs.
Article translated by Adam Hwang
