TAIPEI (Taiwan News) — The Ministry of Economic Affairs said Thursday that Taiwan has significant geothermal resources and favorable conditions for development, highlighting the energy source as a potential long-term contributor to the power supply.

Geothermal is a renewable energy source that uses heat stored within the Earth to generate electricity. Underground heat warms water to produce steam that drives turbines, according to Bank Sinopac.

Taiwan sits along the Pacific Ring of Fire, a region known for volcanoes and seismic activity, and within a young mountain-building zone. These geological conditions give the country abundant geothermal resources compared with many other countries, with an estimated 27 potential geothermal sites identified, according to the Geothermal Exploration System.

CPC Corp. Taiwan Chair Fang Jeng-zen (方振仁) said increasing Taiwan’s share of domestically produced energy would allow the country to respond more flexibly to energy crises, according to CNA.

The company previously drilled a geothermal well in Yilan's Yuanshan Township, reaching depths of more than 4,000 meters. A second deep geothermal project in Dongshan Township has currently reached about 2,200 meters, with a target depth of 4,000 meters expected by June.

Meanwhile, Taipower is expanding geothermal development through several approaches, including upgrading existing sites, developing areas around company-owned land, and partnering with domestic and international organizations. The company previously collaborated with CPC on the Renze geothermal power plant, a pilot facility with an installed capacity of 0.86 megawatts.

Given the strong geothermal potential in the surrounding area, Taipower plans to develop a second well at the site, which could expand capacity to three megawatts. A tender for the project and plant expansion is expected in the second half of the year.

Based on scientific modeling, the economic ministry estimates shallow geothermal resources at depths of 1–3 kilometers could reach about one gigawatt, while deeper geothermal resources at 3–6 km could reach roughly 40 gigawatts, according to Reccessary.

For comparison, Taiwan’s total installed power capacity reached 55.4 gigawatts at the end of 2023, according to Taipower. If geothermal resources were fully developed, they could theoretically supply about two-thirds of Taiwan’s electricity demand.