TAIPEI (Taiwan News) — After the US and Israeli war on Iran disrupted the global energy market, Taiwan’s reliance on natural gas has re-centered the nation’s energy policy in the national debate.

Taiwan, like many other nations, chose natural gas as the bridging energy for its energy transformation. The move initially faced resistance, with critics noting potential risks to energy security in the event of war in the Middle East, along with concerns that natural gas may leak into the atmosphere during storage, per Environmental Information Center.

Still, the country has embraced natural gas because it emits fewer air pollutants, such as carbon dioxide and other hazardous particles, during power generation. The shutdown of Qatari LNG supply, which contributed to 33% of Taiwan’s needs, has forced Taipei to source LNG from other suppliers at a premium, increasing costs for state-owned Taipower, per ETtoday.

Taiwan’s natural gas reserves have also drawn concern. Taipower is required by law to store enough natural gas for 11 days of usage and maintain capacity for 20 days of usage, per Liberty Times. Former Economic Minister Wei Kuo-yen (魏國彥) warned that Taiwan’s reliance on LNG could pose a national security risk if cross-strait relations deteriorate enough to disrupt commerce.

Nuclear

Under the energy policy outlined by former President Tsai Ing-wen (蔡英文), Taiwan aimed for an energy structure of 50% natural gas, 20% renewable energy, and 30% coal by 2025, per the Reporter. The only target fully achieved was Tsai’s denuclearization policy, with other goals falling behind schedule.

Furthermore, the “nuclear-free homeland” is now under review by President Lai Ching-te (賴清德), per UDN. Citing Taiwan’s growing energy demand driven by AI development, Lai has signaled the government may reopen the Maanshan and Guosheng nuclear power plants, along with investment in emerging nuclear technologies, to avoid potential power shortages.

While experts continue to debate the benefits of small modular reactors, Lai’s administration has prioritized addressing Taiwan’s nuclear talent gap, per China Times. Tsai’s push for denuclearization discouraged a new generation of nuclear professionals from entering the field, given limited long-term prospects as plants were phased out.

Beyond rebuilding Taiwan’s nuclear industry, Lai also needs to persuade supporters to accept the party’s shifting position. A DPP insider noted that older supporters’ resistance to nuclear energy is partly emotional, rooted in past anti-nuclear activism, per China Times.

Coal

The DPP’s failure to meet energy transition targets has drawn criticism from both supporters and opposition parties. The Taichung Thermal Power Plant, a longstanding point of contention between Taichung Mayor Lu Shiow-yen (盧秀燕) and Taipower, faced renewed scrutiny after opposition lawmakers alleged that Taipower increased coal-fired generation following the shutdown of the Maanshan Nuclear Power Plant in 2025, per UDN.

Environmental groups noted that by January, Taiwan’s coal usage exceeded its projected reduction target by 2,309 tonnes, per CMMedia. Government Watch Alliance CEO Hsu Hsin-hsin (許心欣) said Taipower must reduce output from the Taichung plant to make meaningful progress, adding that no substantial reductions were made between 2021 and 2024.

Recently, the government contacted the privately owned Mailiao Power Plant in Yunlin County to discuss purchasing electricity from its two coal-fired generators. Taipower said it was strengthening grid resilience, though environmental groups described the move as a setback for Taiwan’s energy transition.

Hydro

In Taiwan’s renewable energy push, hydropower has the longest history but has since fallen behind wind and solar, accounting for 12.4% of renewable energy output in 2024. Historically, Taiwan’s hydropower came from large infrastructure projects that dammed rivers to supply electricity.

More recently, the focus has shifted to small and micro hydropower, which uses existing irrigation canals and water infrastructure to provide lower-cost alternatives to conventional hydroelectric generation, per UDN.

Notable examples include facilities in Taitung County, such as Leichia Water Treatment Plant and Guanshan Canal, which is scheduled to open in 2027 with a combined capacity of 26.15 megawatts. However, water rights applications and relatively high capital costs have slowed investment, per PTS.

Environmental impacts can also be significant. A small hydro project in Hualien County’s Fengping River, consisting of two generators, may divert up to 95% of the river flow, prompting strong opposition from Indigenous communities, per AgriJourney News. While small and micro hydro projects may improve grid resilience, they may also pose ecological risks, per Environmental Information Center.

Geothermal

Unlike hydropower, geothermal energy development in Taiwan had a later start, beginning in the 1970s in response to the energy crisis, per UDN. The government built a 3-megawatt geothermal power plant in Yilan County’s Qingshui, which was later abandoned after sediment buildup in the groundwater reduced efficiency, per Environmental Information Center.

The Qingshui site was later revived as the first civilian-run geothermal facility in Taiwan, exceeding one megawatt in capacity, with operations beginning in 2021.

Situated on the Pacific Ring of Fire, Taiwan has significant geothermal potential, though installed capacity remains at 7.49 megawatts as of 2024, accounting for 0.1% of total renewable energy output. Compared with solar and wind, geothermal energy offers lower environmental impact and more stable output, per Global Views.

However, high upfront costs remain a major barrier, with drilling surveys potentially costing tens of millions of Taiwan dollars (US$314,465) without guaranteeing a viable site, per Our Island. Many geothermal-rich areas are also located on Indigenous land, raising disputes over resource use and land rights, per Our Island.

Taiwan has also begun recruiting foreign firms, including energy company Halliburton, to help develop geothermal resources, per Environmental Information Center.

Land-based wind

Wind, like geothermal energy, also draws on foreign capital and expertise for development. As two core pillars of Taiwan’s renewable energy push, wind accounts for roughly 31% of Taiwan’s renewable energy output.

Taiwan’s wind turbine installations are divided into two categories: land-based and offshore, with the former facing local opposition and the latter experiencing supply chain challenges. In the early stages of land-based wind development, health and environmental impacts were often not fully considered, with restrictions limited mainly to protected and other sensitive areas.

The government later required wind turbines located within 500 meters of residences to undergo environmental impact assessments after years of advocacy from environmental groups. Citizen of the Earth said regulations governing land-based wind turbine installation remain limited.

The Economic Ministry continues to support land-based wind development, except in specific problematic cases, though Environment Minister Peng Chi-ming (彭啓明) has voiced personal opposition to future land-based wind turbine projects, per UDN.

For existing land-based turbines, concerns remain among nearby residents. In New Taipei’s Shimen District, locals accused Taipower of skewing noise pollution data by conducting measurements during summer months, when turbines are typically quieter than during the stronger northeasterly winds of winter.

Offshore wind

Offshore wind projects have faced similar backlash. Fishers say turbine construction and subsea cable maintenance disrupt fishing activities, per AgriJourney News. In Changhua County, oyster farmers report that turbine construction has significantly affected their livelihoods.

Farmers say sediment stirred during construction has affected oyster growth cycles. Oysters that typically take one to one year and three months to reach harvest size have, in some cases, failed to reach harvestable size even after four years.

Researchers have also warned that anti-corrosion measures used on wind turbines could release thousands of tonnes of aluminum and other metals into the water, per AgriJourney News.

A more structural challenge facing offshore wind development is Taiwan’s attempt to build a domestic supply chain from scratch, per PTS. Foreign expertise and materials are needed for wind turbine installations and the domestic manufacturing process, driving up cost and slowing down wind turbine development.

The higher costs have slowed wind farm development, as developers rely heavily on bank financing. Banks, in turn, often require developers to secure long-term power purchase agreements before approving loans.

Foreign investors have also begun leaving the market, citing an increasingly difficult investment environment, per Mirror Media. Tien Li Offshore Wind Technology, Taiwan’s only domestic wind turbine blade manufacturer, ceased production after its Danish partner Vestas ended cooperation with the company, per SETN.

Government adjustments to local content requirements have also raised concerns, particularly regarding Chinese-made components, per the Reporter. Taiwan’s law prohibits importing complete wind turbines and restricts many critical components from China.

A former Ministry of Economic Affairs official said Taiwan should protect its domestic manufacturing capacity by limiting reliance on Chinese parts. However, Siemens Gamesa Renewable Energy Executive General Manager for Offshore in APAC Niels Steenberg pointed out that the European Union, while cautious about Chinese security risks, has recognized that the global energy transition is difficult without China’s manufacturing capacity.

Looking ahead, Taiwan’s offshore wind sector is expected to adopt new technologies as shallow-water areas suitable for jacket foundations may become saturated by 2030. Airborne Wind Energy, promoted through a joint venture between German firm SkySails and local company AiSails, uses high-altitude kites to capture wind and generate electricity through ground-based systems, operating at altitudes of up to 750 meters, per Environmental Information Center.

Another emerging option is floating offshore wind. After being rejected by the then–Economic Minister Kuo Jyh-huei (郭智輝) due to cost concerns, the proposal gained renewed support after approval from Economic Minister Kung, per Global Views.

Rooftop solar

Solar power is the fastest-growing segment in Taiwan’s renewable energy push, contributing 45.1% of total renewable electricity generation in 2024. The country currently pursues three main strategies for expanding solar output: rooftop solar installations, ground-based solar farms, and fishery and electricity symbiosis projects, per the Reporter.

Rooftop solar is among the few areas of former President Tsai’s renewable energy policy that have met targets. According to the Energy Administration, Taiwan reached nine gigawatts of installed rooftop solar capacity by 2024, exceeding its 2025 target of eight gigawatts.

The government recently announced mandatory rooftop solar installation for new construction, expansion, or reconstruction projects with building areas exceeding 1,000 square meters, per Commercial Times. For smaller buildings, it offers subsidies of NT$3,000 (US$94.3) per kilowatt-hour.

Environmental groups argue the policy remains too conservative, proposing that buildings over 300 square meters should be required to install rooftop solar systems, per Our Island.

Developers, however, say the subsidies function as a small bonus for those already planning installations rather than a meaningful incentive. Rooftop solar operator Sunnyfounder CEO Feng Hsiao-ju (馮嘯儒) said a typical 20-kilowatt-peak system costs roughly NT$1.2 million, with the NT$50,000 subsidy covering about 4% of total costs.

Photovoltaic Industry System Association representative Kuo Hsuan-fu (郭軒甫) said the application process is lengthy regardless of system size. He noted that building a 10-kilowatt system involves a similar process to a 100-kilowatt installation, discouraging smaller-scale investors.

Citizen of the Earth specialist Lin Kuan-ling (林冠伶) said rooftop solar should be prioritized over ground-based solar development due to widespread controversy surrounding land-based projects.

Solar farm

A 2024 solar farm development flashpoint in Yunlin County’s Wayao village highlighted tensions over ground-based solar expansion, per AgriJourney News. Villagers organized protests against a solar project located in the heart of the community, calling it “legal but not reasonable.”

Residents said developers failed to adequately consult the community, while developers argued the protests stemmed from internal village disputes over compensation. Yunlin County officials said they are responsible for overseeing green energy initiatives but rely on limited regulations set by the central government.

Architect Li Lu-zhi (李綠枝) said the lack of rules requiring community-oriented design means cost considerations dominate development decisions. Communities facing similar disputes as Wayao village said monetary compensation can deepen local divisions, with those living closer to projects bearing the impacts while others receive benefits.

For developers, land acquisition remains a major obstacle. Chen Kun-hong, whose company has withdrawn from ground-based solar development, said past land reforms have fragmented rural land ownership, per the Reporter.

Chen said consolidating 239 hectares for a solar project could require negotiations with 200 to 300 landowners, with each individual often representing families or groups. He added that some land parcels are used in ways not reflected in official registrations, increasing the risk of forced removal of existing uses and discouraging landowners from participating.

Another challenge is inadequate grid infrastructure in key development regions. Because Taipower’s transmission system was built around regional demand patterns, coastal areas in Changhua, Yunlin, and Chiayi counties have suitable land for solar farms but lack sufficient grid capacity to transmit power.

Fisher-solar symbiosis

In fishery-solar symbiosis projects, government policy changes have created further challenges. Ark Solar Energy Corporation, the largest developer in the initiative, faced financial strain after a policy shift requiring fisheries to demonstrate aquaculture output before grid integration.

Earlier practices prioritizing electricity generation over aquaculture have been criticized for harming Taiwan’s fish farms, per AgriJourney News. Under the environment, Ark Solar Energy Corporation expanded solar installations faster than its aquaculture operations could keep pace, leading to debt when completed projects could not be integrated into the grid.

Agriculture Development Association CEO Hou Yen-lung (侯彥隆) said the initiative required collaboration with experienced fishers, but developers focused primarily on installing solar panels. Initiative expert Yeh Hsin-li (葉信利) said expanding projects without resolving ongoing design issues leads to repeated revisions and delays.

The fishery-solar initiative is central to Taiwan’s goal for solar to reach 20 gigawatts of capacity by 2026. However, repeated policy revisions have left 2.41 gigawatts of solar and fishery symbiosis capacity still under construction or pending approval. Of the 1.01 gigawatts of capacity already connected to the grid, only 4% meet the originally submitted aquaculture integration plans, per the Reporter.

In response to these challenges, the government is considering separating fisheries from solar operations within the initiative, effectively making fishers solely responsible if projects fail, per AgriJourney News. Critics argue the policy, originally designed to increase fisher income, may end up favoring solar developers more heavily than before.

National Sun Yat-sen University Assistant Professor Chen Te-jung (陳德容) said the proposed rules, which would exempt developers from coordinating designs with aquaculture farmers while assuming compatibility, do not reflect operational reality. She added that providing solar projects with protections against natural disasters, while similar protections are not extended to aquafarmers, could further erode public trust in the initiative.