Natural Power
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Taiwan’s energy sector maximizes renewables. In late July Typhoon Gaemi made landfall in Taiwan with sustained winds reaching 184 kilometers per hour and gusts of up to 227 kph. When the category four storm had passed, not only were the country’s 340-plus wind turbines in the Taiwan Strait unscathed, but they had produced an impressive 7 percent of the national daily power output, according to statistics released by the Ministry of Economic Affairs (MOEA). This performance is testament to the immense potential of renewable energy that underlies the government’s decisive pivot toward harnessing sustainable resources to fuel Taiwan’s energy future.  

The country has already made substantial progress. “In 2015 around 4 percent of total electricity was generated by renewables, and this figure is projected to exceed 20 percent by the end of 2026,” said Lee Chun-li (李君禮), deputy director general of the MOEA’s Energy Administration (EA). To meet this target, nearly 90 percent of the required 29 gigawatt installed capacity will come from the solar and wind sectors, with the remainder provided by biomass, geothermal and hydroelectric sources. “Energy transition is a key element of the government’s net-zero emissions policy” Lee said. “We’re expanding our use of renewables while emphasizing power-saving measures.” Released in 2022 by the Cabinet-level National Development Council, the Pathway to Net-Zero Emissions in 2050 aims for 60 to 70 percent of electricity to come from sustainable sources and 9 to 12 percent from hydrogen by mid-century. At the same time, nuclear and coal will be phased out, and natural gas, supplemented by carbon capture, storage and utilization technologies, will account for less than 27 percent of the total.  

A solar farm in Tainan reflects the southern city’s key role in expanding Taiwan’s green energy capacity. (Courtesy of Taipower)

Taiwan is uniquely positioned to capitalize on renewable resources due to its geographic location,” said Tsai Chih-meng (蔡志孟), vice president of state-run utility provider Taiwan Power Co. (Taipower). “Countries situated along the Tropics of Cancer and Capricorn receive sunlight at a better angle than places on the equator, making solar power generation more efficient,” he explained. “In addition, the Taiwan Strait offers abundant wind resources, particularly with the northeast monsoon during autumn and winter.” With some of the world’s most productive wind farms, Taiwan now ranks as the seventh-largest generator of offshore wind power globally, the EA said.  

Looking ahead, offshore wind capacity is expected to grow from 2.4 GW in June to 13.1 GW by 2030, while solar power is set to increase from 13.4 to 31 GW over the same period. Tsai also noted plans to adopt floating wind turbines, which are set up in waters deeper than 50 meters and anchored like ships. In the solar sector, the focus is on rooftop panels, along with ground-mounted and floating systems, in line with the amended Renewable Energy Development Act, which stipulates that new and renovated buildings must incorporate photovoltaic power facilities.

Taiwan Power Co.’s 24-hour Central Dispatch Control Center manages nationwide electricity distribution.(Courtesy of Taipower)

New Directions

As the primary body managing the country’s electricity generation, transmission and distribution, Taipower oversees the expansion of renewable energy. Last year, the company achieved a capacity of 2.54 GW and generated 4.6 billion kilowatt-hours, which accounted for 14 percent and 17 percent of national totals, respectively. “The next stage is to develop a stable 24-hour source of electricity,” Tsai said. “With Taiwan’s position in the Pacific Ring of Fire, the country possesses several active and dormant volcanic groups, pointing to substantial geothermal resources.” To tap into subterranean heat, Taipower teamed up with state-run energy supplier CPC Corp. to construct a geothermal plant near the Jiuzhize Hot Springs in the northeastern county of Yilan, which came online last year with an installed capacity of 0.84 megawatts. As of last August, a total of six geothermal power stations had been established in Taiwan, with a combined capacity of 7.49 MW. Plans are underway to reach 200 MW by 2030, according to the EA, which has set a long-term goal of 3 to 6 GW by 2050.  

Taipower is also collaborating with Taipei City-based Academia Sinica, the country’s foremost research institution, to explore hydrogen energy. “Local investigations into hydrogen technology started more than two decades ago,” said Tseng Chung-jen (曾重仁), a professor in the Department of Mechanical Engineering at National Central University (NCU) in northern Taiwan’s Taoyuan City. “Now’s the time to expand investment in this next-generation energy option.”  

Tseng, who also serves on the Presidential Office’s National Climate Change Committee, leads a team specializing in hydrogen-related R&D. With hydrogen’s potential to play a key role in decarbonizing the energy system, government policy has increasingly promoted collaborative industry-academia projects. “This field requires advanced technical expertise, from hydrogen production to its compression, transport and storage, as well as its applications in formerly carbon-intensive industrial processes,” Tseng explained. As hydrogen products are expected to become a significant part of Taiwan’s energy imports, he stressed the importance of mastering vital technologies and making timely overseas investments to build international partnerships to meet the country’s needs.

Tseng Chung-jen, left, explains the electricity storage system at NCU. (Photo by Chen Mei-ling)

Deft Balance

NCU’s Center for Energy Research, which designed and operates a campuswide system run on solar and hydrogen power, is a model for Taiwan’s future energy sector. A smart grid, which integrates electricity generation, storage and conservation, serves as a self-sufficient model that Tseng hopes to see implemented in industrial parks and local communities as an alternative to Taipower’s centralized networks. “The current system loses a significant amount of electricity during transmission from power plants and poses a national security risk,” he explained. “A broader rollout of grids like NCU’s would address both issues.” Meanwhile, both NCU and Taipower are installing smart meters that report electricity consumption and help users reduce bills. They are now operational in more than three million households nationwide.  

As the NCU campus system demonstrates the benefits of smart grids and decentralized energy management, the increasing use of artificial intelligence (AI) has introduced new considerations for future energy planning. Despite concerns about the additional electricity demands of AI, Tseng is optimistic. “AI consumes electricity, but it’s also very useful for optimizing energy generation and conservation,” he said. For example, AI-assisted grids help address the intermittency challenges of renewables like solar and wind by automatically adjusting energy production, storage and distribution based on factors such as forecasted weather conditions.  

The geothermal plant near Jiuzhize Hot Springs in the northeastern county of Yilan has an installed capacity of 0.84 megawatts. (Courtesy of Taipower)

With AI-driven trends accelerating semiconductor industry expansion and electric vehicle development, Taiwan’s electricity demand is projected to rise by an average of 2.8 percent annually from 2024 to 2033, according to the MOEA. At the same time, the country must address regional imbalances in supply, particularly in the heavily populated north. To tackle these challenges, the government is currently expanding natural gas capacity at the Datan and Hsieh-ho power plants while restricting data centers requiring more than 5 MW in the region, along with other measures to maintain national grid stability. Taiwan’s ambitious push to advance renewable energy, bolstered by strategic planning and innovative technology like AI, reflects a clear commitment to balancing growing energy needs with sustainability. The future of energy lies not only in meeting demand but in reshaping the entire system for a more resilient tomorrow. Write to Pat Gao at cjkao@mofa.gov.tw