BALANCING DOMESTIC CONSTRAINTS AND INTERNATIONAL ENVIRONMENTS: THE CASE OF TAIWAN’S ENERGY POLICY

Abstract

In this research, we explore the energy environment in Taiwan shaped by domestic industrial demand and external geostrategic pressures. It is still very heavily dependent on imported fossil fuels and we find that electricity generating capacity is dominated by coal, oil and natural gas. Large consumers like TSMC highlight the strategic importance of energy security. The governance of the electric sector highlights the underlying tensions that exist between promoting economic development, environmental sustainability, and public opposition to the use of nuclear power. The government has responded to this with efforts to promote renewable sources of energy such as solar, wind, bio-energy, geothermal energy and ocean energy through feed in tariffs, electricity policy and infrastructure subsidies.  However, by the end of 2024 renewable energy sources produced only 11.9% of Taipower’s generated electricity which indicates the problems associated with fully substituting thermal supply. The decentralized nature of the supply of renewable energy sources exposes governmental policy problems in addressing the local energy demands. It is still far too uneven, and also notable are the demands of the businesses in the sector for efficiency in production that are at odds with socio-environmental objectives. The energy future for Taiwan lies in addressing the balance between sustainability, energy security and electricity diplomacy in response to changes in present international relations.