Taiwan's Energy Dilemma: Navigating the Fallout of a Nuclear Plant Closure

By Sing Yee Ong and Cindy Wang

May 16,2025 (Bloomberg) – Back in 1996,a freighter laden with nuclear waste tried to dock at Orchid Island,located off Taiwan’s southeastern coast. The ship never made it ashore. Local residents, primarily from the island’s indigenous community, rallied together using fishing boats and rocks to block its path. “I told them we’d set the ship ablaze if they insisted on coming in,” recalled kuo Chien-ping, one of the protest leaders. On land, people armed themselves with stones and bottles filled with water—pretending they were flammable—to defend their home known as Lanyu. “It was a pivotal moment; for once, the government actually listened,” saeid Syaman Lamuran, who joined his family in the protest.This act of defiance marked a important turning point for Taiwan’s long-term strategy regarding nuclear energy. This weekend will see the shutdown of its last reactor—a move that poses challenges for Taiwan’s energy-intensive semiconductor industry amid rising tensions with China and contradicts global trends favoring nuclear power as countries strive to meet climate goals.

The implications are serious: this final reactor closure is expected to coincide with a projected 13% increase in power demand by decade’s end due largely to data centers and chip manufacturers like TSMC (Taiwan Semiconductor Manufacturing Company).Each decommissioned reactor adds approximately $500 million annually in liquefied natural gas (LNG) import costs according to bloomberg estimates.With energy needs on the rise, experts predict that by 2030 Taiwan may need an additional $2 billion yearly for LNG imports alone. Companies such as TSMC are already feeling financial strain from soaring electricity prices that exceed those at their international facilities.

Fast forward nearly thirty years since that standoff at Orchid Island; protests have shifted from fierce confrontations to more subdued gatherings advocating for keeping Maanshan Nuclear Power Plant operational on Taiwan’s southern coast. Recently over a hundred activists—including lawmakers—gathered outside Taipei’s Ministry of Economic Affairs waving banners proclaiming “Wrong policies will ruin Taipower.”

taipower has been grappling with rising fuel costs alongside investments into renewable energy sources which have strained its finances substantially; it reported losses exceeding NT$420 billion ($14 billion) by year-end last year due to these pressures while trying not to raise rates for consumers.

“Extending nuclear plant operations is crucial if Taipower wants financial stability,” stated Java Yang from Taipower who organized recent pro-nuclear demonstrations.He pointed out how skyrocketing natural gas prices have compounded losses while renewable projects haven’t delivered expected results.

In response to growing concerns about energy security and economic viability surrounding this phaseout strategy—the Taiwanese legislature recently revised laws allowing potential extensions or renewals of licenses for existing reactors up to twenty years into the future—but whether this will be acted upon remains uncertain given Maanshan is nearing its operational limit after forty years of service.

Interestingly enough though one opposition party plans a public referendum regarding resuming operations at Maanshan come August—a similar vote back in 2021 resulted narrowly against keeping another plant open but sentiments appear different now according lawmaker Chang Chi-kai who believes current public opinion favors restarting operations based on recent polls indicating majority support among citizens towards nuclear power again after decades-long resistance fueled by safety fears post-Fukushima disaster back in Japan during 2011 which had devastating consequences worldwide including here where seismic activity raises alarms about potential accidents occurring locally too!

Since then efforts toward transitioning away from atomic generation intensified culminating into legislation passed under Democratic Progressive Party leadership mandating complete phaseout despite enterprising targets set initially falling short leading instead towards increased reliance upon fossil fuels like natural gas contributing further emissions concerns amidst climate change discussions globally especially when considering how much carbon output could spike without any form sustainable alternatives available soon enough!

As things stand now following this weekend’s shutdown roughly eighty-four percent electricity generated within Taiwan will derive solely through fossil fuels compared just five percent previously attributed directly towards nuclear sources back early two-thousands! While acknowledging environmental impacts associated long-term waste produced via atomic processes versus cleaner options available today still leaves many questioning whether phasing out entirely makes sense economically speaking given risks involved should geopolitical tensions escalate further down line possibly disrupting supply chains altogether leaving island vulnerable amidst ongoing disputes regionally too!

Despite some pockets emerging supporting renewed interest around utilizing existing facilities again many locals remain skeptical fearing health repercussions linked directly between stored materials nearby affecting both human populations wildlife alike! Kuo reflects poignantly saying “I’ve fought tirelessly over three decades now…how many more do I truly have left?”