Taiwan’s energy system supports one of the world’s most important manufacturing economies, but it operates with very few domestic fuel resources. The island imports more than 95% of the energy it uses, while its electricity grid has no physical connection to another national system. This creates an unusual balance: Taiwan must provide stable power to semiconductor factories, petrochemical sites, transport networks and more than 23 million people while depending on ships for almost all of its oil, coal and natural gas. Taiwan is trying to reduce coal, expand liquefied natural gas and build more renewable energy. At the same time, the end of nuclear generation in 2025 has reopened a difficult debate about security, cost, emissions and grid reliability.[1]
Taiwan’s Energy Problem Is Also a National Security Problem
Energy security has a wider meaning in Taiwan than it does in many other advanced economies. Taiwan cannot rely on cross-border electricity lines or land-based pipelines when domestic supply is tight. Oil tankers, LNG carriers and coal ships must reach its ports through regional sea lanes. Any serious interruption to shipping could therefore affect electricity generation, transport, industry and household energy use.
This dependence is especially important because Taiwan’s economy is built around industries that need reliable power. Semiconductor fabrication plants require large and continuous supplies of electricity, cooling and high-quality water. Electronics, steel, chemicals and other export industries also depend on stable energy. The Ministry of Economic Affairs expects electricity demand to grow by an average of about 1.7% per year from 2025 to 2034, with semiconductor expansion and artificial intelligence among the forces included in that forecast.[2]
Taiwan’s energy strategy is therefore not only a climate policy. It is also an industrial and security policy. The government must decide how much imported fuel to store, which suppliers to use, where to place receiving terminals, and how quickly the grid can recover after an accident, earthquake or typhoon.
Renewable energy can reduce fuel imports, but it also requires new transmission lines, storage and flexible generation. Every major energy choice involves a trade-off between speed, cost, local opposition and resilience.
A Power Mix Still Dominated by Natural Gas and Coal
Taiwan generated about 286 terawatt-hours of electricity in 2024. Natural gas supplied roughly 42% to 43% of generation, while coal provided about 39% to 40%. Renewables reached around 12% under official Taiwanese reporting, and nuclear power provided about 4% before the final reactor closed the following year. The exact shares vary slightly between statistical systems, but the overall picture is clear: fossil fuels still produce more than four-fifths of Taiwan’s electricity.[3]
The direction of change is also clear. Natural gas generation rose strongly in 2024, coal generation declined, and non-hydropower renewable generation grew by about 30%. Solar added around 1.9 gigawatts of capacity during the year, while wind added about 1.2 gigawatts. Taiwan’s installed generation capacity reached approximately 66.7 gigawatts, although solar and wind facilities do not produce at full output at all times.[3]
Taiwan’s current plan aims for a 2030 generation mix of 50% natural gas, 30% renewables and 20% coal. This would make the system less dependent on coal, but it would still leave Taiwan heavily dependent on imported fossil fuel. It also assumes that renewable projects, LNG terminals, gas-fired plants, transmission upgrades and storage can all be completed at the required pace.
Coal Is Declining, but It Still Supports the Industrial System
Taiwan has no meaningful domestic coal supply and imports all the coal it consumes. Around 76% of coal use in 2024 went to electricity generation, while coke ovens for iron and steel production accounted for another 13%. Coal consumption declined for a third consecutive year, but it still reached about 63 million short tons.[4]
Most coal arrives from suppliers in the Asia-Pacific region. Australia provided about 49% of Taiwan’s coal imports in 2025, and Indonesia provided about 30%. This concentration creates supply risk, although coal is easier to stockpile than LNG and can be purchased from a wider range of exporters.
The largest symbol of Taiwan’s coal system is the Taichung Power Plant on the west coast. With about 5.5 gigawatts of capacity, it is one of the largest coal power stations in the world. Current plans call for its coal units to be replaced in stages by gas-fired capacity, with coal use ending by 2034.[4] The transition matters for air quality in central Taiwan as well as for national carbon emissions.
Coal will not disappear quickly. It provides steady generation, existing plants are already connected to the grid, and the steel industry still needs metallurgical coal. During periods of high demand or limited gas supply, coal capacity also acts as a security buffer. Taiwan is therefore reducing coal through staged replacement rather than an immediate shutdown.
LNG Has Become Taiwan’s Bridge Fuel and Its Main Vulnerability
Natural gas is the central fuel in Taiwan’s present energy transition. It produces less carbon dioxide and local air pollution than coal when burned, and gas turbines can adjust output more quickly as solar generation falls in the evening. These qualities make gas useful in a grid with growing amounts of variable renewable power.
Almost all of Taiwan’s gas arrives as liquefied natural gas. Domestic production covered less than half of 1% of national consumption in 2024. Gas use reached about 1,021 billion cubic feet that year, and 78% was used for power generation. LNG imports then rose by 10% in 2025 to more than 1.1 trillion cubic feet. Australia supplied 34%, Qatar 33% and the United States 10%.[5]
Taiwan had three operating LNG receiving terminals in 2025: Yung-An, Taichung and a new terminal in Taoyuan. Together, they provided regasification capacity of just over one trillion cubic feet per year, with further expansion under development.[5] New gas power projects and terminal capacity are intended to replace coal and nuclear generation while meeting new electricity demand.
The weakness is storage. In 2026, government estimates placed available natural gas stocks at only about 10 to 11 days of use. Taiwan currently requires at least 11 days of safety stock and plans to raise the minimum to 14 days in 2027.[6]
LNG is difficult and expensive to store in very large quantities, so regular deliveries remain essential. A strategy that increases the gas share of electricity can lower emissions compared with coal, but it also increases exposure to shipping disruption, global LNG prices and terminal outages.
Oil Connects Taiwan to Transport, Refining and Petrochemicals
Oil plays a smaller role in electricity generation than coal or gas, but it remains a major part of Taiwan’s total energy economy. It powers cars, trucks, aircraft and ships, while petroleum products also provide feedstock for plastics, chemicals and other industrial materials.
Taiwan imported about 794,000 barrels per day of crude oil and condensate in 2025. Saudi Arabia supplied 33%, the United States 27%, and Kuwait 13%, with additional volumes from the United Arab Emirates, Oman and Qatar. Crude entered mainly through Mai Liao, Kaohsiung and Shalung.[7]
Taiwan also has a large refining sector. Four refineries have combined nameplate capacity of about 1.41 million barrels per day. This capacity allows the island to process imported crude and export refined fuels to other Asian and Pacific markets. Petroleum product exports reached roughly 313,000 barrels per day in 2025, led by diesel and gasoline components.[7]
The petrochemical economy creates another form of dependence. Naphtha accounted for 60% of Taiwan’s petroleum product imports in 2025, and almost half of that imported naphtha came from Russia. This shows why oil security cannot be measured only by gasoline stocks. Refining, chemicals, manufacturing and export earnings all rely on continuing access to specific petroleum products.
An Island Grid Must Carry the Weight of the Semiconductor Economy
Taiwan’s electricity system is isolated. It cannot import emergency power from Japan, the Philippines or mainland Asia, so domestic generation and reserves must cover demand at all times. Most power is produced and delivered through a system led by the state-owned Taiwan Power Company, commonly known as Taipower.
The geography of demand creates additional pressure. Large power plants and renewable sites are concentrated in coastal and central or southern areas, while major cities and industrial parks require strong transmission connections. Solar output is highest during daylight hours, but demand can remain high after sunset. Gas plants, hydropower, pumped storage, batteries and demand-response programs must help cover this evening change.
Several major outages have shown the risks of concentrated infrastructure and operational failure. In response, Taipower launched a ten-year grid resilience plan valued at NT$564.5 billion. The program is designed to create more regional flexibility, add substations and switching equipment, strengthen transmission routes, improve digital monitoring and connect more renewable power. Taipower also plans dedicated grid capacity for industrial and science parks, where even short interruptions can be costly.[8]
Storage is becoming part of this system. Taipower completed four grid-scale battery projects totaling 160 megawatts by 2024, while private storage and other flexible resources participate through an electricity trading platform. Pumped-storage hydropower remains important because it can absorb electricity during low-demand periods and return power during peaks.
Grid resilience is not only about preventing national blackouts. Taiwan is exposed to earthquakes, typhoons, landslides, salt corrosion and extreme rainfall. A more distributed grid can limit the area affected by a failure and restore service faster. Cybersecurity is also important because a more digital electricity system creates new points that must be protected.
Nuclear Power Has Returned to the Center of the Debate
Nuclear energy supplied an important share of Taiwan’s electricity for about four decades. Six commercial reactors operated at Chinshan, Kuosheng and Maanshan, while two additional reactors at Lungmen were left incomplete. The phaseout accelerated as operating licences expired and the government continued a policy of closing nuclear generation by 2025.
Maanshan Unit 2, Taiwan’s last operating reactor, shut down in May 2025. This left Taiwan with no operating nuclear power for the first time since the late 1970s. The closure removed a source of low-carbon, domestically stored generation at the same time that Taiwan was expanding its use of imported LNG.[9]
The issue did not end with the shutdown. Taiwan’s legislature changed the law in 2025 to allow reactor operating licences to be extended from 40 to 60 years. An August 2025 referendum produced more votes in favor of restarting Maanshan than against it, but it did not meet the legal turnout threshold. In March 2026, Taipower applied to begin restart-related reviews for Maanshan and Kuosheng. No reactor had returned to operation at that point.[9]
A restart would require safety inspections, regulatory approval, engineering work and solutions for spent nuclear fuel. Taiwan’s earthquake risk, waste storage problems and public divisions remain major concerns. Supporters argue that nuclear power could reduce LNG dependence and carbon emissions while providing steady electricity. Opponents focus on safety, waste and the long history of conflict around nuclear sites.
Nuclear power is therefore no longer simply a closed chapter. It is an active question in Taiwan’s search for energy security.
Offshore Wind and Solar Must Work Around Taiwan’s Geography
Taiwan has limited land, steep mountains, dense cities and a crowded western coastal plain. These conditions make renewable development possible but politically and technically difficult. Large solar parks compete with farming, housing, industry and environmental protection. Wind projects must share coastal waters with fishing, shipping, military activity and marine ecosystems.
Solar power has expanded fastest because systems can be installed on factories, homes, reservoirs, fishponds and other existing spaces. Taiwan’s official net-zero roadmap aims for 30 gigawatts of solar capacity by 2030. Reaching that level will require more rooftop development, careful use of agricultural and aquaculture land, and stronger local support. Typhoons, heavy rain and salt exposure also increase construction and maintenance demands.[10]
Offshore wind is Taiwan’s largest domestic energy opportunity. The Taiwan Strait has strong seasonal winds and areas of relatively shallow water, especially off Changhua and Yunlin. Offshore capacity grew to about 4 gigawatts by 2025. The official long-term roadmap calls for 13.1 gigawatts by 2030 and a much larger role by 2050, including floating turbines in deeper water.[10]
Progress has not been simple. Offshore wind developers face higher financing costs, supply-chain problems, grid-connection schedules and difficult marine construction. Later projects will move into deeper water, where foundations and cables become more expensive. Even so, offshore wind can provide large volumes of domestic electricity without using scarce land, and its output is often stronger outside the main solar hours.
Hydropower has a smaller but valuable role. Taiwan’s mountains and steep rivers support conventional hydro and pumped storage, although limited sites, environmental concerns and changing rainfall restrict large expansion.
Geothermal power is also receiving more attention because Taiwan sits in an active tectonic region. It could provide steady renewable generation, but exploration risk and project cost remain barriers.
Taiwan’s Next Energy System Must Be More Than a Fuel Switch
Taiwan’s energy transition is often described as a move from coal and nuclear power toward gas and renewables. That description is accurate but incomplete. Replacing coal with imported LNG may reduce emissions and air pollution, yet it does not solve the problem of maritime dependence. Building solar and offshore wind can improve energy autonomy, but only if transmission, storage and flexible demand grow at the same time.
The future system will also have to serve rising industrial demand without weakening Taiwan’s climate goals. The government has committed to net-zero emissions by 2050 and is targeting 30% renewable electricity by 2030. Semiconductor companies and international customers are also seeking more low-carbon power. This creates pressure to expand clean generation faster than overall electricity demand grows.[2][10]
Taiwan’s central energy question is therefore not whether one technology should win. It is whether the island can create enough diversity to survive disruption.
Coal offers stockpiled security but high emissions. LNG offers flexibility but limited storage. Oil supports transport and industry but remains imported. Nuclear could provide firm low-carbon power but faces political, safety and waste barriers. Renewables reduce fuel dependence but need land, sea space, storage and grid investment.
Taiwan’s strongest energy system will be the one that manages these weaknesses together rather than treating any single source as a complete answer.