Taiwan Ends Nuclear Power as Energy Security, Costs and Climate Goals Collide

The Last Reactor Closes, but the Debate Continues

On May 17, 2025, Taiwan disconnected its last operating nuclear reactor at the Maanshan Nuclear Power Plant, ending nearly five decades of nuclear electricity generation. A month later, the island faces a difficult balancing act: keeping electricity reliable and affordable, meeting climate targets and reducing exposure to disruptions in imported fuel.

The shutdown completed the government's longstanding commitment to a nuclear-free homeland. Yet the political argument over nuclear energy remains open. Lawmakers have created a route toward extending reactor licences, opposition parties want another referendum, and government leaders have expressed conditional interest in new nuclear technologies.

According to the Ministry of Economic Affairs, fossil fuels, mainly coal and liquefied natural gas (LNG), now supply about 84% of Taiwan's electricity. Renewables, chiefly solar and wind, contribute just over 12%. Nuclear generation has fallen to zero.

Those figures matter far beyond power stations. Taiwan's semiconductor industry depends on a steady electricity supply, while the island imports 97% of its energy. Replacing nuclear generation with more imported gas ties electricity costs and security more closely to international fuel markets and maritime shipping.

The government says new generating units and stronger electricity networks will keep supply stable through at least 2032. Critics warn that the transition could increase costs and emissions while leaving Taiwan more exposed to a blockade. Supporters argue that renewable investment, lower coal use and better pollution controls can deliver a cleaner system without nuclear accident risks.

How Taiwan Reached the Shutdown

Taiwan's nuclear dispute began long before the final reactor stopped. Nuclear plants were built in the 1970s and 1980s under martial law, with little public consultation. Opposition later became bound up with the island's democratization and environmental movements.

The 1986 Chernobyl disaster and the 2011 Fukushima accident in neighboring Japan intensified concerns about operating nuclear facilities in a densely populated place with seismic activity. For opponents, the possible consequences of an accident remained central to the debate.

Orchid Island became another lasting focus of opposition. In 1996, indigenous residents blocked a freighter carrying nuclear waste, a dramatic confrontation that helped shape public opinion and government policy. The island's Tao people continue to demand the removal of waste barrels, citing risks to health and the environment.

The Democratic Progressive Party (DPP), which came to power in 2016, made a nuclear-free homeland a central policy goal. The government pledged to decommission every nuclear plant by 2025, expand wind and solar generation and reduce reliance on coal. That policy was written into law and backed by environmental groups, while drawing criticism from industry leaders and energy experts.

The main events show why the May shutdown ended generation without settling the argument:

• 1970s and 1980s: Taiwan built nuclear power plants under martial law, with limited public consultation.
• 1986: The Chernobyl disaster strengthened concerns about nuclear safety.
• 1996: Indigenous residents on Orchid Island blocked a ship carrying nuclear waste.
• 2011: Japan's Fukushima accident renewed fears about nuclear risks.
• 2016: The DPP took power with a commitment to end nuclear generation by 2025.
• 2018: A referendum rejected the nuclear phaseout, but the government continued its policy.
• 2021: Another vote upheld the closure of one plant by a narrow margin.
• May 17, 2025: Taiwan disconnected its final operating reactor at Maanshan.

What Will Replace Nuclear Electricity?

Taipower, the Taiwan Power Company, is expanding power stations that burn gas and investing in renewable projects to replace lost nuclear capacity. Premier Cho Jung-tai has pointed to new generating units at Hsinta, Sun Ba and Datan as sources of replacement electricity.

The government projects that reserve margins will remain above 10%, even during peak demand, and says electricity supply will remain stable through at least 2032. A reserve margin measures the generating capacity available above expected demand, providing a cushion when consumption rises or equipment is unavailable.

Cho has also said the electricity grid is being strengthened to support growth in advanced technology industries and artificial intelligence data centers. The grid is the network that moves power from generators to homes and businesses. Adding generation and ensuring that electricity can reach the places using it are both part of maintaining reliable supply.

Taiwan's changing electricity mix reflects a longer decline in nuclear generation. Fossil fuels have taken much of its place, with renewables contributing a smaller but growing share. The immediate transition therefore depends heavily on gas, even as the government presents wind and solar as central to its longer plans.

The renewable targets are 20% of electricity generation by 2027 and 30% by 2030. The 2030 goal is roughly two and a half times the current share of just over 12%, showing how much additional renewable generation must be brought into service.

Why Electricity Costs Matter to the Chip Industry

TSMC alone uses nearly 10% of Taiwan's electricity. That makes the island's leading semiconductor company a major part of the energy debate, alongside other manufacturers and the growing demand from artificial intelligence and chip production.

Industry analysts warn that removing nuclear generation will raise annual power generation costs by NT$100 billion, about US$3.2 billion. Replacing that output with LNG exposes Taiwan to changes in global gas prices as well as the risk that supplies will be interrupted.

Taipower has already absorbed higher fuel costs to keep electricity prices stable. By the end of 2024, its accumulated losses exceeded NT$420 billion, about US$14 billion. That financial strain is likely to increase pressure for future electricity rate rises affecting businesses and households.

The annual cost estimate and Taipower's accumulated losses describe different financial pressures. The first concerns the expected yearly cost of replacing nuclear generation. The second is the company's total losses built up over time while it has absorbed higher fuel expenses.

For manufacturers, reliable electricity at an affordable price is a basic operating requirement. Continued cost increases or unreliable supply could encourage global technology companies to move operations to places offering more secure and greener electricity.

Such a shift would affect Taiwan's economy and what is often called its silicon shield: the strategic value that comes from the world's reliance on its semiconductor industry. The concern is that weakening the conditions supporting chip production could also weaken that position in global supply chains.

Imported Fuel Creates a Security Problem

Taiwan imports 97% of its energy, including all its LNG, coal and oil. Surrounded by sea and within 160 kilometers of China, the island depends on shipping routes that could be disrupted by a military blockade or conflict.

LNG is natural gas cooled into liquid form for transport by ship. Taiwan currently has about 11 days of gas storage. With gas playing a larger role in electricity generation, a prolonged interruption to deliveries would put pressure on the fuel supply supporting the grid.

Supporters of nuclear power argue that fuel stored at nuclear sites provided a measure of energy independence and resilience. Nuclear generation combined that storage advantage with low carbon emissions, while LNG deliveries could be disrupted within days if shipping lanes were blocked.

Some analysts point to Ukraine, where nuclear plants have helped maintain electricity supplies despite attacks on other infrastructure. They also argue that China would be reluctant to attack Taiwanese nuclear facilities because radioactive fallout could affect its own population and economy.

Those arguments put security alongside the more familiar debate about cost and safety. Without nuclear generation, critics say, Taiwan's electricity system is more exposed to physical disruption and economic shocks affecting imported fossil fuels.

The government's plans for additional gas generation address the need for replacement power. The security debate centers on a different concern: whether the fuel needed to run those plants can continue arriving during a crisis.

Cleaner Air and Lower Carbon Are Different Goals

Taiwan's environmental debate involves several problems at once: radioactive waste, the risk of nuclear accidents, harmful air pollution and greenhouse gas emissions. Different electricity sources affect each of these problems differently.

Nuclear power produces almost no greenhouse gas emissions during generation, but leaves waste that remains hazardous for a long time. Orchid Island's continuing dispute over stored waste shows why the end of nuclear generation does not end the responsibilities associated with it.

Critics of the phaseout warn that greater reliance on coal and gas will increase carbon emissions. That would make it harder to meet Taiwan's targets of a 38% emissions reduction by 2035 and net zero by 2050. Net zero means balancing remaining greenhouse gas emissions with removals.

Supporters of the transition point to improving air quality. Average PM2.5 concentrations fell from 20 to 12.8 micrograms per cubic meter between 2016 and 2024, a decline of 36%. PM2.5 refers to fine particles in the air small enough to be breathed deep into the lungs.

The improvement has been attributed to stricter rules, reduced coal use and the expansion of renewables. Lower particle pollution brings a different environmental benefit from cutting the greenhouse gases that drive climate change, so both measures matter when judging the transition.

Supporters also argue that nuclear power and renewables compete for policy attention and investment. In their view, committing firmly to green energy will help renewable deployment move faster. Opponents remain concerned about the amount of fossil fuel generation required while that expansion takes place.

Can the Nuclear Decision Be Reopened?

Public opinion has shifted even as the DPP has maintained its commitment to a nuclear-free future. Polls show a majority now support extending the lives of existing nuclear plants, particularly amid rising energy costs and concern about climate change.

The earlier referendums illustrate how contested the issue remains. Voters rejected the nuclear phaseout in 2018, but the government pressed ahead. In 2021, a vote upheld the closure of one plant, although the margin was narrow.

Following the Maanshan shutdown, opposition parties have pushed for another referendum on restarting nuclear operations. The legislature recently amended the Nuclear Reactor Facilities Regulation Act to allow licence extensions of up to 20 years, creating a possible route to restarting reactors if safety and waste issues can be resolved.

No restart date or date for another referendum had been given as of June 19, 2025. The immediate situation remains a shutdown of nuclear generation, alongside a legal and political debate about whether it should return.

Premier Cho and Economic Minister Kuo have expressed openness to new nuclear technologies, provided there is national agreement and robust safety measures. That position leaves room for discussion while keeping public consent and safety central to any decision.

For indigenous communities and environmental campaigners, unresolved waste storage and accident risks remain powerful objections. For supporters of nuclear power, electricity security and economic stability carry greater weight. The government must balance those competing priorities while the energy system is already changing.

Wind, Solar and Storage Face Practical Limits

Taiwan is investing in offshore wind, solar power and energy storage to reach its renewable targets. The Shalun Green Energy Technology Demonstration Site in Tainan includes model homes with near zero and zero emissions, showing the potential for more sustainable living.

Expanding those ideas across the electricity system presents practical challenges. Taiwan's mountainous terrain and limited available land make the development of large solar projects difficult. Offshore wind developments face delays linked to requirements to use local products and services, as well as geopolitical risks.

Wind and solar output also vary with weather and daylight. The grid must accommodate that changing output while meeting rising demand from industry and data centers. Strengthening the network is therefore part of the renewable expansion, alongside building more generators.

Battery storage and demand response programs are expanding. Batteries store electricity for later use, while demand response encourages users to shift or reduce consumption when the system is under pressure. Scaling these measures to meet peak electricity needs remains complex.

Some experts favor a more diverse approach that includes small modular nuclear reactors and greater private investment in clean energy. Others focus on public engagement and transparent decisions as necessary steps toward building trust and agreement.

The next stated renewable milestones are 2027 and 2030. Meeting them while maintaining reliable electricity requires progress across generation, storage and the grid, rather than relying on a single technology.

A Transition With Competing Priorities

Taiwan's experience brings several energy choices into the same debate. Ending nuclear generation addresses the government's commitment on nuclear safety and waste, while expanding gas helps replace lost output. Building renewables supports climate goals, but requires more investment and changes to the electricity network.

The island's circumstances make those choices especially demanding. Its economy includes major consumers of electricity, its energy supply depends heavily on imports, and tensions with China give fuel delivery routes strategic importance.

Stable supply through 2032 is the government's stated assurance. Lower emissions by 2035 and net zero by 2050 remain its climate objectives. Electricity prices, Taipower's finances and the pace of renewable construction will help determine how those commitments affect households and businesses.

Taiwan's transition also offers a case for other countries weighing safety, security, affordability and environmental goals. The final reactor's closure has settled the immediate question of whether Taiwan generates nuclear electricity. Decisions about replacement power, waste, costs and possible future nuclear use remain active political issues.

Key Points

• Taiwan disconnected its last operating nuclear reactor at Maanshan on May 17, 2025, ending nearly five decades of nuclear generation.
• Fossil fuels supply about 84% of electricity, while renewables contribute just over 12%.
• The government targets 20% renewable electricity by 2027 and 30% by 2030, and says supply will remain stable through at least 2032.
• Industry analysts estimate an additional NT$100 billion in annual generation costs. Taipower's accumulated losses exceeded NT$420 billion at the end of 2024.
• Taiwan imports 97% of its energy and has about 11 days of gas storage, making shipping disruptions a major concern.
• Average PM2.5 pollution fell from 20 to 12.8 micrograms per cubic meter between 2016 and 2024, while critics warn greater fossil fuel use could increase carbon emissions.
• Lawmakers have allowed reactor licence extensions of up to 20 years, but safety, waste and public agreement remain central to any restart.
• Wind, solar, storage and grid investment must expand while Taiwan meets growing demand from semiconductor production and artificial intelligence.