Taiwan is grappling with a significant energy crisis that threatens its economic stability and national security. The island’s energy demands are outpacing its grid capacity, and its heavy reliance on energy imports makes it particularly vulnerable to potential military blockades from neighboring China. Without urgent action to bolster its energy supply, Taiwan could find it increasingly difficult to resist China’s agenda to annex the island under its One China policy.
The Taiwanese energy grid serves a population of approximately 23 million, comparable to that of Australia, despite operating on a mere 200th of its land mass. It not only supports this dense population but also sustains one of the world’s most advanced and energy-intensive technology sectors. According to the United States International Trade Commission, Taiwan accounts for about 18 percent of the global semiconductor manufacturing capacity and a staggering 92 percent of the world’s most advanced computer chip production.
In an analysis published by Yale360 in September 2022, the multifaceted energy crisis facing Taiwan was highlighted: the nation is heavily dependent on imported fossil fuels, has ambitious clean energy targets it is failing to meet, and struggles to keep pace with growing demand. Critics argue that addressing these issues is becoming increasingly urgent, especially as China intensifies military activities in the waters surrounding Taiwan.
James Yifan Chen, an expert in international relations, stated, “Taiwan is more vulnerable than Ukraine.” The Taiwanese government acknowledges that its energy supply is critical for its survival. National leaders are working to enhance energy independence through various measures, including promoting renewable energy, diversifying fossil fuel suppliers, increasing fuel storage capacities, and improving the power grid’s security. According to the French Institute of International Relations (IFRI), however, the feasibility of these plans remains uncertain, raising concerns about Taiwan’s ability to meet its significant energy needs.
In a controversial move, Taiwan recently shut down its last operating nuclear power plant in May 2023, a commitment made by the ruling Democratic Progressive Party (DPP) to create a “nuclear-free homeland.” Previously, nuclear energy accounted for half of Taiwan’s domestic energy supply. This decision, driven by fears following the Fukushima disaster in 2011 and local opposition to nuclear waste disposal, has left Taiwan with a critical gap in its energy security, complicating its national security situation.
Despite these challenges, some industry insiders believe that Taiwan could be on the brink of a breakthrough in energy production. With no nuclear energy and few fossil fuel reserves, the island may need to look deep underground for solutions. Taiwan is located on the Pacific Rim, sandwiched between two tectonic plates, which endows it with rich geothermal resources. As noted in a recent article from Foreign Policy, these geothermal resources have remained largely untapped but could soon become a focal point in Taiwan’s energy strategy.
Harnessing geothermal energy offers a promising solution, as it is carbon-free and provides a reliable baseload power supply. Taiwanese President Lai Ching-te has actively advocated for geothermal energy development. The state oil company has begun repurposing existing wells for geothermal exploration, indicating a potential shift in energy policy.
Nevertheless, several challenges remain. The geothermal industry requires specialized engineers, and Taiwan currently faces a staffing shortfall in this area. Additionally, developing geothermal capacity will necessitate extensive research and development, a luxury that Taiwan may not have given its urgent energy needs.
The importance of Taiwan in global technology supply chains means that a failure of its energy system could have far-reaching implications. Interestingly, this vulnerability may serve as a catalyst for change, as major corporations like Google are now investing in the geothermal energy sector in Taiwan to safeguard their interests. This financial backing could facilitate a geothermal revolution that transforms Taiwan’s energy landscape.
As Taiwan navigates this critical juncture, the focus on geothermal energy development could provide not just a solution to its energy woes but also a step towards greater energy independence and security.
