Taiwan is to become East Asia’s first non-nuclear nation in May next year, if the No. 2 reactor of the Ma-anshan Nuclear Power Plant in Pingtung County’s Hengchun Township (恆春) is decommissioned as planned.
Energy security goes beyond sound industrial policy and environmental protection; it is one of the pillars of national defense.
Taiwan, an island nation with few natural energy sources, relies on imported fossil fuels for more than 97 percent of its energy needs. Nuclear power is a clean, relatively cheap energy source that can be produced locally, something that Taiwan would need should China’s People’s Liberation Army (PLA) set up a blockade around the nation, which it is clearly considering with its “joint sword” military drills.
Shutting up shop on nuclear power generation is a brave — hopefully not rash — step in the plans for energy transition. Coupled with the government’s goal of zero carbon emissions by 2050, renewable energy will soon be the only game in town.
Renewable energy could theoretically be outsourced, for example by building green energy plants in the Philippines, as was mooted by Minister of Economic Affairs J.W. Kuo (郭智輝). This approach, while innovative, has the same national security risk of leaving the nation’s energy supply vulnerable to PLA action.
The transition to green energy is necessary not only to achieve the zero carbon goal; it is also necessary if Taiwan is going to attract more foreign investment. Many foreign companies are required by their governments, shareholders or ethical values to reduce the amount of carbon emissions in their operations, and Taiwan providing a plentiful, stable source of renewable energy supply would attract this investment. Local companies also face increasing requests from customers to reduce the carbon emission footprints in their supply chains and manufacturing processes.
National security concerns, making Taiwan more competitive to foreign investment, achieving zero carbon by 2050 and allowing the nation to transform into a “nuclear free” homeland are all reasons to promote the development and take-up of local, renewable energy sources such as wind or solar power.
According to the Ministry of Economic Affairs, Taiwan’s offshore wind capacity was 2.25 gigawatts last year, with a target of 5.7 gigawatts for next year and 8 gigawatts by 2027.
However, there are headwinds. One is a local content ratio requirement of at least 60 percent for offshore wind power projects, which placed limitations on investment from international developers and led to an EU complaint on July 26 that Taiwan’s policy was inconsistent with its WTO commitments. Another is the regulation that new offshore wind projects must first be given the go-ahead by local fisheries’ associations, giving the associations too much power over decisions that could slow down or kill off projects. Other regulations that are turning away international providers include penalizing offshore wind farm developers if any force majeure factors lead to construction delays.
The ministry has been negotiating with the EU under the WTO framework and has said that it is working toward lifting the localization restrictions and local content requirements. It also needs to address the fisheries issue, among others.
The government could also look to other amendments, such as the extension of tax breaks to green energy equipment and storage in Article 10 of the Statute for Industrial Innovation (產業創新條例).
Time is of the essence, and the urgency given to energy security is indicative not only of the government’s commitment to economic development and environmental protection, but also to national defense.
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