Energy Policy Summary of the Taiwan 2024 Presidential Candidates

To summarize the energy policies of the four Taiwanese presidential candidates in 2024, one of the candidates, Terry Gou, the founder of Foxconn, has outlined that over 90% of Taiwan's energy is imported and that a stable electricity supply is the foundation for industrial and overall economic development. However, frequent power outages in Taiwan have become a growing concern, potentially impacting major industries. Therefore, Gou believes that Taiwan must adjust its energy policy; otherwise, Taiwan will face significant risks in the future. He also emphasized that rashly abandoning any crucial energy source, including nuclear power, would be relatively risky. Gou's policy outlines are as follows:

1. Propose short, medium, and long-term energy policies, suggesting that nuclear power accounts for 25% of the total energy: Gou indicated that the short-term strategy involves the retirement of NPP-3 within three years and strives to restart the operations of NPP-1 and NPP-2 in the shortest possible time, thereby potentially increasing power supply by approximately 15%.

2. Implementing the "Harnessing Nuclear Power for Stability and Green Energy Cultivation" referendum: Gou suggests that Taiwan should emulate Japan's approach in reinstating nuclear power to secure sufficient time for nurturing the advancement of renewable energy and related technologies. In terms of new energy technology, this involves not only small-scale nuclear power plants but also Taiwan's existing advantageous resources, such as geothermal technology, along with the globally observed research on ocean energy generation.

William Lai, the presidential candidate of the Democratic Progressive Party (DPP), has outlined 5 major strategies for the net-zero transition, including the "Second Energy Transition," the "Drive a dual transformation in digital and green industries" the "Promotion of Sustainable Green Living," "Government Support for Net-zero Transition," and "Inclusive Transition for All," aiming to achieve Taiwan's 2050 net-zero transition goal:

1. Initiate the second phase of energy transition: The focus is on the advancement of various green energies, including hydrogen, biomass, and ocean energy. The objective is to achieve electricity decarbonization between 2026 and 2050, with a target of 50% natural gas, 30% coal, and 20% renewable energy by 2026. By 2050, the aim is to have renewable energy account for 60% to 70%, hydrogen energy for 9% to 12%, and gas for 20% to 27%.

2. Drive a dual transformation in digital and green industries: Setting up the Net Zero Innovation Technology Platform to cultivate the energy-saving sector, in conjunction with contemporary AI technology, expanding the deployment of energy information management systems, aligning with global energy efficiency benchmarks, and expanding energy-saving incentives. This encompasses technology-based energy storage, robust electrical grids, and the decarbonization of electricity from 2026 to 2050.

3. Foster sustainable green living, Including promoting zero-waste and low-carbon diets, encouraging service over purchasing, engaging in nationwide dialogues, and establishing a Climate Change Mutual Assistance Alliance. Environmentally, advocating for eco-friendly fashion with a focus on environmental friendliness; in future construction, promoting healthy, energy-efficient, and green buildings; and in transportation, supporting a low-carbon transportation network.

4. Government Support for Net-zero Transition: To assist industries in achieving low-carbon transformation, William Lai has proposed specific strategies for enterprises that cannot access relevant technologies and information. These strategies include establishing an international information advisory team and various industry technical service teams to provide industry technical services, guide enterprises in conducting carbon inventories, and offer consultations on carbon pricing and net-zero technologies in multiple fields.

5. Ensure a just transition for all: Improve dispute resolution mechanisms for net-zero transition and turn international challenges into opportunities for Taiwan's transformation and growth.

Regarding energy policy, KMT's presidential candidate, Yu-Ih Hou, emphasizes the objective of ensuring an "Uninterrupted power supply for all." Hou proposes the inclusion of nuclear energy as part of the energy options and introduces five central energy policies: "Prioritize green sustainability," "Utilize nuclear energy to decrease coal reliance," "Transition towards coal-free alternatives," "Transition with natural gas," and "Stress on energy efficiency." According to Yu-Ih Hou, one of the contributing factors to Taiwan's economic takeoff in the past was the availability of stable base-load electricity. Nuclear energy, as one of the key sources of base-load power, played a crucial role, reaching a peak contribution of 50% at one point. However, due to the promotion of a nuclear-free homeland, the proportion of nuclear energy now accounts for less than 10%. An outline of his policy platform is as follows:

1. Prioritize green sustainability: The focus is on the steady development of renewable energy to serve as the primary energy pillar for Taiwan's future, gradually replacing high-carbon-emission power generation.

2. Utilize nuclear energy to decrease coal reliance: Value the use of nuclear energy to reduce carbon and air pollution.

3. Transition towards coal-free alternatives: Considering energy security and stable electricity prices, initially maintain stable coal-fired power generation, gradually reducing high-carbon-emission coal-fired power, with the goal of reducing the proportion of coal to 14% by 2030 and completely phasing out coal-fired power by 2040, achieving the goal of a coal-free Taiwan by 2040.

4. Transition with natural gas: Based on ensuring national security and uninterrupted power supply, the proportion of natural gas should be kept at a safe level below half. In the future, some natural gas units will be gradually converted to backup after the installation of CO2 treatment equipment.

5. Stress on energy efficiency: Expand investment in resources for energy conservation, energy storage, and smart grids to reduce the growth of electricity demand and increase the efficiency of power dispatch, ensuring sufficient and stable power supply.

Wen-Je Ko, the presidential candidate for the Taiwan People's Party (TPP), has emphasized the critical need for Taiwan to increase the proportion of renewable energy significantly. He envisions making the "Zero Carbon Industry" a central aspect of the "Taiwan 10-Year Vision Project." He also stresses the necessity of achieving a fivefold increase in electric vehicles and charging stations within ten years. Furthermore, he emphasizes the importance of a smart national power grid, aiming to establish cleanliness, stability, and sustainability. Wen-Je Ko emphasizes that diversity and stability in energy allocation are key factors, with nuclear energy being a crucial base-load power source. Therefore, he advocates extending the operation of NPP-2 and NPP-3 while promptly conducting an assessment of NPP-4. Wen-Je Ko further points out that NPP-1 has been decommissioned for many years, and obtaining many components has become challenging. Extending the operation of NPP-1 would be a slow response and may only lead to social unrest.An overview of his energy policy is outlined as follows:

1. Clean Energy: Develop green energy from renewable sources and actively promote rooftop solar power in urban areas with lower land requirements for power generation. Increase public awareness of rooftop solar energy and encourage participation in electricity generation.

2. Stable Supply: Update distribution equipment, establish a smart grid, and create a diversified power system combining centralized and decentralized approaches. Implement carbon pricing to align with international decarbonization trends.

3. Rational Decision-Making: Review and assess the extension of NPP-2 and NPP-3, make timely decisions regarding the future of NPP-4, and manage nuclear waste appropriately, serving as a transitional tool for renewable energy development.

4. Remove Inappropriate Subsidies and Implement Carbon Tax to reflect the true cost of energy.

News Compilation: EnergyOMNI
Reference: cna｜Business Weekly