Taiwan to Ramp Up Gas Imports After Shuttering Last Nuclear Plant

Summary

Having shut down its last remaining nuclear plant Saturday, Taiwan is working to secure new imports of natural gas.The Maanshan nuclear plant closed following the expiration of its 40-year operating license, fulfilling a promise by the ruling Democratic Progressive Party of a “nuclear-free” Taiwan. Analysts say the move will make the country more reliant on imported fossil fuels and more exposed to spikes in the price of gas.Already Taiwan is struggling to generate enough electricity, leading to recurrent blackouts and brownouts in recent years. To service its booming semiconductor industry, Taiwan will add 5 gigawatts of gas power to the grid this year, the equivalent of five nuclear reactors. Liquefied natural gas imports are at a record high for this time of year, Bloomberg reports, and state-owned energy firm CPC is seeking additional deliveries of the fuel. As demand grows, Taiwan may need to spend around $2 billion more each year on imported gas by the end of this decade.Critics say the shift away from nuclear and toward natural gas will not only undermine Taiwan’s climate goals but also leave the island more vulnerable to a blockade by China. Taiwan has only 11 days of gas storage, making it highly dependent on imports. As part of a military exercise in April, China simulated a missile attack on a Taiwanese gas import terminal.ALSO ON YALE E360Why Taiwan and Its Tech Industry Are Facing an Energy Crisis