Taiwan Moves Boldly Forward With New Nuclear Plan

American and Taiwanese flags waving in the sky.

Taiwan has passed a landmark nuclear power bill that will allow atomic plants to extend their operational licenses indefinitely, reversing its previous commitment to phase out nuclear energy as the island faces mounting energy security challenges.

Quick Takes

Taiwan’s legislature has amended its nuclear power law to permit plants to renew their operational licenses for 20-year periods, effectively eliminating the previous 40-year cap
The policy reversal comes amid increasing energy demands from Taiwan’s crucial semiconductor industry and growing concern about reliance on imported fossil fuels
Despite the new law, Taiwan’s last active nuclear reactor will still shut down on May 17 as scheduled
Safety reviews for potentially restarting decommissioned reactors would take at least 3.5 years, according to state-owned power company Taipower
The move aligns with a global trend of renewed interest in nuclear power as a low-carbon energy solution

Taiwan’s Nuclear Policy Shift

Taiwan’s legislature has passed significant revisions to its nuclear power regulations, opening the door for extended operations at atomic power plants. This represents a major policy pivot for the island nation, which had previously committed to phasing out nuclear energy entirely. The new legislation comes in response to growing energy security concerns, increased power demands from Taiwan’s critical semiconductor industry, and geopolitical tensions that threaten its energy imports. Taiwan faces the unique challenge of securing reliable energy supplies while being cut off from many international energy markets due to pressure from mainland China.

The legislative changes permit nuclear plant operators to apply for license renewals either before or after their current licenses expire. This creates a pathway for potentially restarting already decommissioned nuclear facilities or extending the lifespan of the soon-to-be-shuttered last active reactor. Taiwan’s power consumption is projected to increase by 13% by the end of this decade, driven largely by the expansion of its semiconductor manufacturing sector and growing artificial intelligence applications, making reliable baseload power increasingly critical for the island’s economic security.

Energy Security Concerns

Taiwan faces acute energy security challenges as an island economy heavily dependent on imported fossil fuels. The nation currently relies on liquefied natural gas (LNG) imports that are vulnerable to supply disruptions and geopolitical tensions, particularly with China. Nuclear power has historically provided stable baseload electricity, accounting for a significant portion of Taiwan’s energy mix. The decision to potentially restart nuclear operations reflects growing recognition that renewable energy sources alone may not be sufficient to meet the island’s escalating power needs, especially given land constraints for solar and wind installations.

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The semiconductor industry, dominated by companies like Taiwan Semiconductor Manufacturing Company (TSMC), requires enormous amounts of stable, high-quality electricity. As these companies expand production and adopt more energy-intensive manufacturing processes for advanced chips, power demands continue to climb. Any power disruptions could have catastrophic effects not only on Taiwan’s economy but also on global supply chains that depend on Taiwanese chips, creating a strong incentive for policymakers to secure reliable energy sources regardless of previous commitments to phase out nuclear power.

Implementation Timeline and Safety Considerations

Despite the legislative change, Taiwan’s transition back to nuclear power will not be immediate. The nation’s last operational nuclear reactor at the Maanshan Nuclear Power Plant is still scheduled to shut down on May 17, 2025, as originally planned. Restarting previously decommissioned reactors would require extensive safety reviews, with government officials estimating the process would take at least 3.5 years. This timeline reflects the technical challenges involved in recommissioning nuclear facilities that have already begun the decommissioning process, as well as the need to address public safety concerns.

Taiwan’s policy shift aligns with a global trend of renewed interest in nuclear energy as countries grapple with the dual challenges of reducing carbon emissions and ensuring energy security. Nations from Japan to the United States are reconsidering nuclear power’s role in their energy portfolios, especially as artificial intelligence and data centers drive up electricity demand worldwide. For Taiwan, the decision reflects pragmatic recognition of its unique vulnerability as an island economy with limited domestic energy resources facing increasing threats to its energy supply chains from regional tensions.