Page 8 - GLNG Week 36 2022

GLNG COMMENTARY GLNG

closure is 2025. There were indications that the cultivable land to solar plants, even when that
government might move to complete one of two land is not producing anything.
mothballed reactors at the 2.7-GW Lungmen At the end of last year, there was 7.7 GW of
plant, but a majority of voters opposed that in solar capacity up and running. This is signifi-
a referendum in December 2021. On the coal cantly more than the 1.2 GW in operation in
front, at least six ageing coal-fired power stations 2016, but still a long way off the 20-GW target
are scheduled for closure by the middle of the for 2025. Meanwhile, offshore wind develop-
decade. ment has been hindered by issues with cost and
Therefore, despite the high cost of gas at pres- logistics.
ent, it seems that Taiwan will have to rely more
and more on gas to serve as the main baseload What next?
power source to support intermittent renew- It seems likely then that Taiwan will increasingly
ables, especially if its targets to expand wind need to turn to gas to secure its energy security.
and solar power prove unrealistic. Indeed, the But new gas-fired power plants will need to be
government projects that the share of gas in the developed in tandem with new regasification
power mix will grow to 50% by 2025. capacity.
There are already signs that the government Currently, state-owned CPC Corp. has two
might have to scale down its renewables ambi- LNG import terminals at Taichung and Yung.
tions. The Bureau of Energy of the Ministry of Both facilities are due to be expanded, and CPC
Economic Affairs projected in July that wind is planning to construct a third at Taoyuan. At
and solar would only account for just over 15% the same time, Taipower is developing new
of power production in 2025. regasification terminals at Taichung port and
While the bureau cited higher-than-expected Xie-he. But even so, the country could struggle
power demand growth, there have also been to develop the regasification that it will need
delays in project completions. One of the main by 2025. A failure to do so will mean that coal
obstacles has been land availability for new solar retains a share of the power mix above 30%,
developments, particularly as the agriculture regardless of how politically unpopular this will
industry has blocked the transfer of potentially be.™

P8 www. NEWSBASE .com Week 36 09•September•2022