Page 5 - AsianOil Week 35 2022

AsianOil COMMENTARY AsianOil

Taiwanese electricity generation

(TWh)

Pumped storage Coal Oil
Gas Nuclear Hydro
Solar Wind Biomass
Waste
350

300

250

200

150

100

50

0
2001 2006 2011 2016 2021

those policies enjoy widespread public support. obstacles has been land availability for new solar
The closure of three nuclear reactors in recent developments, particularly as the agriculture
years has already led capacity to fall from 5.144 industry has blocked the transfer of potentially
GW in 2016 to 2.859 GW at present. Only the cultivable land to solar plants, even when that
Kuosheng-2 and Maanshaan–1 and –2 reactors land is not producing anything.
remain in operation, and the target for their At the end of last year, there was 7.7 GW of
closure is 2025. There were indications that the solar capacity up and running. This is signifi-
government might move to complete one of two cantly more than the 1.2 GW in operation in
mothballed reactors at the 2.7-GW Lungmen 2016, but still a long way off the 20-GW target
plant, but a majority of voters opposed that in for 2025. Meanwhile, offshore wind develop-
a referendum in December 2021. On the coal ment has been hindered by issues with cost and
front, at least six ageing coal-fired power stations logistics.
are scheduled for closure by the middle of the
decade. What next?
Therefore, despite the high cost of gas at pres- It seems likely then that Taiwan will increas-
ent, it seems that Taiwan will have to rely more ingly need to turn to gas to secure its energy
and more on gas to serve as the main baseload security. But, new gas-fired power plants will
power source to support intermittent renew- need to be developed in tandem with new regas-
ables, especially if its targets to expand wind ification capacity.
and solar power prove unrealistic. Indeed, the Currently, state-owned CPC Corp. has two
government projects that the share of gas in the LNG import terminals at Taichung and Yung.
power mix will grow to 50% by 2025. Both facilities are due to be expanded, and CPC
There are already signs that the government is planning to construct a third at Taoyuan. At
might have to scale down its renewables ambi- the same time, Taipower is developing new
tions. The Bureau of Energy of the Ministry of regasification terminals at Taichung port and
Economic Affairs projected in July that wind Xie-he. But even so, the country could struggle
and solar would only account for just over 15% to develop the regasification that it will need
of power production in 2025. by 2025. A failure to do so will mean that coal
While the bureau cited higher-than-expected retains a share of the power mix above 30%,
power demand growth, there have also been regardless of how politically unpopular this will
delays in project completions. One of the main be. ™

Week 35 05•September•2022 www. NEWSBASE .com P5