Taiwan is exploring international solutions to its green energy shortage, with Economic Affairs Minister J.W. Kuo recently proposing a plan to build power plants in the Philippines and transmit green […]

Taiwan is exploring international solutions to its green energy shortage, with Economic Affairs Minister J.W. Kuo recently proposing a plan to build power plants in the Philippines and transmit green energy back to Taiwan. Although Kuo later downplayed the idea, it has sparked widespread debate, with energy companies showing optimism about the potential. However, the proposal faces significant technical, policy, and cost challenges. 

Taiwan’s renewable energy sector, particularly solar and wind power, has seen substantial growth, but land limitations and policy uncertainties hinder expansion. Meanwhile, demand for green energy is surging, particularly from tech and semiconductor industries, which are under pressure to meet carbon-neutral goals. Semiconductor companies, vital to Taiwan’s economy, require stable green energy supplies to avoid relocating production facilities, a move that could increase operational costs and affect the nation’s economic stability. 

Kuo’s plan highlights the broader issue of Taiwan’s insufficient green energy supply and the potential of cross-border energy imports as a solution. Despite enthusiasm from renewable energy stakeholders, the technical feasibility of transporting electricity via undersea cables from the Philippines presents challenges, including high transmission costs and energy loss. 

Despite these hurdles, companies like J&V Energy, ATE Energy, and HD Renewable Energy have already begun operations in the Philippines, exploring the country’s green energy potential. For Taiwan, leveraging the Philippines’ renewable resources could alleviate its energy shortfall, but the success of such an initiative will depend on overcoming significant financial, technical, and policy barriers. 

Sources:  

https://www.digitimes.com/news/a20241018PD212/taiwan-renewable-energy-policy-demand-electricity.html 

https://www.taipeitimes.com/News/front/archives/2024/10/16/2003825369 

https://www.wired.com/story/taiwan-makes-the-majority-of-the-worlds-computer-chips-now-its-running-out-of-electricity/ 

https://asia.nikkei.com/Spotlight/The-Big-Story/Green-energy-realities-threaten-Asia-s-tech-dreams