Large-scale power rationing hit China in late September, seriously affecting not only industrial output, but also the public’s daily power supply. Taiwan also experienced two major power cuts within one week in May, and all Taiwanese should pay greater attention to how the government’s energy policy plans aim to tackle the problem.
The power cuts in China were a result of its dual-control policy, which aims to control total energy consumption and intensity — it was first proposed in a 2015 slogan.
With the spread of the COVID-19 pandemic in ASEAN member countries and India during the first half of the year, a large number of orders were diverted to Chinese manufacturers.
As local officials in China failed to follow rules on carbon emissions and energy consumption, many provinces had consumed as much as 90 percent of the year’s quota by September.
To meet its carbon emission target for the year, while accounting for peak electricity consumption in the winter months, China imposed abrupt power rationing in many provinces, forcing factories to shut down.
This shows what can happen when a government sets an empty target without the necessary preparations for unexpected incidents — and it should serve as a warning to Taiwan.
President Tsai Ing-wen (蔡英文) has pledged that Taiwan would achieve net-zero carbon emissions by 2050.
To reduce air pollution, the nation would gradually replace coal-fired power generation with natural gas power plants, in addition to the development of green power generation.
However, with its isolated power grid, Taiwan cannot purchase electricity from other nations through a shared grid, as many European countries can.
The nation also relies on liquefied natural gas imports. When international prices increase, or weather conditions impede the transportation of fuel by sea, Taiwan could face power shortages.
Learning from the rationing in China, Taiwan should store enough natural gas to secure its power supply and accelerate the development of green power generation.
Since US-China trade tensions proliferated in 2018, many China-based Taiwanese businesspeople selected to return their production facilities to Taiwan. Even if the inflow has boosted economic growth, it has — from an industrial perspective — raised electricity consumption.
The government should encourage all sectors of the economy to improve the efficiency of their energy use and reduce their carbon emissions.
Energy savings and carbon reduction have become a global necessity, and this trend could be viewed as a new industrial revolution. Whoever manages to take the lead in this technical process could gain significant dividends in the next generation of industrial production.
The nation is facing a world that must prioritize energy savings, carbon reduction and sustainable operations. Industries, governments and the public can no longer demand cheap water, electricity, land and labor for manufacturing.
Instead, a broader, long-term vision must be adopted when planning for the future.
The chaos and tremendous financial losses triggered by China’s dual-control policy demonstrate that Taiwan must evaluate whether the government’s energy and industry policies are complementary, or whether they are on the precipice of repeating Beijing’s error.
Chen Kuan-lin is a research manager at a think tank.
Translated by Eddy Chang
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