Taiwan should use the current global energy crisis to reassess its energy policy and reduce reliance on fossil fuels, Pegatron Corp chairman Tung Tzu-hsien (童子賢) said.
Rising energy prices triggered by the US-Israel conflict with Iran highlight vulnerabilities in Taiwan’s energy structure, the electronics manufacturing service provider’s chairman said.
Taiwan should not adopt the mindset of “it is the same everywhere,” but instead reassess the integrity and rationality of its energy policies, he said, adding that “Taiwan should not waste this energy crisis.”
Photo: Lin Cheng-kun, Taipei Times
Whether by increasing nuclear power or expanding renewable energy, fossil fuel-reliant energy should be reduced by 20 percent by 2030, he said.
Over the past decade, Taiwan has promoted energy transformation by adopting a strategy of increasing natural gas power generation to phase out nuclear energy and reduce carbon emissions, but that has resulted in a reliance on imports of liquefied natural gas (LNG), which experiences significant price and supply fluctuations, and results in lower energy resilience, Tung said.
The share of LNG in Taiwan’s power generation has risen from about 30 percent in 2015 to about 50 percent this year, he said.
In comparison, regional competitors such as Japan and South Korea have more balanced energy mixes, he added. South Korea generates 30.4 percent of its power from nuclear energy, 29.1 percent from coal and 26.1 percent from LNG, while Japan’s mix includes 9.5 percent nuclear, 27.6 percent coal and 31 percent LNG, he said.
Meanwhile, after Taiwan shut down its last nuclear power plant in May last year, coal now accounts for 31.3 percent of energy while natural gas makes up as much as 50.2 percent, Tung said.
That totals 81.5 percent, which is significantly higher than Japan and South Korea, indicating that Taiwan’s energy structure is more concentrated and vulnerable, he added.
Taiwan, Japan and South Korea compete in semiconductors, electronics and precision machinery — industries that depend on stable and affordable power, Tung said.
If Taiwan’s energy mix diverges too sharply from its competitors, resulting in unstable prices or supply, it could erode the nation’s competitive advantage, he added.
The cost per LNG shipment has increased by about NT$1 billion (US$31.52 million), with Taiwan importing about 400 shipments annually, Tung said, adding that prolonged conflict and rising prices would place heavy pressure on public finances and electricity costs.
Taiwan’s LNG reserves cover about 11 days, 90 days for crude oil and up to 540 days for nuclear fuel, meaning supply disruptions could quickly lead to power shortages, Tung said.
LNG should serve as a supplementary energy source rather than the primary one, he added.
Responding to reports that the government might restart coal-fired plants, Tung said such measures would only provide short-term relief while worsening pollution and structural imbalances.
Despite a decade of energy transition, renewable energy accounts for only about 15 percent of Taiwan’s total energy generation, lagging behind the EU’s 71 percent and China’s 41 percent, he said.
Tung urged the government to take note of the global reconsideration of nuclear energy, citing moves by the EU, the US, Japan and South Korea to integrate nuclear power with renewables to reduce dependence on LNG.
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