Jong-Shun Chen, Associate Research Fellow at the Center for Green Economy of the Chung-Hua Institution for Economic Research (CIER), said Taiwan’s power system depends heavily on critical infrastructure such as large power plants, extra-high-voltage transmission lines, and liquefied natural gas storage facilities. These critical nodes are highly concentrated. Damage to or an accident at a major node could cause widespread power outages, underscoring the importance of decentralizing the power system and strengthening backup capacity.
Energy Mix Must Balance Diversity and Stability while Assessing Nuclear Power and Emerging Nuclear Technologies
Due to Taiwan’s limited land resources, power plants and related facilities are typically expanded at existing sites, which makes geographical diversification challenging. Nevertheless, an energy policy that relies excessively on natural gas-fired generation would further elevate power supply risks. Since natural gas depends on long-distance shipping, disruptions to its supply chains or storage facilities could compromise power system stability. Therefore, energy planning should maintain a diverse generation mix and minimize dependence on any single energy source.
Chen stated that nuclear power should remain part of policy discussions regarding power supply stability and energy security. Taiwan should carefully evaluate various energy options from the broader perspective of power system resilience, rather than relying excessively on a single generation method. As renewable energy constitutes a larger share of the energy mix, its weather-dependent output will further complicate grid dispatch. The government must therefore simultaneously strengthen backup capacity and grid dispatch capabilities.
Regional Electricity Pricing and Greater Reserve Capacity Could Strengthen Grid Resilience against Renewable Energy Volatility
Chen further recommended that Taiwan Power Company (Taipower) consider introducing regional electricity pricing. By reflecting regional differences in electricity supply, demand, and generation costs, such a system could guide electricity consumption and generation siting, reduce the need for long-distance interregional transmission, and gradually address structural problems arising from concentrated electricity supply and north-south power transmission.
As the renewable energy share continues to rise, Chen also suggested that the government review its reserve capacity planning and consider raising the current reserve capacity margin from 15% to 20%, or even 30%, to manage fluctuations in renewable energy generation and unexpected electricity demand. Although increasing reserve capacity would raise system costs, it warrants careful consideration from the long-term perspective of energy transition and power supply security.
Overall, Taiwan’s energy transition should focus on more than adjusting the power generation mix. It must also address generation siting, transmission and distribution grid resilience, fuel supply security, and backup capacity. Balancing the energy transition, power supply stability, and economic costs will be a major challenge for future energy policy.
Source: China Times (November 1, 2026). Scholars Urge Deployment of Conventional and Next-Generation Nuclear Power to Avert Power Supply Vulnerabilities. https://www.chinatimes.com/newspapers/20261101000406-260114