Taiwan Shuts Last Nuclear Reactor as Energy Debate Heats Up
(Bloomberg) -- Taiwan started to shut its final nuclear reactor on Saturday as a 40-year operating license expired, in a move that could threaten the island’s energy security and climate goals.
The load-shedding of the final reactor began from 1 p.m. local time and the system will be disconnected at about 10 p.m. before it’s safely shut down around midnight, according to a statement from the state-utility Taiwan Power Co. It added that the last reactor at Maanshan nuclear plant accounted for about 3% of Taiwan’s total power generation.
The closure comes at a time when debate among lawmakers is intensifying over whether to extend the life of nuclear facilities and retain atomic power in the territory’s energy mix. On Tuesday, legislators revised a bill that effectively opens the door for a restart of shuttered reactors.
Energy security is a critical issue for the island, especially as it houses some of the world’s top chipmakers including Taiwan Semiconductor Manufacturing Co. Rising tensions with China, which considers Taiwan part of its territory, are also stoking concerns that energy supplies could be disrupted through a military blockade.
The amended law allows nuclear plants, which could only operate for 40 years, to extend or renew licenses for up to 20 years at a time. The revision hints at a reversal that could bring the territory in line with a global resurgence of interest in the low-carbon, round-the-clock supply of atomic power.
Still, it would likely take at least two to four years for the Maanshan nuclear plant to restart commercial operations even if it undergoes necessary safety checks, said Aniket Autade, senior analyst at Rystad Energy.
The island will likely need to continue relying on imported liquefied natural gas to meet its energy needs, including for the AI and semiconductor sectors, which consume massive amounts of power.
To maintain a stable power supply, Taipower is adding nearly five gigawatts worth of gas-fired capacity to the grid this year, equal to roughly five nuclear reactors. Another 3.5 gigawatts worth of capacity will also be added from wind and photo-voltaic power, Taipower said on Saturday.
Costs for running existing LNG plants under Taipower, and electricity purchases from private power plants are roughly double the cost of nuclear power, according to Autade. He added the weak financial position of the utility leaves it with limited flexibility to absorb higher costs.
“The Taiwanese government will likely need to raise electricity prices in the future,” he said.
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