Taiwan

Overview

Taiwan's electricity market is defined by a state-owned monopoly undergoing a critical transition toward a "Nuclear-Free Era" following the decommissioning of its last nuclear power plant in May 2025 ¹. The Taiwan Power Company (Taipower) remains the dominant player, owning the entire transmission and distribution grid and generating nearly 80% of the country's electricity ¹. While the Electricity Act was amended in 2017 to allow private renewable energy trading, full market liberalization for fossil fuels remains delayed ².

The energy mix is heavily reliant on imported fossil fuels, which account for over 80% of total generation ³. As of early 2026, renewable energy accounts for approximately 12.7% to 15.9% of the total electricity mix, with Solar PV as the primary driver and offshore wind seeing significant increases ⁴. The current generation breakdown includes Natural Gas (~42–48%), Coal (~31–36%), and Renewables (~12–16%) ⁵⁶.

Taiwan maintains some of the world's lowest electricity prices through government subsidies, though this has led to financial strain; Taipower accumulated over NTD 350 billion in losses between 2022 and 2024 due to rising fuel costs, prompting a recent 12.1% hike in industrial electricity prices ⁷. The market faces unique challenges driven by the semiconductor industry (led by TSMC), which consumes nearly half of all industrial electricity and may require more power than New Zealand by 2030 ⁸. Additionally, energy security is a major concern, as the island imports 97–98% of its energy and maintains natural gas reserves lasting only 7–11 days ⁸.

As of 2022, Taiwan's grid carbon intensity is approximately 0.495 kg CO₂e/kWh ⁹. Under the 2050 Net-Zero Roadmap, the government targets a reduction of total emissions by 28% ± 2% compared to 2005 levels by 2030, and aims for 60–70% renewables in the energy mix by 2050 ¹⁰.

Market Structure

Taiwan's electricity sector is dominated by state-owned enterprises (SOEs), operating under a vertically integrated model rather than the investor-owned or cooperative structures common in North America. The Taiwan Power Company (Taipower) serves as the dominant utility, maintaining a monopoly over generation, transmission, and distribution ¹¹¹². While 9 Independent Power Producers (IPPs) operate in the market, they are required to sell their power to Taipower via Power Purchase Agreements (PPAs) ¹³.

The market is currently undergoing partial liberalization following the 2017 Electricity Act Amendment, though full retail choice is not yet available. Reforms have focused specifically on renewable energy, allowing consumers to purchase electricity directly from licensed renewable retailers or green energy producers. However, conventional energy sources (coal, gas, nuclear) remain under Taipower's regulated monopoly [Executive Yuan, R.O.C. (Taiwan) +3]. Corporate adoption of green energy has driven recent market activity, with Corporate Power Purchase Agreement (CPPA) volumes growing by 30% in 2024 [Executive Yuan, R.O.C. (Taiwan) +3].

Taiwan does not currently utilize a fully independent System Operator (ISO) or Regional Transmission Organization (RTO). System operations are managed internally by Taipower's System Operation Department, under the oversight of the Ministry of Economic Affairs (MOEA) and the Bureau of Energy ¹⁴¹³. The government has outlined a three-phase transition toward a more competitive market, which includes the future establishment of an independent ISO and the reorganization of Taipower into a holding company with separate subsidiaries for generation and grid management [Executive Yuan, R.O.C. (Taiwan) +4]¹⁴.

Clean Energy Policy

Net-Zero and Strategic Targets Taiwan has legally committed to achieving net-zero greenhouse gas emissions by 2050 under the Climate Change Response Act passed in February 2023 ¹⁵. To achieve this, the government has established a long-term power mix strategy targeting 60–70% renewable energy, 9–12% hydrogen, and ~20% thermal power with Carbon Capture, Utilization, and Storage (CCUS) ¹⁵. Intermediate targets include a carbon fee system starting in 2025 and investments in grid resilience and storage ¹⁵.

Renewable Energy Development Act (REDA) The primary legal framework for clean energy is the Renewable Energy Development Act (REDA). Originally targeting a "532" mix (50% gas, 30% coal, 20% renewables) by 2025, the government has pushed the 20% renewable energy target back to late 2026 due to regulatory hurdles and project delays ¹⁶. As of late 2024, renewables accounted for approximately 11% of total electricity ¹⁵.

Large Electricity User Clause (RPS) Unique in its demand-side focus, Taiwan's Renewable Portfolio Standard (RPS)—known locally as the "Large Electricity User Clause"—mandates that "large electricity users" (contract capacity of 5,000 kW or more) source at least 10% of their electricity from renewable sources ¹⁷. A five-year grace period for compliance began in 2021 ¹⁷. Unlike many jurisdictions, this policy targets consumers rather than utilities and is characterized by strict requirements, such as the preference for "bundled" certificates and a zero-sale restriction preventing the resale of renewable energy for cash benefit ¹⁷.

Sector-Specific Regulations

• Building Requirements: New or expanded buildings over 1,000 square meters are required to install rooftop solar panels, expected to add roughly 660 MW annually through 2028 ¹⁶.
• Offshore Wind: Regulations have eased domestic sourcing requirements to facilitate Phase 3 zonal development goals (9 GW by 2031) ¹⁶.
• Emerging Technologies: Recent amendments to REDA have simplified procedures for geothermal and biomass sectors ¹⁶.

⚠️ Uncertainties: While the current policy mandates a nuclear phase-out by 2025 with the shutdown of the Maanshan plant, this remains a subject of intense political debate regarding potential restarts for energy security ¹⁶¹⁵.

Utility Landscape

The electric power industry in Taiwan is dominated by the state-owned Taiwan Power Company (Taipower), which operates as a vertically integrated utility managing generation, transmission, distribution, and sales nationwide ¹⁸¹⁹. Unlike markets with municipal cooperatives or investor-owned utilities (IOUs), Taipower serves as the sole provider for roughly 11.1 million customers across the main island and offshore islands such as Penghu, Kinmen, and Lienchiang ¹⁸²⁰.

While Taipower maintains a near-monopoly on transmission and distribution, the generation market was partially liberalized in 1995 to allow Independent Power Producers (IPPs) to sell electricity back to the utility ¹⁸. Private sector involvement in the broader energy landscape is primarily concentrated in natural gas distribution (e.g., Taipei Gas, Shinhsiung Natural Gas) and cogeneration plants (e.g., Ta-Yuan Cogeneration), rather than in electric distribution utilities ²¹²².

Key Statistics (2025)

• Generating Capacity: Over 33,000 MW across more than 70 power plants ²⁰.
• Financials: Taipower reported a record net profit of approximately NT$72.9 billion (US$2.32 billion) for 2025 ²⁰.
• Market Mix Goals (2030): The government targets a fuel mix of 50% natural gas, 30% renewables, and 20% coal as part of a "nuclear-free homeland" policy ²³.

Consumer Services All residents are served directly by Taipower. Billing is typically conducted bi-monthly, with payment options including convenience stores (e.g., 7-Eleven), the Taipower APP, and bank transfers. A centralized toll-free hotline (1911) manages customer service and outage reporting ²⁴.

SSS-Eligible Resources

As of March 2026, Taiwan has no operating commercial nuclear power plants, having officially completed its nuclear phase-out when the final reactor at the Maanshan (Third Nuclear Power Plant) was disconnected from the grid on May 17, 2025 ²⁵. All commercial nuclear facilities—Jinshan, Kuosheng, Maanshan, and the unfinished Lungmen plant—are currently in decommissioning or mothballed status ²⁵. Despite legislative amendments passed in May 2025 allowing license renewals for up to 20 years, and a technical eligibility evaluation for Maanshan and Kuosheng confirmed by state-run Taipower, no plants are currently generating power. Government estimates indicate that any potential restart would require at least 3.5 years for safety reviews and infrastructure updates ²⁶.

Hydropower remains a consistent legacy clean energy resource, contributing approximately 1.2% to 2% of the total electricity mix as of early 2026 ²⁷. Total installed hydroelectric capacity stands at approximately 4,700 MW to 4,800 MW, with annual generation recorded at roughly 5.5 million MWh in 2025 ²⁸. The fleet includes conventional (run-of-the-river and dam) facilities and pumped-storage plants, the latter serving as critical grid stabilization assets to balance intermittent solar and wind generation. Current development trends prioritize Small Hydropower (SHP) projects (under 20 MW) over large new dams due to environmental constraints ²⁸.

EAC/REC Registry Infrastructure

The primary registry for Energy Attribute Certificates (EACs) in Taiwan is the National Renewable Energy Certification Center (T-REC Center). Established and managed by the Bureau of Standards, Metrology and Inspection (BSMI) under the Ministry of Economic Affairs, the T-REC Center serves as the official government-led platform for issuing, tracking, and managing Taiwan Renewable Energy Certificates (T-RECs) ¹⁷¹⁶.

System Operations and Standards The system operates under the Implementation Regulations Governing Renewable Energy Certificates, established in 2017 ¹⁶. Each T-REC represents 1 MWh (1,000 kWh) of generated renewable electricity ¹⁷. To prevent double-counting, the tracking system integrates with Taiwan's national Greenhouse Gas (GHG) Registry and assigns a unique serial number to every certificate, logging details such as energy source, location, and generation period ¹⁷¹⁵.

Verification and Innovation Before issuance, the center verifies renewable energy facilities and generation data, often utilizing Advanced Metering Infrastructure (AMI) for immediate online tracking ¹⁷. Taiwan is currently developing sub-hourly (15-minute) matched certificates to support 24/7 carbon-free energy (CFE) goals ¹⁶¹⁵.

International Standards and Alternatives While T-REC is the domestic standard, international certificates such as I-REC(E) operate in Taiwan to facilitate global reporting. Notably, eligibility for I-RECs was expanded to include solar and wind facilities not receiving government Feed-in Tariffs (FiT) ¹⁷. Additionally, the Green-e Renewable Energy Standard for Taiwan provides third-party certification for renewable energy products to ensure quality and transparency ¹⁷¹⁵.

Emissions Factors & Data Sources

Taiwan utilizes a single, national average emissions factor for Scope 2 reporting, as the grid operates as a single balancing authority rather than utilizing subregions like the U.S. eGRID system [臺灣港務股份有限公司, U.S. Environmental Protection Agency (.gov)]. The official factor is published annually by the Ministry of Economic Affairs (MOEA) Energy Administration and Taiwan Power Company (Taipower) [經濟部能源署, U.S. Environmental Protection Agency (.gov)].

Historical Emission Factors

The carbon intensity of the grid has declined steadily in recent years due to increased renewable energy production and a transition from coal to natural gas ²⁹. Official historical factors are:

• 2024: 0.474 kg CO2e/kWh ²⁹
• 2023: 0.494 kg CO2e/kWh ³⁰
• 2022: 0.495 kg CO2e/kWh ²⁹
• 2021: 0.509 kg CO2e/kWh ²⁹
• 2020: 0.502 kg CO2e/kWh ³¹

Reporting Standards & Methodology

• Location-Based Method: For Scope 2 accounting under the GHG Protocol, organizations use the MOEA national average factor [U.S. Environmental Protection Agency (.gov), GHG Protocol].
• Market-Based Method: Companies may use Taiwan Renewable Energy Certificates (T-RECs) as recognized contractual instruments ³².
• Calculation Updates: In 2023, Taiwan updated its "Standard Operating Procedures for Calculation of Electricity Emissions Factor" (Version 1.4) to adopt the Ecabert method for heat-electricity allocation in cogeneration, aligning with IEA recommendations [U.S. Environmental Protection Agency (.gov)].

Policy Targets & Projections

The government has set a target to reduce the grid emission factor to 0.394 kg CO2e/kWh by 2025 ³³. However, external estimates for 2025 project a higher intensity of approximately 0.540 kg CO2e/kWh, highlighting discrepancies between official targets and international lifecycle assessments ³³.

⚠️ Note: Some search results displayed the 2024 factor as "$CO_2e$" or "$CO_2e/kWh$" without the numerical value in the text snippet, though other sources confirmed the 0.474 figure ³⁴.

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References

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Sources & Last Updated

Research Date: 2026-03-14
Data Sources: SerpAPI research aggregation, IEA, IRENA, national energy agencies

This page was generated using automated research and may contain inaccuracies. Verify critical data with primary sources.

Footnotes

1. EY +2 ↩ ↩²

2. InfoLink Consulting +5 ↩

3. Yale E360 +1 ↩

4. Taipei Times +3 ↩

5. PwC +3 ↩

6. Low-Carbon Power +1 ↩

7. EY +1 ↩

8. Yale E360 +4 ↩ ↩²

9. 經濟部能源署 +3 ↩

10. 環境部氣候變遷署 +2 ↩

11. ScienceDirect.com +4 ↩

12. Wikipedia +2 ↩

13. ScienceDirect.com +2 ↩ ↩²

14. ScienceDirect.com +1 ↩ ↩²

15. 3 ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸

16. 2 ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸

17. 1 ↩ ↩² ↩³ ↩⁴ ↩⁵ ↩⁶ ↩⁷ ↩⁸ ↩⁹

18. Wikipedia +1 ↩ ↩² ↩³

19. Wikipedia +4 ↩

20. World Benchmarking Alliance +1 ↩ ↩² ↩³

21. Investing.com ↩

22. Taipei Exchange ↩

23. Global Taiwan Institute +5 ↩

24. 台灣電力公司 +2 ↩

25. World Nuclear Association ↩ ↩²

26. IEEE Spectrum ↩

27. 台灣電力公司 ↩

28. Wikipedia ↩ ↩²

29. energypedia, 經濟部能源署 ↩ ↩² ↩³ ↩⁴

30. energipedia, 經濟部能源署 ↩

31. 經濟部能源署 ↩

32. GHG Protocol ↩

33. energypedia ↩ ↩²

34. 臺灣港務股份有限公司, 經濟部能源署, energypedia ↩