Failed Nuclear Power Vote Adds to Taiwan’s Energy Conundrum

(Bloomberg) — A failed referendum to restart a nuclear power plant will increase pressure on Taiwan’s leader to find ways to meet the island’s rising energy needs as he balances demands of an expanding chip industry, party policies and concerns over catastrophic accidents.

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Only about 22% of eligible voters on Saturday voted in favor of restarting the Maanshan nuclear plant, missing the 25% threshold for it to pass. President Lai Ching-te held a press conference as results trickled in to show the measure failed, stressing the importance of safety issues in restarting Taiwan’s nuclear program.

Of the ballots cast, about 74% were in favor of restarting the plant, but the measure still fell short of the required threshold by roughly 650,000 votes, partly due to low turnout.

The referendum result, even in its defeat, is sending a signal to the government that more of its people believe that nuclear-based energy solutions should be considered, said William Yang, senior analyst for North East Asia at the International Crisis Group.

“It also reflects the public’s anxiety and concern about Taiwan’s energy resilience and capability to maintain stable energy supply,” Yang said. “This result, even though it falls short of the legal threshold, showcases the gap between the government’s preferred policy line and the public opinion.”

Nuclear power’s future in Taiwan has been an ongoing struggle for Lai and his Democratic Progressive Party, which has historically opposed its use on concerns about the waste produced and the risk of accidents. The counterpoint to these worries has been the threat that China could cripple Taiwan, which imports almost 96% of its energy, by imposing an embargo or blockade.

The issue is critical for the island, given its small geographical size and relative lack of energy options, coupled with its role as a global technology manufacturing hub. While Taiwan’s retreat from nuclear energy has been decades in the making, the decision is increasingly coming with a steep price.

Companies such as Taiwan Semiconductor Manufacturing Co. face electricity rates on the island that surpass those at their overseas plants. Taiwan’s power demand is projected to rise 13% by the end of the decade, largely driven by datacenters and chipmakers.

There has already been growing global appetite for atomic power, especially in nations racing to fuel AI infrastructure and meet climate change emissions targets. Tech companies including Apple Inc. are keen to move to cleaner sources of energy, and Jensen Huang, chief executive officer of Nvidia Corp., said during a stopover in Taipei last week that nuclear power is an “excellent option” for Taiwan.

Restarting Taiwan’s mothballed nuclear power plants is one of the key things the self-governed island should do to bolster its energy security against threats from China, according to two top former US security officials who were said to have made the recommendations to Lai recently.

Rising fuel costs and renewable energy investments have weighed on the finances of Taipower, the island’s primary power supplier. The state utility, which has absorbed higher costs to keep prices affordable, reported over NT$420 billion ($13.7 billion) in accumulated losses by the end of last year. That’s putting pressure on the government to increase power rates for businesses and households.

Taiwan’s legislature revised a nuclear power bill in May that effectively opens the door for a restart of the island’s atomic plants by renewing or extending licenses for up to 20 years, though it was too late for the Maanshan facility.

For now, Lai reiterated that the door is not closed on a return of nuclear power.

“Nuclear power’s safety is a scientific issue, and safety cannot be resolved by a single referendum,” he said on Saturday. “If future technology is safer, has less nuclear waste, and more accepted by society, we will not rule out advanced nuclear energy.”

—With assistance from Sing Yee Ong, Jane Lanhee Lee and Stephen Stapczynski.

(Updates with details of the referendum results in the third paragraph.)

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