Taiwan’s Nuclear Shutdown: The End of a Failing Industry or a Big Mistake?

By: Ben Rask

Power plants in Taiwan (Image source: Taiwan Power Company)

The decision of over 40 countries worldwide to ramp up their commitments to the new wave of nuclear energy technology reflects a global trend, driven by promises of a carbon-free and more efficient fu

ture. Simultaneously, Taiwan shut down its last operational reactor on May 17th, 2025, marking the completion of the island nation’s transition into a “post-nuclear homeland”, a goal set out by the Democratic Progressive Party (DPP) in 2016. Does this mean Taiwan’s energy sector is a backward system moving in the wrong direction? Maybe not.

The nuclear energy debate in Taiwan is contentious and politically polarized. The DPP prioritizes investments in renewable energy and natural gas over nuclear energy, citing safety concerns, waste storage issues, and public opposition. President Lai has stated that he is willing to support nuclear energy if these concerns are addressed, but legislators remain in deadlock.

Proponents of nuclear energy argue that it could reduce reliance on foreign imports, which make up 98% of Taiwan’s energy supply, by replacing fossil fuels. As global AI demand surges, the semiconductor industry will require a strong energy sector to support it. In addition to vulnerability to global supply shocks, energy dependence raises national security concerns as China continues aggressively ramping up gray-zone operations. In the event of conflict, security analysts worry that the PRC could exploit Taiwan’s energy dependency by blockading imports, starving the island of power during a crisis. According to Taiwan’s Bureau of Energy, the country only possesses enough natural gas stockpiles to last 11 days in the case of an emergency.

Others take an environmental stance, pointing out that the decline of nuclear energy in Taiwan could result in more carbon emissions as fossil fuels take its place. The DPP has long touted renewable energy as the solution to fossil fuel use, but critics remain doubtful if Taiwan possesses the necessary land or storage capacity. Progress is slow, as evidenced by the Ministry of Economic Affairs lowering its renewable energy target for 2025 from 20 to 15 percent. According to researchers at the National Tsing Hua University, stalling of renewable energy leaves fossil fuels as the only alternative to a fading nuclear sector.

Despite its merits, nuclear energy comes with its own unique challenges. Taiwan is situated in a seismically active region, a fact demonstrated by the 7.4 magnitude Hualien Earthquake in 2024. The Japanese Fukushima disaster, one of the most catastrophic nuclear accidents in history, was the result of an earthquake and subsequent tsunami disabling cooling systems. Critics of nuclear energy fear a similar disaster could occur if the island expands its nuclear capacity.

Since the 2011 meltdown, new technology has lowered the likelihood of another accident. An article published in the Nuclear Engineering International Magazine reported on small modular reactors (SMRs) that use a floating seismic isolation system (FSIS): a new innovation that uses air cavities and orifices to dampen seismic stress. In simulations using scaled models, FSIS technology stood up to seismic waves similar to those of the 2011 Great East Japan Earthquake. SMRs also employ passive cooling systems, which means they don’t rely on an external source of electricity to cool reactor cores, reducing the risk of a meltdown in the case of a blackout. Japan’s re-commitment to expanding its nuclear capacity seems to show renewed confidence in the safety of nuclear energy. Despite its promising potential, this technology is still in its infancy, with only two SMRs in operation globally, though momentum appears to be mounting with over 80 SMR designs in development across 18 countries. 

The question now is whether Taiwan could realistically implement such cutting-edge technology. The answer to that question remains to be seen, but exploration is underway. The National Atomic Research Institute (NARI) launched a four-year research project last month that aims to guide policy on the development of SMRs, boasting a budget of over 100 million Taiwanese dollars (USD 3.3m). Taiwan’s nuclear energy sector faces declining expertise, as plant closures have incentivized specialists to either leave the field or seek opportunities elsewhere. The initiative aims to cultivate expertise by conducting overseas research and encouraging specialists to come to Taiwan. NARI has set an ambitious timeline to begin developing SMRs by 2030. 

Although revolutionary breakthroughs provide a promising outlook for the future of nuclear safety, radioactive waste remains a major unresolved challenge for Taiwan’s nuclear energy sector. In the short term, spent fuel rods are mostly being kept on-site, and options for long-term disposal are scarce, mostly due to a lack of regulations regarding high-level waste. In fact, the Kuosheng plant shut down five months earlier than scheduled in 2021 due to insufficient storage. A history of mismanagement, illustrated by the controversial storage of radioactive waste on Orchid Island without the consent of the indigenous community, has left little public support for expanding storage capacity. In a 2018 referendum, 59 percent of voters supported keeping nuclear energy beyond 2025, while a later 2021 vote revealed only 41 percent backed a proposal to resume construction of the Lungmen plant, demonstrating that the Taiwanese public is losing faith in their nuclear energy sector. Contrary to what many nuclear enthusiasts claim, SMRs may not be a silver bullet solution for waste storage issues. A 2022 study by researchers from Stanford and the University of British Columbia found that SMRs might actually generate more nuclear waste due to their use of novel fuel types and their tendency for neutron leakage.

Even if Taiwan’s nuclear energy industry somehow found a solution to its waste disposal issues, it still faces legal challenges. Obtaining licenses for new reactors is a complex bureaucratic process, making nuclear energy difficult to sell to the public and investors. Its lengthy nature, coupled with even longer construction times, demonstrates that nuclear energy is by no means a short-term solution to the nation’s issues. If Taiwan invested in nuclear energy today, it might not see the benefits for decades.

Before it makes any commitments to advancing its nuclear energy sector, Taiwan should dedicate significant focus to crafting a more effective waste disposal plan through initiatives such as the National Atomic Research Institute’s research. The success of other countries like Finland, South Korea, and Japan in developing their waste management infrastructure demonstrates that progress is possible. If the government can develop a robust and effective waste management strategy, public opinion may steadily shift back to supporting nuclear energy.

Nuclear energy has much to offer, but whether or not its drawbacks are resolved will depend on the policies of the Taiwanese government and the direction of technological progress.

(Contributed articles reflect the authors’ views only and not those of the Taiwan NextGen Foundation.)