Research and analysis

Taiwan: nuclear policy at stake June 2014

Published 24 June 2014

0.1 Summary

Administration halts construction of virtually complete fourth nuclear power plant in response to anti-nuclear protests. National Energy Conference to be held later this year to discuss alternatives.

0.2 Detail

Just days after the end of the student protests in Taipei against the Cross-Strait Services Trade Agreement, the streets were once again occupied by thousands of protesters. This time, they were demanding that the authorities stop the construction of Taiwan’s fourth nuclear power plant (N4). On 27 April, they occupied the city’s main thoroughfare, forcing police to use water cannons to disperse them before the Monday morning rush hour.

The demonstration came days after Lin Yi-hsiung, former Chairman of the opposition Democratic Progressive Party (DPP), started a hunger strike in protest against N4. The 72-year-old was later hospitalised and forced to abandon his protest.

In response, the Administration announced they would halt construction of N4 and hold a referendum before the facility starts operations. The first reactor is complete (but fuel rods have not yet been introduced) and will be sealed off after completion of safety checks. The second reactor is 91% complete but construction will be halted indefinitely.

To date, N4 has cost Taiwan NTD 284.8 billion (GBP 5.7 billion). On 29 April the Administration confirmed a National Energy Conference will take place in late August or early September to discuss possible energy alternatives if construction is discontinued indefinitely. N4 was intended to deliver 6% of Taiwan’s power, and failure to complete it could result in power shortages in the future .
No timetable has been set for the referendum, which remains controversial. The DPP has been seeking to revise Taiwan’s Referendum Act on the grounds that its current rules make it almost impossible to pass a proposal (half of all eligible voters must take part, and half of those who do must approve of the proposal). DPP Chairman Su Tseng-chang has proposed that the threshold be lowered to participation by 25% of eligible voters, but the Administration refuses to budge on this issue.

Three US-built nuclear power plants are currently in operation in Taiwan, accounting for around 18% of electricity generation. They are scheduled to be decommissioned between 2018 and 2024. However, according to reports the first reactor of the first nuclear power plant might have to be mothballed as early as next year due to the lack of storage space for nuclear waste. This raises the level of uncertainty and urgency even higher in Taiwan’s future plans for electricity supply.

The N4 is being built by Taipower (which says it will go bankrupt if N4 does not open), and debates over its “flawed” design and construction have been played out in the media since 1999. The Fukushima incident in Japan has served to increase the Taiwanese public’s fear of nuclear energy on this earthquake-prone island.

0.3 Comment

The scale of the protests took the Administration by surprise, and they had little option but to back down. It is not clear where Taiwan’s energy policy will go from here. There is already cross-party consensus in Taiwan on getting rid of nuclear power. But the Administration insists that it is necessary for now in order to maintain energy security. If nuclear power is abandoned completely, Taiwan’s economic competitiveness could be affected. The Administration estimates that heavily subsidised electricity prices would rise by 40% because of the need for additional energy imports. Businesses fear that price rises could impact their competitiveness. There is also a potential impact on carbon emissions. Taiwan’s per capita emissions stood at 11.31 tonnes CO2e in 2011, ranking 23rd in the world.

0.4 Disclaimer

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