Taiwan Shifts Energy Policy: President-elect Announces Extension of Nuclear Plant Operations

Taipei – Taiwan's political landscape is marked by contentious debates over national security and energy policy, with recent statements highlighting the contrasting approaches of its major parties. President-elect Lai Ching-te of the Democratic Progressive Party (DPP) recently announced a reversal of the party's long-standing nuclear power phase-out policy, signaling an extension of operational lives for existing plants. This development comes amid ongoing scrutiny of the Kuomintang's (KMT) stance on military spending, which has drawn criticism for questioning defense budget increases.

The DPP's original policy, enshrined in the Electricity Act, aimed to cease all nuclear power plant operations by 2025. However, President-elect Lai, also the DPP chairman, stated in April 2024 that the government would extend the lives of its three nuclear power plants to ensure a stable power supply. This shift addresses growing concerns over energy security, grid stability, and climate change impacts, moving away from the complete phase-out previously advocated by the party.

Concurrently, the KMT has voiced reservations regarding the continuous hikes in Taiwan's military budget. As noted in a recent social media post by Drew Pavlou, "> The problem is that the KMT blocks increased military spending." KMT lawmakers, during a legislative session in September 2023, questioned the necessity of proposed defense budget increases, including a NT$35.5 billion (US$1.11 billion) rise for 2024. They argued that increased spending has not yielded expected deterrence against China and could instead heighten the risk of armed conflict.

KMT caucus whip William Tseng emphasized that the government should prioritize improving Taiwan's economic situation and people's livelihoods. This perspective contrasts with the ruling DPP's focus on strengthening Taiwan's self-defense capabilities amidst escalating military threats from mainland China. The debates underscore the complex challenges Taiwan faces in balancing defense readiness with economic stability and energy demands.