Source: Republic of China Taiwan
On June 18, the Ministry of Economic Affairs (MOEA) released the “2025 National Electricity Supply and Demand Report”, which provides a review of the electricity supply and demand situation in 2025; taking into account the impact of economic growth, electricity demand from AI data centers and the semiconductor industry, temperature conditions, and the promotion of deep energy saving, the report also forecasts Taiwan’s electricity demand over the next decade (2026-2035). At the same time, the report outlines plans to develop a diversified energy portfolio-aligned with the energy transition policy-to ensure a stable and reliable power supply.
According to the MOEA, electricity consumption in 2025 was driven by the growing adoption of AI and emerging technologies. High-value-added industries such as semiconductors maintained strong production momentum, boosting exports of electronic and ICT products while increasing electricity consumption in related manufacturing sectors. However, some traditional industries saw production decline in 2025 due to impact of evolving geopolitical situation and excess production capacity in China. Additionally, deep energy saving, lower overall temperatures, and the impact of multiple typhoons between July and September contributed to a slight decline in total electricity consumption. Compared with 2024, overall electricity consumption decreased by 840 million kWh, or approximately 0.3%. Moreover, thanks to effective dispatching by Taiwan Power Company (Taipower), the percent operating reserve exceeded 10% (indicating sufficient power supply, a “green light” status) for 342 days in 2025. Overall, electricity supply and demand conditions remained stable.
To meet future electricity demand, the assessment takes into account factors such as economic growth, temperature, and additional electricity demand arising from the expansion of the semiconductor industry, data centers and AI technologies, incorporating anticipated deep energy saving outcomes, and projects the average annual electricity demand growth rate from 2026-2035 to be approximately 2.5%. This is the second-highest projected growth rate among all historical forecasts and exceeds the projected growth rates of neighboring Asian countries such as Japan and South Korea.
In terms of the electricity supply, solar photovoltaic generation provides ample power during the day, and the primary supply challenge has shifted from daytime to the peak electricity consumption period at night. Maintaining a stable electricity supply during these periods requires the deployment of high-efficiency gas-fired power generation units combined with energy storage systems and dispatching of hydropower. Under the current plan, Taipower will construct new gas-fired units at its Taichung, Hsinta, Tunghsiao, Talin, and Hsieh-ho power plants. Additionally, the gas-fired power projects of Independent Power Producers (IPPs), such as Kuo Kuang and Mai Liao power plants, have been incorporated into the supply plan. These newly added gas-fired installed capacity is expected to add approximately 26 GW between 2026 and 2035, which will accommodate the long-term growth in power demand and ensure a stable power supply.
Recent situation in the Middle East have increased uncertainty about the global energy supply. To ensure stable power supply, countries around the world are strengthening the reserve capacity and operational flexibility of their power systems. For example, Japan has established reserve power generation arrangements by designating eligible existing thermal power units as backup resources. In response to risks affecting the international energy supply, South Korea has also relaxed operational restrictions on coal-fired power plants and postponed the decommissioning of certain coal-fired generation units. Considering that international energy markets remain unstable due to geopolitics in the Middle East, to reduce the risk of disruption to energy supplies or power system operations due to unforeseen events, the MOEA has instructed Taipower to ensure that contingencies are in place before decommissioning any type of generating unit. Whenever possible, available energy facilities should be retained to enhance operational flexibility and strengthen the resilience of the power supply system.
Regarding nuclear energy and the promotion of new energy technologies, the MOEA stated that it will approach issues related to the potential restart of nuclear power plants prudently, taking into account safety, legality, and public communication. The MOEA will also maintain an open mind concerning new nuclear technologies, actively monitor international developments and engage with new energy sources and technologies, and continue to evaluate diverse energy options suitable for Taiwan.
Lastly, the MOEA reiterated that Taipower and private enterprises have actively developed new power generation resources over the past decade (2016-2025) to ensure a stable electricity supply. These achievements include cumulative increases of approximately 19 GW in renewable energy installed capacity and 14 GW in thermal installed capacity respectively. Looking ahead, in light of evolving international energy conditions, domestic economic development, and growing electricity demand driven by AI applications, the government will continue to promote energy transition with the following objectives: maintaining a stable electricity supply, ensuring energy security, and achieving steady carbon reduction. The government aims to enhance the operational flexibility of the power system through diversified generation dispatch, strengthened grid resilience, and the preservation of necessary reserve resources, and hopes for continued support from all sectors to steadily advance the energy transition.
Spokesperson:
Deputy Director General Chen, Energy Administration, Ministry of Economic Affairs
Tel: +886-2-2775-7700 / +886-919-998-339
Business Contact:
Director Hsia, Energy Administration, Ministry of Economic Affairs
Tel: +886-2-2775-7753 / +886-910-668-295