Taiwan's Energy Transition and Green Energy Industries

30-Second Overview: Taiwan is in the middle of the biggest energy transition in its history. In 2024, renewable energy rose above 11.6% of total electricity generation for the first time. Solar photovoltaics contributed the most, producing 14.9 billion kWh, while wind generation grew 66%. The government has committed to net-zero emissions by 2050 and aims to reach 20 GW of solar capacity and 13.1 GW of offshore wind by 2030. This is not just a policy adjustment. It is a broader remake of Taiwan's industrial structure and a major opening for technological innovation.

Key terms: 2050 net-zero transition, offshore wind, solar photovoltaics, energy security, the green energy supply chain

Why It Matters

The energy transition is one of Taiwan's most important long-term strategic projects. As an island economy, Taiwan imports 98% of its energy, so energy security is inseparable from national security. As climate change intensifies and pressure to decarbonize grows around the world, Taiwan has to balance energy security with environmental sustainability.

Just as importantly, the transition is creating new industrial opportunities. From offshore wind marine engineering and solar panel manufacturing to energy storage systems and smart grids, these sectors are becoming new drivers of the Taiwanese economy. As manufacturers face rising carbon costs, access to green electricity is becoming essential infrastructure for staying competitive globally.

The Context Behind the Energy Transition

The Nuclear Policy Pivot

The 2011 Fukushima nuclear disaster forced Taiwan to rethink its nuclear policy. After President Tsai Ing-wen took office, the government adopted a "nuclear-free homeland" target for 2025, under which the country's first three nuclear power plants would be retired according to law, while the unfinished Fourth Nuclear Power Plant would remain mothballed. The decision has remained controversial, but it also pushed Taiwan to speed up the development of alternative energy sources.

The Global Net-Zero Imperative

Since the Paris Agreement took effect, more than 130 countries have pledged to reach net-zero emissions by 2050. The European Union's Carbon Border Adjustment Mechanism (CBAM) is set for full implementation in 2026, putting direct carbon-cost pressure on Taiwan's export industries and pushing both government and business to move faster on decarbonization.

Industrial Competitiveness Demands

In response to pressure from international customers, major technology companies such as TSMC and Foxconn have pledged to use 100% renewable electricity. Under the RE100 initiative, access to green power has become essential infrastructure if Taiwan wants to remain competitive as a global manufacturing hub.

The Current State of Renewable Energy Development

Overall Growth Trajectory

According to the Energy Administration under the Ministry of Economic Affairs, Taiwan's total installed renewable energy capacity reached 21,067 MW (21.07 GW) in 2024, a substantial increase from 2023. The breakdown was as follows:

• Solar photovoltaics: 14,281 MW (68%), up 15.01% year-on-year
• Wind power: 3,905 MW (19%), up 45.30% year-on-year
• Conventional hydropower: 2,123 MW (10%)
• Other (biomass, waste-to-energy, geothermal): 758 MW

Renewables accounted for 11.6% of total power generation in 2024, the first time they crossed the 10% threshold. In 2016, the figure was just 4.8%.

Solar Power Leads the Way

Taiwan's subtropical climate gives it abundant sunlight, making solar photovoltaics the main driver of renewable growth. In 2024, solar generation reached 14.9 billion kWh, accounting for 45.1% of all renewable output.

A diversified deployment model:

• Rooftop systems: Installed on homes and factories; new construction is increasingly required to include solar panels
• Ground-mounted systems: Large-scale solar farms, but limited by scarce land availability
• Floating systems: Deployed on reservoirs, flood-detention basins, and fish ponds
• Agrivoltaics (nóngyè gòngshēng 農電共生): Combining agricultural production with solar generation to create dual revenue streams

An integrated supply chain: Taiwan possesses a complete solar value chain—from silicon wafers and solar cells to module assembly. Companies such as Motech, United Renewable Energy (URE), and Giga Solar are competitive in international markets.

Offshore Wind's Rapid Rise

The Taiwan Strait is widely regarded as one of the best offshore wind corridors in the world, thanks to its strong and stable wind resources. Offshore wind has therefore become the flagship sector of Taiwan's energy transition.

A three-stage development strategy:

• Demonstration incentive phase: Early pilot projects including Formosa 1 and Taipower Phase 1, totaling approximately 238 MW
• Potential site phase: Entry of large developers; approximately 5.7 GW of capacity, with projects coming online from 2023
• Block development phase: The first round of competitive selection was completed in 2023—five wind farms totaling 2.335 GW, expected to be grid-connected in 2026–2027

Localizing the supply chain: The government requires offshore wind developers to meet local-content targets, driving the growth of Taiwanese marine engineering, turbine component manufacturing, and operations and maintenance services. Traditional heavy-industry firms such as Century Iron and Steel, China Steel, and CSBC have successfully pivoted into the offshore wind sector.

The Green Energy Ecosystem

Systems Integration and Engineering Services

Tatung and Shihlin Electric, two long-established electrical equipment manufacturers, have repositioned themselves as green energy systems integrators, offering turnkey engineering services for solar projects. Chung-Hsin Electric & Machinery and Huacheng Electric specialize in grid-connection equipment and substation systems.

A New Marine Engineering Industry

Offshore wind has catalyzed an entirely new Taiwanese marine engineering sector:

• CSBC-DEME Wind Engineering (CDWE): Construction and operation of offshore wind installation vessels
• Century Iron and Steel: Manufacturing underwater foundations, and now one of Asia's major suppliers
• China Steel: Tower manufacturing and marine engineering support

The Rise of Energy Storage

The intermittent nature of renewable energy has driven rapid growth in the energy storage sector:

• Delta Electronics: Integrated energy storage system solutions
• Industrial Technology Research Institute (ITRI): Battery technology R&D and system validation
• Chunghwa Telecom: Smart grid and energy management platforms

The Green Power Trading Market

Taiwan launched a green power trading market in 2021, allowing companies to purchase renewable energy certificates directly from renewable power producers. The Bureau of Standards, Metrology and Inspection handles certificate issuance, while Taipower provides wheeling services. Together, they form a functioning green power trading ecosystem.

Technology Innovation and International Collaboration

Floating Solar

Taiwan has actively developed floating solar for reservoirs and other bodies of water, including systems engineered to withstand typhoon conditions. Companies such as Solartech Energy and Chenya Energy have deployed large floating solar installations on reservoirs and flood-detention basins.

Floating Offshore Wind

To access deeper offshore sites, Taiwan has begun planning for floating offshore wind technology. ITRI is collaborating with international partners to develop floating turbine platforms suited to Taiwan's sea conditions.

Hydrogen Technology

In line with its 2050 net-zero goal, Taiwan has also begun laying the groundwork for a hydrogen industry:

• CPC Corporation, Taiwan: Hydrogen production and hydrogen refueling station development
• Formosa Plastics Group: Water electrolysis technologies for hydrogen production
• CSBC: R&D in liquid-hydrogen shipping technology

International Technology Transfer

Taiwan is actively importing world-class expertise:

• Ørsted (Denmark): Offshore wind technology and operating experience
• Macquarie Green Investment Group (Australia): Green energy investment and financing models
• Siemens Gamesa: Wind turbine technology and local manufacturing

Policy Support and the Regulatory Environment

The 2050 Net-Zero Transition Roadmap

In 2022, the government published its "2050 Pathway to Net-Zero Emissions," setting out clear milestones:

• By 2030: Renewables' share of power generation reaches 30% (solar 20 GW, offshore wind 13.1 GW)
• By 2040: Renewables' share reaches 50–70%
• By 2050: Renewables' share reaches 80–100%

Amendments to the Renewable Energy Development Act

The 2023 amendments to the Renewable Energy Development Act strengthened incentives for renewable deployment:

• Simplified permitting and administrative procedures
• Higher feed-in tariffs for renewable energy
• Legal foundation for the green power trading market
• Mandatory solar installation requirements for new buildings

Industry Support Programs

The Bureau of Energy, MOEA is driving a range of support initiatives:

• Green Energy Technology Industry Innovation Initiative
• Offshore Wind Industry Linkage Guidelines
• Two-Year Solar Photovoltaic Promotion Plan
• Energy Storage System Subsidy Program

Green Finance Support

The National Development Fund and the Small and Medium Enterprise Credit Guarantee Fund provide low-interest financing for green energy industries. The Financial Supervisory Commission (FSC) is also advancing a Green Finance Action Plan that encourages banks to expand green-energy lending.

Challenges and Responses

Grid Stability

As renewable capacity grows, the intermittent nature of these energy sources poses new challenges for grid stability. Taipower is investing in smart grid infrastructure and using demand response and energy storage to maintain balance.

Land Acquisition

Taiwan's limited land makes both solar farms and offshore wind projects politically and socially contentious. Government programs promoting solar in land-subsidence zones and on land unsuitable for cultivation are intended to bring more marginal land into renewable use.

Environmental and Ecological Concerns

Offshore wind development may affect migratory bird routes and marine ecosystems, while solar installations can interfere with farming and aquaculture. Developers are therefore required to conduct environmental impact assessments and adopt ecosystem-sensitive mitigation measures.

Talent Shortage

The rapid growth of the green energy sector has created a shortage of qualified professionals. ITRI and universities have established green energy programs, while the government's "Green-Collar Talent Development Plan" brings together industry and academia to train technical specialists.

Taiwan's International Position and Future Outlook

A Role in the Asia-Pacific Region

Drawing on its deep manufacturing base and technological capabilities, Taiwan plays an important role in the Asia-Pacific green energy market:

• Solar: Silicon wafer and cell technology at a globally leading level
• Offshore wind: Rapidly growing marine engineering capabilities, becoming a key supply-chain node in Asia
• Energy storage systems: Electronics industry advantages translate into competitiveness in systems integration

Opportunities in the Net-Zero Transition

The 2050 net-zero goal will reshape Taiwan's industrial structure and generate new investment and employment:

• Green transformation of traditional manufacturing
• The rise of new green technology industries
• Carbon management services for the service sector
• Green financial products from the banking sector

Directions for Technology Innovation

Looking ahead, Taiwan's green energy industries are likely to move toward more technology-intensive, higher-value-added development:

• Perovskite solar cells: Next-generation high-efficiency solar technology
• Floating offshore wind: Harnessing deep-water wind resources
• Green hydrogen: Producing hydrogen from renewables and developing hydrogen applications
• Carbon Capture, Utilization and Storage (CCUS): Negative-emission technologies

Regional Cooperation Potential

Through technology export and regional partnerships, Taiwan can extend its green energy influence:

• Southeast Asian solar market development
• Japan-South Korea hydrogen technology collaboration
• Australian green energy investment initiatives
• European offshore wind technology exchange

Taiwan's energy transition is full of challenges, but it is also creating industrial opportunities on a scale the country has not seen before. Starting from the structural vulnerability of an island economy that imports nearly all of its energy, Taiwan is using technological innovation and policy support to build a green energy ecosystem that can compete internationally. This is not merely a shift in energy policy. It is a deeper transformation in Taiwan's development model.

References

• Bureau of Energy, MOEA — *Energy Statistics* (2024)
• Executive Yuan — *2050 Net-Zero Emissions Pathway* (2022)
• KPMG, 2024 Green Energy Industry Development Report
• PwC, 2024 Global and Taiwan Power and Renewable Energy Market Report
• National Taiwan University Risk Society and Policy Research Center, Analysis of Renewable Energy Development
• ITRI IEK — *Green Energy Industry Technology Development Report*
• Environmental Information Center, 2024 Electricity and Renewable Energy Statistical Analysis (January 2025)
• National Development Council — *Net-Zero Transition Key Strategic Action Plan*