The Ministry of Economic Affairs (MOEA) has raised serious concerns over a nonbinding proposal passed by Taiwan’s opposition-led Legislature, which calls for a complete ban on coal usage at the Taichung Power Plant by 2028. While the proposal is not legally enforceable, the ministry argues that such an early phase-out could have severe consequences for Taiwan’s energy stability and regional economic competitiveness, particularly in Taichung — a growing hub for high-tech industries.
The MOEA’s warning follows a Tuesday resolution from opposition lawmakers, who demanded that all 10 coal-fired generators at the state-run Taichung Power Plant be decommissioned by 2028. This demand moves the phase-out six years ahead of the government’s existing 2034 target.
Backdrop: A Critical Power Source for Central Taiwan
Since 2019, Taichung’s electricity demand has consistently exceeded local generation capabilities. The coal-fired Taichung Power Plant has become a crucial source of electricity — not only for Taichung itself but also for balancing national grid stability. In 2023 alone, the city saw a shortfall of 4.5 billion kilowatt-hours, which was met through power generated in other counties. MOEA argues that pulling coal generation prematurely without having fully operational gas and renewable alternatives could exacerbate regional power shortages and even threaten blackouts.
Government’s Phased Approach to Transitioning Away from Coal
Taiwan has committed to net-zero carbon emissions by 2050. In support of this, the MOEA has developed a two-phase plan to gradually replace coal-fired units at Taichung with gas-fired alternatives and renewable energy:
- Phase 1 (2025–2026):
Two new gas-fired units will be launched. Coal Units 1 and 2 will be decommissioned, while Units 3 and 4 will be retained as emergency backup. - Phase 2 (2031–2034):
Additional gas units will be added yearly. Coal Units 3 and 4 will be shut down by 2031, and the rest will gradually transition into backup or be retired entirely by 2034.
This strategy aims to maintain electricity reliability while reducing emissions in a balanced, technology-ready manner.
Environmental and Health Arguments by the Opposition
The opposition parties, citing air quality concerns, argue that Taichung residents have long borne the brunt of pollution due to the plant’s operations. They point to the upcoming completion of private gas-fired projects, such as the Chung Chia power plant, as proof that clean alternatives will be available soon.
While public pressure over pollution is understandable, experts caution against overly ambitious timelines, noting that the transmission infrastructure for private gas plants may not be fully ready, and energy storage capacities remain limited.
MOEA’s Position: Coal Use Is Already Declining
MOEA shared updated data to highlight the government’s progress:
- Coal consumption at Taichung dropped to 12.08 million tons in 2024, the lowest in history and over 6 million tons less than in 2014.
- Air pollutants from Taipower-operated plants fell by 70% since 2016.
- Greenhouse gas emissions per kilowatt-hour dropped from 0.554 kgCO₂e in 2016 to 0.474 kgCO₂e in 2024.
These metrics, according to MOEA, underscore that Taiwan is on track to meet its environmental goals — without jeopardizing grid reliability.
Impact on Investment: A Warning for the High-Tech Sector
Taichung is increasingly becoming a hotbed for semiconductor manufacturing, precision machinery, and AI-driven startups. However, high-tech firms are energy-intensive and cannot risk power shortages. MOEA stated that a rushed coal exit could “undermine the willingness of high-tech businesses to choose the city as an investment location.”
Power outages, price spikes, or unstable supply could deter foreign direct investment and affect Taiwan’s strategic competitiveness in global supply chains.
Looking Ahead: Toward a Greener Grid Without Risk
The MOEA emphasized continued investments in:
- Renewable energy (solar, offshore wind)
- Energy storage systems
- Carbon capture technologies
- Hydrogen and ammonia as alternative fuels
While Taiwan remains committed to a green transition, the MOEA insists that “policy realism” must accompany “policy ambition” to ensure that energy, environment, and economy grow in unison.
✅ FAQs
Why is the MOEA opposing the 2028 coal ban at Taichung?
Because Taichung’s energy needs outpace its supply, and the plant remains vital. Premature closure may result in power shortages and scare off high-tech investors.
What is the government’s current plan for phasing out coal at the plant?
The government plans to replace coal-fired units with gas-fired units in phases, completing the transition by 2034.
Has Taiwan made progress in cutting coal use and emissions?
Yes. Coal use is at its lowest in a decade, and emissions and air pollution from power plants have dropped by over 70%.
Is there enough renewable energy to replace coal by 2028?
Not yet. Renewable generation and energy storage are still scaling up. Cutting coal without alternatives risks blackouts and economic losses.
Are there any private gas plants coming online soon?
Yes, the Chung Chia gas plant is expected to launch soon, but experts say full grid readiness may still take time.
