Taiwan is moving towards the revival of nuclear energy, just a year after shutting down its last reactor, in response to rising LNG prices and increasing dependence on imported gas. Taipower has proposed a plan to resume operations at the Maanshan nuclear power plant, and regulatory reviews are underway.
History of Reactor Closures and LNG Dependence
Taiwan shut down its last operational reactor in May 2025, which was part of a phased withdrawal from nuclear energy under the management of the Democratic Progressive Party (DPP). This policy was adopted to reduce coal use from 45.4% in 2015 to 30% by 2026. As a result, the share of natural gas in electricity generation has increased from 30.6% in 2015 to 50.5% by July 2026.
Read more: Retail sales in the United States increase to 1.2 percent
LNG Import Statistics and Economic Effects
Taiwan is fully dependent on LNG imports to meet its natural gas needs, and these imports have been steadily increasing. In 2025, LNG imports reached 23.6 million tons, nearly a 9% increase from the previous year. Since the beginning of 2026, Taiwan has received 16.3 million tons of LNG, which is 6% more than the previous year.
With the onset of the U.S.-Iran war in March 2026 and the blockage of the Strait of Hormuz, Taiwan's dependence on LNG has come with higher costs. LNG prices in Asia have nearly tripled, reaching about $29 per million British thermal units (MMBtu). This situation has put additional pressure on Taiwan's economy and increased public costs.
The Ministry of Energy predicts that Taiwan's electricity demand will increase at an average annual rate of 2.5% over the next decade. Meanwhile, government plans for a $13.3 billion energy package aimed at assisting state-owned enterprises and reducing fuel costs are under review.
The revival of nuclear energy is emerging as a more attractive business option. Under recent legal reforms, reactors with expired licenses can apply for a 20-year license extension. Taipower submitted a request to resume operations at the Maanshan plant in March 2026, and serious reviews began in April.
With the revival of two 951-megawatt Maanshan reactors and two 985-megawatt Kuosheng reactors, nuclear energy production capacity will reach about 3.9 gigawatts. This capacity could significantly reduce the amount of LNG needed by Taiwan and help decrease the country's dependence on LNG imports.
Read more: Natural gas forward prices rise due to unprecedented September heat · U.S. Energy Information Administration reports a 44 Bcf increase in natural gas storage
