Taiwan Faces Spike in Electricity Demand Due to Rise of AI

Energy experts are predicting a 13% increase in Taiwan's energy demand by 2030, largely due to the growth of the AI industry.

Transcript

00:00Taiwan has a power problem, energy-intensive industries and a reliance on imports to keep

00:05the lights on are leaving energy experts trying to come up with solutions to an expected boom

00:10in energy consumption within the next decade.

00:13The new power generation plan, including the power grid and the power plant, is based on

00:19the high penetration rate of renewable energy, so we need to build a new energy storage system.

00:24I think these three things need to be built in time.

00:29Based on the electricity consumption plans of major manufacturers and investment projects,

00:34Taiwan's electricity consumption is expected to jump by 13% by 2030.

00:40Much of that demand comes from AI technology, which Taiwan's growing semiconductor industry

00:44relies heavily on.

00:46AI's demand for electricity is expected to increase eightfold between 2023 and 2028.

00:52The government has also been promoting the switch to electric vehicles, causing more

00:56demand.

00:57All of that while the country is shutting down its few remaining nuclear power plants.

01:02Experts say the government will have to come up with innovative solutions to address the

01:06challenges early on.

01:07We should consider 2030 by 2024.

01:10This is a good thing.

01:12We need to be well-prepared to face the challenges of 2030.

01:19One of those potential solutions is renewable energy.

01:22Taiwan has been expanding its solar and offshore wind power capacity.

01:26But it's not enough to meet peak demand.

01:29Renewable energy is only expected to make up 20% of the total power supply by the end

01:33of 2026.

01:34This part is underestimated.

01:35At least 15% should be estimated.

01:36This would be more reasonable.

01:37There is no way to make up for it in terms of fuel.

01:38If you look at renewable energy, it is lagging behind again and again.

01:39In the case of lagging behind again and again, it is even more unlikely to make up for it.

01:49With electricity essential for both the country's top industries and its people, it's a race

01:54against time for experts to come up with a solution before demand outstrips supply.

01:59Andy Hsu and Tiffany Wong for Taiwan Plus.