Overview
Taiwan relies on imports for over 95.8% of its energy needs. As part of its energy transition, the island has recently decommissioned its last nuclear power plant and aims to achieve a power generation mix of 50% natural gas, 27% coal, and 20% renewables by the end of 2026.
To support this transition and the nuclear-free policy, Taiwan is constructing new liquefied natural gas (LNG) receiving terminals and storage tanks, expanding its natural gas power generation capacity, and developing solar and offshore wind power projects.
As of May 17, 2025, all of Taiwan’s nuclear power plants had been decommissioned. However, in response to growing public and industrial demand—particularly from the manufacturing sector—Taiwan Power Company (TPC) is now preparing to restart two of the three nuclear power plants, Kuosheng and Maanshan, amid ongoing political uncertainty.
Table 1: Electric Power Equipment Market: Unit: US$ thousands
Year | 2022 | 2023 | 2024 | 2025 |
Total Market Size* | $3,910,564 | $3,992,686 | $4,164,371 | $4,297,631 |
Total Local Production | $7,355,035 | $7,509,491 | $7,832,399 | $8,083,036 |
Total Exports | $10,893,034 | $11,121,788 | 11,600,025 | $11,971,226 |
Total Imports | $7,448,347 | $7,604,762 | 7,931,767 | $8,185,583 |
Imports from the U.S. | $1,669,221 | $1,704,274 | $1,777,558 | $1,834,440 |
Exchange Rate: New Taiwan Dollars per U.S. Dollar | 29.78 | 30.55 | 32.11 | 29.30 |
* Total Market Size = (Total Local Production)
Sources: Total Local Production: Taiwan Ministry of Economic Affairs; Total Exports: Customs Administration, Taiwan Ministry of Finance; Total Imports: Customs Administration, Taiwan Ministry of Finance; Imports from U.S.: U.S. Census Bureau; Exchange rates: U.S. Treasury Department
Leading Energy Equipment Sub-Sectors:
Combined-cycle natural gas-fired power generation equipment.
Nuclear decommissioning and decontamination services and technology
Liquified natural gas receiving tanks and regasification construction services
Leading Energy Equipment Sub-Sectors:
Offshore wind turbines and floating platforms
Solar panels
Power transmission, substation and grid-connection technology and equipment
Energy efficient products
Geothermal and ocean energy power equipment
Battery storage technology and equipment
Smart grid and energy storage technology and products
Carbon capture, storage and utilization equipment and technology
Export Opportunities
TPC, CPC Corporation (CPC), and independent power producers (IPPs) are the main sources of procurement in the Taiwan energy equipment market. TPC, a state-owned trading enterprise, owns Taiwan’s national grid. CPC, a state-owned enterprise, is the main oil and LNG supplier in Taiwan.
In the coming years, TPC will focus on replacing its coal-fired and oil-fired generators with LNG combined-cycle gas turbines, renovating, adding transmission lines and decentralized power grids, and restarting the Kuosheng and Ma-an-shan Nuclear Power Plants. IPPs that use coal fire generators will follow suit. Taiwanese demand for combined-cycle gas turbines in Taiwan will increase, creating an opportunity for U.S. exporters.
Equipment procurement in Taiwan’s renewable energy market is dominated by IPPs. In this market, Taiwan will continue to tender 1.5GW of offshore wind projects each year until 2035. In addition, Taiwan’s domestic geothermal and ocean power equipment supply chain is underdeveloped, creating a market opportunity for U.S. companies in this industry. To encourage investment in this area, Taiwan is offering preferential tariffs to energy equipment exporters in the geothermal and ocean energy space.
To support the expansion of LNG power generation in Taiwan, CPC is expanding its LNG receiving and storage infrastructure. CPC’s demand for LNG storage tanks and Engineering, Procurement and Construction (EPC) services for LNG infrastructure will remain high in the coming years. TPC’s Hsieho Power Plant and Formosa Corporation’s Mai-liao Power Plant will prompt similar demand for LNG receiving and storage infrastructure.
In March 2022, the National Development Council published Taiwan’s Roadmap to Net Zero Carbon Emission by 2050. According to the Environmental Protection Administration in the Executive Yuan, Taiwan’s CO2 emissions are approximately 265 million MT per year. The energy sector is the main contributor to CO2 emissions. To reduce carbon emissions, the Taiwan energy sector will need carbon sequestration equipment and storage sites. Once storage sites in Taiwan are selected, the demand for carbon sequestration, storage, transportation, and EPC construction for CO2 storage will pick up quickly.
Taiwan’s 2019 Government Procurement Act (GPA) requires all official procurement entities and state-owned companies to publicize all procurements valued over NT$1 million ($30,110) on the Taiwan authorities’ e-procurement website. As a state-owned enterprise, all procurements released by TPC must be submitted to this website.