Taiwan’s coal-fired and renewable power generation both reached record highs in 2025, but renewable energy remained well below the government’s transition targets, according to official energy statistics.
Data from the Ministry of Economic Affairs’ latest monthly energy report showed natural gas accounted for 47.8 per cent of electricity generation in 2025, coal 35.4 per cent and renewables 13.1 per cent. Nuclear power made up just 1.1 per cent after the island’s last reactor shut down in May.
Coal-fired plants generated 102.2 billion kilowatt-hours (kWh) of electricity last year, while renewable sources produced 37.8 billion kWh, both record highs.
Taiwan’s energy transition strategy had aimed for a “50-30-20” power mix by 2025 – 50 per cent natural gas, 30 per cent coal and 20 per cent renewables.
It had initially set 2025 as the year to reach 20 per cent renewable electricity. The government revised the deadline in 2024 to November 2026, but economy minister Kung Ming-hsin said last month the target may still not be met this year.
Installed renewable energy capacity also fell short of expectations.
By the end of 2025, Taiwan had installed 15.5 gigawatts (GW) of solar capacity, well below the 20GW target. Offshore wind capacity reached 3.6GW compared with a goal of 5.7GW, while geothermal power stood at just 7 megawatts (MW) against a 20MW target.
Chao said ground-mounted solar power remains the biggest bottleneck. Taiwan had aimed to install 12GW of such capacity by 2025 but has achieved only about half of that so far.
If regulatory and land-use hurdles for solar projects combined with aquaculture can be resolved, the gap between current capacity and policy targets could narrow, he said, adding that the agriculture ministry would play a critical role.
One proposal discussed by the presidential climate change committee involves encouraging farmers to replace betel nut plantations – widely criticised for their environmental and health impacts – with solar installations.
As Taiwan prepares for local government elections at the end of 2026, Chao urged mayoral candidates to adopt responsible green electricity policies.
Local governments are competing to attract major industrial investments, but supporting the energy transition is essential to maintaining renewable power supply chains demanded by large corporations, he said.
“Rather than obstructing green energy development, candidates should present responsible policies for expanding renewable power,” he added.
Chao also called on large corporations to play a more active role in developing the renewable energy market.
About two-thirds of the renewable electricity used by Taiwan Semiconductor Manufacturing Company, the world’s largest contract chipmaker, currently comes from overseas sources, he said, while companies such as Intel rely largely on domestic renewable energy procurement in the United States.
“If companies only focus on bargaining for lower prices, the renewable market will struggle to grow,” Chao said. “But if they participate in building the system, more green power can enter the market.”
