Taiwan projects 1.7% annual electricity demand growth over next 10 years

TAIPEI (Taiwan News) — Taiwan’s electricity demand is expected to grow at an average annual rate of about 1.7% over the next 10 years, the Ministry of Economic Affairs said.

The forecast factors in AI development, semiconductor industry expansion, US tariffs, and energy-saving initiatives. While demand from AI and emerging technologies remains strong, some traditional industries are slowing production due to tariffs, limiting overall electricity demand growth.

In the first half of the year, Taiwan’s economy grew 6.75%. However, electricity consumption fell 1.1% compared with the same period last year.

Deputy Director-General of the Bureau of Energy’s Electricity Division, Lee Chun-li (李君禮), noted this rare divergence reflects uneven growth across sectors.

He predicted total electricity consumption for this year would be roughly on par with last year. In 2024, strong demand for AI, high-performance computing, and cloud services boosted electronics and semiconductor production, driving total electricity consumption to 283.85 billion kilowatt-hours.

In the first half of the year, electricity use in information and technology and semiconductors rose nearly 10%. Energy-intensive industries such as steel and cement declined.

On the supply side, power development has faced delays. A malfunction at the Kaohsiung Hsinta Power Plant postponed commissioning of its new Unit 2 by six months.

Construction schedules for new gas units at Taichung, Tongxiao, and Dalin plants are being reevaluated, along with private gas projects at Guoguang and Mailiao. Net gas capacity is projected to increase by 12.2 gigawatts, or 12.2 billion watts, between this year and 2034.

The government aims to source 20% of electricity from renewables by next year and 30% by 2030.