The precarious finances of Taiwan¡¯s sole electricity utility are threatening the island¡¯s clean energy ambitions, tarnishing its attractiveness as a manufacturing hub for the world¡¯s biggest chipmakers and even adding to its vulnerability in the event of a conflict with China.
Taiwan Power Co. is forecasting another massive loss in 2023 and doesn¡¯t see much of an improvement this year. The state-owned company, known as Taipower, has been unable to fully pass on higher costs for gas and coal to customers due to political pressure to keep power prices low. It¡¯s also made a bet on offshore wind, a renewable technology that¡¯s facing difficulties across the world as costs and delays increase.
If Taipower can¡¯t make sufficient progress on clean-energy generation, the island could potentially lose some of its allure as a destination for chip manufacturing. Taiwan Semiconductor Manufacturing Co. (TSMC) ¡ª the world¡¯s largest chipmaker that supplies the likes of Apple and Nvidia ¡ª has a target of using 100% renewables by 2040.
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