Power Stocks Surge as Nuclear Power Phase-Out Poses Summer Electricity Supply Challenge in Taiwan

Today, the Taiwanese stock market surged by 552 points, heating up the anticipations for the 520 market. Power stocks, particularly those related to government policy, soared without being impacted by Trump's tariffs. Heavy power stocks such as Shidien (1503) and A-li (1514) were the first to hit the upper circuit limit, while green energy stocks like Fuwei Power (6994), Leshi Green Energy (1529), and Cloud Leopard Energy (6869) also reached their limits.
This month marks the complete phase-out of nuclear power, as the operating license for Nuclear Power Plant No. 3's Unit 2 will expire on May 17. Taipower noted that Unit 2 has operated for 40 years and is due for retirement. The sources of replacement electricity have already been planned, with new gas units such as Datan Unit 7, Xingda New Gas Units 1 and 2, and Taichung New Gas Unit 1 expected to provide a total of 4.813 million kW, exceeding the 951,000 kW capacity of Unit 2.
Taipower's Vice President Tsai Chih-Meng stated that looking out to 2033, the planned larger units by the Ministry of Economic Affairs will lead to a supply of 17.86 million kW post-retirement, with an estimated load of 11.5 million kW, ensuring that Taipower has ample capacity. "Supply is certainly not an issue," he assured.
Although nuclear plants provide zero-carbon power, will carbon emissions rise after their retirement? Tsai noted that since 2016 to 2024, carbon emissions have been steadily decreasing, and with the retirement of nuclear power this year, an increase in renewable energy and gas replacing coal will continue to reduce carbon emissions per kilowatt-hour.
Regarding electricity prices of concern to the public and industry, Tsai emphasized that there will not be any price increase in the short term, even with the retirement of the nuclear unit. The electricity price set by the April pricing committee for the period from April to September remains unchanged, while the October pricing will be decided by the committee at that time.