On the morning of August 13, President Ma Ying-jeou attended the opening ceremonies of the 2014 Energy Visions Summit, which was organized by the Economic Daily News. Besides explaining the thinking behind the policy to mothball Taiwan's Fourth Nuclear Power Plant, and reiterating the ROC government's strategies and visions for the development of various energies, the president also expressed hope that the discussions by experts and scholars during the conference would serve as reference for the government in its policy-making.
In remarks, President Ma stated that in recent years the international community has placed considerable focus on reducing greenhouse gases and combatting climate change. The Organisation for Economic Co-operation and Development's energy organization, the International Energy Agency, and the United Nations Intergovernmental Panel on Climate Change (IPCC), have both advocated the adoption of diverse and pragmatic means to achieve carbon reduction, he said. These efforts, the president noted, include the use of renewable energies, nuclear power, and carbon capture and storage. The IPCC has even clearly indicated that nuclear power generation is currently one of the most mature types of low-carbon base load power available, he stated.
In discussing the status of nuclear power throughout the world, the president mentioned that a total of 435 nuclear power units are in operation in 31 nations. In addition, except for a handful of nations—such as Germany, Belgium, and Switzerland—that have announced they will discontinue nuclear power by 2022, 2025, and 2034, respectively, most nations intend to continue using nuclear power, he said. The president pointed to data from the World Nuclear Association that indicate some 242 nuclear power units are under construction or in the planning stage, including some in Middle Eastern nations that are oil producers, such as Iran, Saudi Arabia, and the United Arab Emirates. Meanwhile, nations such as Finland and the United Kingdom (UK), which have been aggressively developing green power, and countries such as the United States, Russia, and Japan, all of which have experienced nuclear accidents, have embraced nuclear power because it plays a role in energy diversity and independence, he said. At the same time, the president noted, nuclear power helps to keep costs down while reducing carbon emissions.
President Ma further stated that the United States in June of last year unveiled its Climate Action Plan, which listed the cutting of carbon pollution as an important energy policy and singled out nuclear power as a key source of energy. In addition, he said, in 2008 the UK released its White Paper on Nuclear Power, that served as a policy basis for that nation's continued development of nuclear energy. He added that in April of this year Japan announced its Basic Energy Plan, which designates nuclear power as an important base load energy source. The president mentioned that in July of last year, Japan commenced the enforcement of the New Regulatory Requirements for Light-Water Nuclear Power Plants, and Japan's Nuclear Regulation Authority has received applications from the operators of 19 nuclear power units throughout the nation to undergo safety inspections. He pointed out that on July 16 this year the No. 1 and No. 2 units at the Sendai Nuclear Power Station in Kagoshima Prefecture on Kyushu Island passed safety inspections and it is highly likely that these units will resume operation this autumn.
The president also commented that three years ago Japan was the only country in the world to shutter all of its nuclear power units in the wake of the Fukushima nuclear accident. Over the past three years, however, this policy has had an enormous impact on Japan's balance of trade as well as its electricity rates, economic growth, and CO2 emissions, he said. The president pointed out that last year Japan on average spent 10 billion yen daily on the import of natural gas to fuel traditional thermal power plants, which resulted in higher electricity rates and carbon emissions. In 2013 Japan experienced a rare trade deficit of 11.4 trillion yen (approximately US$114 billion), President Ma noted, adding that this has been the primary factor in the Japanese government's change in its "zero nuclear power" policy. Taiwan should learn from Japan's experience, he said.
Meanwhile, the president mentioned, France's Ministry of Ecology, Sustainable Development and Energy in June of this year announced a new law on energy transition that clearly indicated that France will not abandon nuclear power in the course of its energy transition. President Ma also pointed out that Korea, Taiwan's main industrial competitor, announced a nuclear power development plan last January that calls for more than a 50% increase in installed nuclear capacity by 2035. This decision was taken to reduce greenhouse gas emissions and ensure energy security. Under this plan, installed nuclear capacity in Korea would eventually account for 29% of generating capacity. All these examples show, said the president, that nuclear power will still be an important part of the world's energy mix.
Regarding the mothballing of Taiwan's Fourth Nuclear Power Plant, President Ma said that as an island, Taiwan has an isolated power grid and is unable to import electricity. He noted that Taiwan relies on imports for 98% of its energy and is highly susceptible to the effects of changes in the international energy market. The president went on to say that traditional thermal power plants only account for 38.4% of Taiwan's current generating capacity, which is well short of base load demand. At the same time, however, short- and medium-term difficulties in constructing traditional thermal power facilities have increased at a time when Taiwan's First, Second, and Third Nuclear Power Plants are getting up in age, he remarked. If Taiwan's existing nuclear power facilities are retired according to the existing timetable, Taiwan's excess generating capacity will drop off sharply, he stated, so the question of how to balance supply and demand will be an important challenge for Taiwan in the future.
President Ma also said that Taiwan's electricity demand will continue to grow in response to industrial restructuring, economic development, a rising standard of living, and global climate change, so the "zero growth in electricity demand" policy advocated by some is just not practical. Moreover, nuclear power currently comprises 18.8% of power generated in Taiwan and is produced at an average cost per kilowatt hour of NT$0.72, which is less expensive than any other method of power generation, he said. Also, analysis of the economic impact of nuclear power generation indicates that since the First Nuclear Power Plant commenced commercial operation in 1978 through the end of 2012, nuclear power has already contributed NT$998.6 billion to the National Treasury over this 35-year period. At the same time, nuclear power has provided a stable, long term source of electricity and kept electricity rates low in Taiwan, thus boosting the international competitiveness of local industry.
Discussing the safety of Taiwan's nuclear facilities, the president stressed that Taiwan's power plants have consistently been among the safest in the world over the past three years, and a unit capacity factor ranking compiled by the United Nations' International Atomic Energy Agency that covers all 435 nuclear generation units in 31 nations, put Taiwan in sixth place at 90.4%, exceeding the United States at 88.8%, Germany at 86.6%, Korea at 82.4%, France at 79.5%, the UK at 75.8%, and Japan at 20.1%. He stated that this proves Taiwan's excellence in nuclear safety.
President Ma mentioned that concerns about the safety of the Fourth Nuclear Power Plant have sparked an anti-nuclear movement in Taiwan that has fed public skepticism about the safety of nuclear power, and this, in turn, has triggered concern among domestic and foreign industries about Taiwan's overall investment environment. The president stated that the government has thus had no choice but to make a decision to "mothball the Fourth Nuclear Power Plant after safety inspections and have the public decide by referendum whether the plant will go into commercial operation down the road." President Ma said this policy will hopefully reduce controversy while at the same time maintaining flexibility to respond to energy development issues at home and abroad, thus leaving future generations a chance to decide.
In discussing the government's energy development policy and vision, the president remarked that Taiwan lacks natural resources and has limited environmental carrying capacity. So the government, in promoting a sustainable energy policy, needs to make more efficient use of Taiwan's limited resources, develop clean energy that is environmentally friendly, and ensure continued stability in the power supply, thereby achieving the goal of an "all-win situation" involving energy, environmental protection, and economic growth, he remarked.
President Ma then mentioned that over the past six years, the joint efforts of the government and the public have reduced Taiwan's "energy intensity" by an average 2.46% annually. At the same time, Taiwan's carbon emissions have dropped from nearly 1% of the world's total in 2008 to 0.84% in 2011, while Taiwan's per capita carbon emissions ranking has declined from 18th place to 21st, which proves that Taiwan's energy efficiency has improved considerably. He further commented that because the ROC is not a member of the United Nations, it cannot be party to the United Nations Framework Convention on Climate Change or a signatory to the Kyoto Protocol. Nonetheless, he said, Taiwan has pledged to reduce its greenhouse gas emissions in 2020 to the levels of 2005, and to further lower its emissions in 2025 to the levels last seen in 2000. The president called on all sectors of society to work together to promote industrial transformation, energy conservation, and carbon reduction to reach these goals.
President Ma remarked that on November 3, 2011 the government announced a new energy policy that is guided by the three major principles of "no power rationing, maintaining reasonable power prices, and making good on our pledges to the international community to reduce carbon emissions." The ultimate objective, he said, is to "ensure nuclear safety, gradually reduce reliance on nuclear power, and create a green power and low-carbon environment to become a nuclear-free country step by step." Measures taken so far include the installation of rooftop solar energy panels and the construction of 1,000 land- and sea-based wind turbines, the president mentioned. He added that the government is working to reduce power demand, lower peak power usage, develop new energy technologies, and promote alternative energies to provide industry with a competitive energy environment.
President Ma emphasized that each type of energy has advantages and disadvantages, whether it be coal, oil, natural gas, nuclear, hydro, wind, or solar. In its current situation, Taiwan cannot lightly brush off any possible energy source; instead, it must make every effort to achieve an "optimal energy mix." The factors that should be considered include efficiency, cost, and carbon emissions, but we must also factor in the issues of energy independence and diversity, he said. The president stressed that it is within Taiwan's power to achieve the goal of energy independence, and the purpose of diversification is to spread risk.
President Ma reiterated that in order to spur broad-based, objective, in-depth communication and dialogue so that we can forge consensus and, upon that basis, resolve problems relating to the selection of energy sources and alternatives, the Executive Yuan is planning to convene an open and transparent national conference on energy before the end of this year. This will be an opportunity to engage in professional and rational discussions, the president said. The opinions expressed at the conference by scholars, experts, and representatives from various sectors will be considered to find the most appropriate energy mix and formulate a stable, efficient, clear, and viable energy developmental blueprint, the president concluded.
Among those attending the opening ceremonies of the summit were Industrial Technology Research Institute's Green Energy and Environment Research Laboratories Vice President and General Director (acting) Robert Yie-Zu Hu (胡耀祖), Chung-Hua Institute for Economic Research Chairman Chi-Yuan Liang (梁啟源), Taiwan Semiconductor Industry Association Chairman Nicky C. C. Lu (盧超群), Economic Daily News President Huang Su-juan (黃素娟), City University of Hong Kong President Way Kuo (郭位), Taiwan Power Company Chairman Hwang Jung-Chiou (黃重球), Taiwan Association of Machinery Industry Chairman Hsu Hsiu-Tsang (徐秀滄), and Taiwan Automation Intelligence and Robotics Association Chairman Eric Y. T. Chuo (卓永財).