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Why the US Won’t Be Able to Help Build Taiwan’s Nuclear Future

Washington itself hasn’t solved the problems that fed into Taiwan’s nuclear phase-out: waste storage and high costs.

By Benjamin Yang and M.V. Ramana, May 26, 2025, https://thediplomat.com/2025/05/why-the-us-wont-be-able-to-help-build-taiwans-nuclear-future/

When the 40-year operating license of Taiwan’s last remaining commercial nuclear reactor expired on May 17, the country realized its nuclear phase-out policy after decades of politicized debates. 

If anything, though, the imminent decommissioning of the Maanshan Nuclear Power Plant’s second reactor has only fueled another round of heated discussions on the potential role of nuclear power in Taiwan’s energy future.

On May 13, the Legislative Yuan – Taiwan’s national legislature, where opposition parties currently hold a majority – passed amendments to the Nuclear Reactor Facilities Regulation Act, allowing nuclear power plant operators to apply for a 20-year license renewal beyond the original 40-year cap and easing restrictions on their restarts. In the meantime, it also passed a proposal from the Taiwan People’s Party (TPP) for a referendum on restarting the Maanshan plant, which is now set to take place in August. 

Such renewed interest in nuclear energy is a result of a few compounding factors: power shortage concerns amid grid-induced blackouts over the past few years and growing power demands from the semiconductor and AI industries; rising electricity prices that pro-nuclear groups have framed as a result of phasing out nuclear; stalled momentum in renewable energy development; and national security threats of a naval blockade from China. 

At the same time, there are several reasons why nuclear power may not really address these questions, most notably the high costs and long construction times of building nuclear plants. Meanwhile, proponents of the nuclear phase-out point to the risks of accidents associated with nuclear reactors and the lack of a demonstrated solution to managing radioactive wastes of different kinds produced by the nuclear fuel chain.

Amid this domestic debate in Taiwan over nuclear power, Director Raymond Greene of the American Institute in Taiwan, the de facto U.S. embassy, added a new twist. In a recent interview, he announced that the United States stands ready to introduce “existing and new technologies such as SMRs (small modular reactors) and to help Taiwan address its nuclear waste storage challenges.” Can U.S. support on SMRs and nuclear waste storage help with the challenges that led Taiwan to phase out nuclear power?

The problem with nuclear waste is two-fold: a shortage of short-term storage capacity at some sites, and the complete absence of a long-term option. Currently, Taiwan has over 21,500 spent fuel rods from almost five decades of operation; all but 112 of these are stored on-site, either in their respective reactor cores or spent fuel pools. Only a portion from the Chinshan Nuclear Power Plant has been moved to a dry storage facility. In July 2021, Taiwan Power Company, the state-owned utility that owns and operates all of Taiwan’s nuclear power plants, had to take unit 1 of the Kuosheng Nuclear Power Plant offline five months before the expiry of its operating license due to the lack of used fuel storage capacity. These are just the problems with short-term storage. In the long term, there is just no plan: the government has yet to create regulations governing the disposal of high-level waste. 

With local government concerns over wastewater runoff pollution hampering progress on constructing dry storage facilities and a final disposal repository nowhere in sight, creating more nuclear waste through extensions, restarts, or even building new SMRs will only aggravate this unsolved issue. 

The United States has no long-term plan for its nuclear waste, either. Yucca Mountain, the site selected back in 1987 under the 1982 Nuclear Waste Policy Act, proved to be technically problematic, because it had an oxidizing environment and, despite being advertised as a very dry site, proved to allow seepage of lots of water. No alternative site has been seriously considered since Yucca Mountain was picked, although high level committees like the Blue Ribbon Commission set up by President Barack Obama have recommended setting up a process to find a new site. In short, the United States has no successful experience to point to if it intends to help Taiwan with its nuclear waste. 

The story is similar with SMRs, the other part of the offer from Greene. Despite much media attention and hype, the United States has so far not constructed a single small modular reactor. In terms of planning, the most advanced SMR project was proposed by the Utah Associated Municipal Power System. Announced in 2015, the UAMPS project was initially expected to start operations “around 2023” at an “overnight cost” of $3 billion. The estimated costs of the project subsequently rose to $6.1 billion, and finally $9.3 billion in 2023. That last figure was for a mere 462 megawatts of electricity capacity. Later that year, the project was canceled because of a lack of demand. 

When viewed in terms of the cost per unit of power capacity (i.e., dollars per megawatt), the cost of the UAMPS project was higher than even the most expensive nuclear power plant built in the United States, the Vogle project in Georgia, which cost $36.8 billion. This is to be expected. Small modular nuclear reactors, which produce less than 300 megawatts of power as compared to the roughly 1,000 megawatts for the typical reactors that have been constructed in recent decades, are more expensive per unit of power capacity due to diseconomies of scale. 

The underlying reason is that the cost of constructing or operating a nuclear reactor is not directly proportional to the amount of power it is designed to generate. SMRs, therefore, start off with an economic disadvantage and will further undermine the financial viability of nuclear plants. 

In the United States, nuclear plants are the most expensive way to supply electricity and building SMRs will make nuclear power even less competitive, especially in comparison to solar and wind energy, with or without electricity storage. No wonder renewables constitute the vast majority of new electricity installations in the United States. Also growing rapidly are energy storage technology, geothermal technologies, and grid resilience innovations such as virtual power plants. If the U.S. is serious about addressing Taiwan’s energy situation, maybe these are the technologies it should be offering.

In the end, the decommissioning of Taiwan’s final nuclear reactor marks a critical crossroads in its energy transition. Every choice Taiwan makes at this juncture would need to tackle the multitude of challenges that come with balancing rising demands, economic development, national security, climate action, and public safety. With the storage solutions for existing nuclear waste yet to appear and the costliness of constructing SMRs both in terms of time and capital, nuclear is unable to serve as a safe, cost-effective, and timely climate solution – even with U.S. support. 

May 28, 2025 Posted by Christina Macpherson | politics international, Taiwan | Leave a comment