Nuclear power seems to be becoming popular again, not only in the US, but around the world.
According to Bloomberg, it was reported this morning that Taiwan’s legislature passed a bill on Tuesday that would ease restrictions on nuclear power, signaling a policy shift driven by growing energy needs and rising geopolitical tensions.
According to Legislative Council Speaker Han Kuo-yu, the revised law allows nuclear power plants – whose operating period was previously limited to 40 years – to renew their licenses for up to 20 years at a time, either before or after their expiration date.
Energy security has become critical for Taiwan as the country struggles to reduce its reliance on nuclear power while meeting the growing demands of its chip industry and managing its dependence on imported fossil fuels amid growing pressure from Beijing.
Bloomberg reports that just days before Taiwan’s last reactor is scheduled to shut down on May 17, lawmakers passed a bill that signals a possible return to nuclear power. While the shutdown is underway, the move reflects a global shift back to nuclear power as a low-carbon solution to meet growing demand.
Prime Minister Cho Jung-tai said his cabinet is not opposed to restarting decommissioned reactors if the law is passed, but safety reviews – which state-owned Taipower estimates will take 3.5 years – would delay restarts.
A nuclear power revival could reduce Taiwan’s reliance on imported liquefied natural gas, which is vulnerable to disruptions due to rising tensions with Beijing, and help meet a projected 13% increase in electricity demand by 2030, driven by the rise of artificial intelligence.
As we have continued to report, the accelerating growth in energy demand from AI data centers has triggered a nuclear power renaissance in the US.
For those who missed it, in our April 2024 note, “The Next Artificial Intelligence Trading,” more than a year ago, we outlined a variety of investment opportunities for the American recovery, most of which have since significantly outperformed the market.
