Taiwan’s Economic Affairs Minister J.W. Kuo recently proposed a plan to build power plants in the Philippines and transmit green energy back to Taiwan, aiming to address the growing demand for renewable energy. Although Kuo later tempered his remarks, the proposal has sparked significant public debate.

Energy companies are optimistic, with many already investing in the Philippines’ potential. However, the plan faces major hurdles, including technical challenges, policy coordination, and cost concerns.

In a recent statement, Kuo initially acknowledged Taiwan’s electricity shortages but clarified that the real issue lies in green energy supply. Industry insiders, particularly in the renewable energy and semiconductor sectors, concur that Taiwan’s green energy supply is inadequate.

While Taiwan’s solar and wind power technologies have matured, land constraints and policy uncertainties remain obstacles. Concurrently, demand for green energy is soaring, particularly from tech and manufacturing giants. Semiconductor companies, driven by carbon-neutral goals and sustainability strategies, face growing pressure to secure stable green energy supplies to avoid relocating production facilities—a move that could increase costs and impact Taiwan’s economy.

Kuo’s plan underscores a broader challenge of insufficient green energy, with cross-border energy imports positioned as a potential solution. While renewable energy players welcome the proposal, it faces feasibility concerns due to the complexity and cost of transporting electricity from the Philippines via undersea cables. Energy loss during transmission remains another key issue.

Despite these challenges, companies like J&V Energy, ATE Energy, and HD Renewable Energy have already established operations in the Philippines. For Taiwan, tapping into the Philippines’ energy potential could help alleviate its renewable energy shortfall, but success will require overcoming significant technical, financial, and policy barriers.