Setback for Taiwan nuclear plan
By Mure Dickie in Taipei
Published: October 1 2000 18:30GMT | Last Updated: October 1 2000 22:02GMT
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Lin Hsin-yi, Taiwan's economics minister, has recommended that construction of the island's T$169.7bn (£3.7bn) fourth nuclear power plant be halted in a heavy blow for proponents of the controversial project.

In a long-awaited report to the cabinet, Mr Lin said he believed alternative sources of electricity supply could be found for the fourth plant, which has been fiercely opposed by environmentalists and residents.

Scrapping the plant would be in line with election promises made by Chen Shui-bian, Taiwan's president, shortly before his election in March. Officials at Taiwan Power, the state-owned utility, said Mr Lin's decision meant it appeared the project might now be doomed.

However, Tang Fei, the premier and a supporter of the nuclear plant, said a final decision on its fate would not be made until next month following "more detailed investigation".

Mr Tang has even suggested he might step down if the fourth plant is scrapped, while pro-nuclear legislators could also intervene to save the 20-year project.

Supporters argue that the plant's two advanced boiling water reactors and the 2,700MW of electricity they could produce are essential to address an energy deficit in northern Taiwan that threatens economic growth.

Yu Sheng-hsiung, director of Taipower's Nuclear Communications, said scrapping the plant would cost the company a further T$30bn on top of the T$50bn it had already spent on the project. Other officials have suggested that total losses could be much greater.

Cancellation would also increase Taiwan's reliance on imported fossil fuels.

"If this project is really killed, then in the future this country will have a very heavy dependency on coal, oil and natural gas. . . we will not be able to meet carbon-dioxide emission targets," Mr Yu said.

Construction of the plant, which officials claim is about a third complete, has continued while political debate about its future goes on, although bidding for new sub-contracts has been suspended.

Cancellation would be a blow to General Electric of the US, which has the US$1.8bn contract to supply the reactors, although officials say they will be built under contract in Japan.

However, scrapping the plant could be a boon for private energy providers hoping to take advantage of Taiwan's gradual liberalisation of electricity generation. Mr Lin said private companies might be called upon to build liquefied natural gas power plants to make up for any power shortfall.

Opposition to the nuclear plant has centred on fears that any accident could prove a catastrophe for the densely populated island, criticism over Taipower's past safety record and concerns over Taiwan's lack of facilities for long-term storage of nuclear waste. Critics have also pointed at the huge potential for energy efficiency savings in Taiwan.