Taiwan is experiencing an energy crisis. As the island completes a phaseout of nuclear power plants—long the bedrock of its energy mix—plans for a promised offshore wind buildup have sputtered. All the while, industry has become more dependent on imports of liquefied natural gas. But that source is not only dirty—it also leaves the island at risk of a blockade and other forms of coercion by China. In 2024, electricity rates in Taiwan hiked twice in the same year after two consecutive years of increases, reaching record levels for industrial users. Another rate hike could be coming this year. Blackouts have become more common.

Taiwanese leaders could find relief if they harness the heat beneath their feet. Sandwiched between two tectonic plates on the Pacific Rim, Taiwan is rich in geothermal resources. Although they have so far mostly gone untapped, that could soon change. President Lai Ching-te has expressed strong support for growing Taiwan’s geothermal footprint to produce more clean power and shore up the island’s grid.

Taiwan is experiencing an energy crisis. As the island completes a phaseout of nuclear power plants—long the bedrock of its energy mix—plans for a promised offshore wind buildup have sputtered. All the while, industry has become more dependent on imports of liquefied natural gas. But that source is not only dirty—it also leaves the island at risk of a blockade and other forms of coercion by China. In 2024, electricity rates in Taiwan hiked twice in the same year after two consecutive years of increases, reaching record levels for industrial users. Another rate hike could be coming this year. Blackouts have become more common.

Taiwanese leaders could find relief if they harness the heat beneath their feet. Sandwiched between two tectonic plates on the Pacific Rim, Taiwan is rich in geothermal resources. Although they have so far mostly gone untapped, that could soon change. President Lai Ching-te has expressed strong support for growing Taiwan’s geothermal footprint to produce more clean power and shore up the island’s grid.

Taiwan’s economics ministry last year rolled out new guidelines to encourage geothermal development. In April, Google announced a deal with Swedish geothermal developer Baseload Capital to build a small pilot-scale geothermal energy facility to power its existing Taiwanese data centers. The companies have not yet announced the plant’s exact location, but drilling has already begun on Taiwan’s east coast. In a show of support from the government, top Lai administration officials in April took part in Taiwan’s leading

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